Less may mean more
While the 1% of the economy can still splurge on that US$100 entrée at the most luxurious resort, what about the “average” American? With many still unemployed (the U.S. unemployment rate is still at a whopping 8.6%), and those who are employed punching every penny, there has been a sharp turn in the hotel market to cut the extravagance and simplify as the desires and needs of the consumer have shifted.
Case in point: New York City’s Ace Hotel. With a lobby including long wooden tables for socializing, reasonably priced drinks (both caffeinated and alcoholic) and a sandwich shop (No. 7 Sub Shop), both resident New Yorkers and travelers are attracted to the more relaxed yet stylish feel. The hotel, in turn, has planted itself as a “go-to” spot for nightlife, food and a room.
Another great example is Yotel, which embodies an “Apple” mindset with simple rooms that offer quality for more extravagant consumers, but prices low enough to be affordable; in essence, both the top-tier and middle-tier spenders are attracted to the product, much like Apple products.
The lesson? Sometimes less is more attractive to the consumer.