Product Development: What makes a boutique hotel?

(Originally published in TOURISM)

Indeed, just exactly what is a boutique hotel? Christiane Germain, a trailblazer in the boutique sector, recognizes there are many definitions of the concept. Germain is CEO of Le Groupe Germain, which operates several hotels in Québec, Montréal and Toronto, and she has this to say:

“I would characterize a boutique hotel is an establishment which exhibits more of its personality, through a more conceptualized layout and a better‑defined style,” she says. “Boutique hotels come in all shapes and sizes, but perhaps those that best fulfil what the boutique concept evokes succeed by being reflective of the longings of the individuals who prefer this type of establishment.”

There are other aspects, sensitivities and research elements that must be taken into account in the operational development, Germain continues, but once the product exists, the service component must be harmonized with the property: “Guests will expect a certain polish there. This is something members of the staff can help achieve; staff members impart to the establishment the kind of well‑honed atmosphere that resonates with the feel of the place itself.”

Germain’s insight is the product of a relatively young family tradition with roots in the Québec City area, dating back to 1988: “We opened our first hotel, the Germain‑des‑Prés, at Sainte‑Foy, after we had visited Morgans Hotel in New York City.” Opened in 1984, Morgans Hotel claims to be the original boutique hotel. “We very much liked it,” admits Germain, “and we were inspired by its elegance. We realized there was potential for something similar to it in Québec that would render some of the local authenticity and would translate well to our context, without plagiarizing what we saw in New York.”

As the developmental journey within Germain’s team took shape, the true potential became apparent. “We kept on travelling to different places and found this kind of product was missing in many cases. We started to work on a second hotel, this time in the heart of Old‑Québec City: Le Dominion 1912. It would have a more luxurious touch to it than our first hotel, and it became an instant success.”

Instant success indeed: Le Dominion 1912 was named Canada’s Best Hotel (all categories) by Condé Nast Traveler magazine in 2005. Meanwhile, Le Groupe Germain embarked on an expansion initiative that would take it to new markets.

“We opened our Montréal hotel in 1999; another one in Toronto in 2003. Our objective is clear: to open a Germain Hotel in Canada’s major urban areas. We have a very unique concept with a residential component in the works in Calgary; we have plans for Vancouver; we are planning a second hotel in Toronto; and, we would love to go to Halifax. It is about bringing a certain Canada‑wide resonance to our brand.”

This is something which can ultimately be achieved only by enlisting the complicity of all Groupe Germain employees in their respective establishments, she believes: “First, we need to give our employees the right tools and resources. We need to convey to them how we value what they do. The challenge in service enterprises is to support the staff mandated to cater to other people’s needs; we address this by actively seeking employee input into the organizational decision‑making process. They are the stewards of much insight into customer relationship‑building, they often know the answers and solutions to some of the challenges we face, and they frequently identify the problems before we do. Because we engage them at this level, they feel that much more valued and appreciated.”

And this approach is not limited only to higher‑end hotels. Le Groupe Germain has another label in the works. “I don’t want to call it a chain yet because the first one is just being built and will open in Montréal in September. This new line is named: ALT Hotels.” The inaugural property will feature a series of energy‑efficient measures: heating and cooling with geothermal systems, recovery of heat from outdoor air and exhaust air leaving the building, recovery of heat from the water used in commercial washers, energy‑efficient lighting throughout, a main light switch to control all lights in the room when guests check out, geothermal hot water heaters, geothermally‑heated tiles on the ground floor, door contacts in stairwells to reduce lighting by half when not in use, among other things.

“We conceived the ALT line as an alternative to the more expensive hotel product, a segment where we find there is not a lot of differentiation between the hotels," explains Germain. "The ALT room itself might not be as large as a conventional room in that category, but there will be a much better use of the available space from a conceptual perspective. The decor will be more contemporary. There will be particular emphasis on the materials we use and on how they contribute to enrich the experience. What we have in mind is far more than an increased personalization; it involves an essential exploration of the design to impart to it a more contemporary flavour.”

Germain believes this kind of approach does not impede affordability from the consumer’s point of view. “We are just trying to give them something that has better craftsmanship to it, with comfortable beds and sheets. Even if you pay less, you don’t want the sheets to feel as though they were washed with sandpaper.”

Much of Germain’s perception was acquired through her own travels and analysis: “When we develop products, everything is related to the individual customer nowadays. When customers travel, they seek are distinctive moments; consequently, we communicate more with people, rather than with population segments. I would suggest that with us, age is not a valid frame of reference. It is more about curiosity and people’s interest in trying new things that matters. The desire to experience new decors – that is what will lure and satisfy them. We are laying the groundwork for that.

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