The global luxury hotel market is projected to reach $239 billion by 2028. However, independent boutique properties are struggling to compete with larger luxury chains and online travel agencies (OTAs) in today's hospitality market. VGS, a marketing and product consulting firm for luxury hospitality, is here to help. Our expertise and innovative approach enable independent luxury hotels to capture more guests from large chains and OTAs, offering superior experiences and driving growth.
Current Challenges for Boutique Luxury Hotels
Overdependence on OTAs: The reliance on OTAs reduces profit margins and hinders direct guest relationships.
Limited Resources & Innovation: Smaller hotels often struggle to compete with well-funded rivals and lack advanced marketing, growth, and product strategies.
The Dominance of Large Chains: Large luxury chains have access to extensive guest data and vast resources, which independent properties lack.
These challenges result in eroded profits and control, negatively affecting targeting and personalization, and preventing strong customer relationships.
How VGS Helps Boutique Luxury Hotels
VGS specializes in luxury hospitality, with a focus on marketing and product practice. We follow an insights-driven philosophy and offer a performance-based agreement. Our approach sets us apart from other industry-agnostic agencies that provide broad, unfocused services, make opinion-based decisions, and have opaque pricing models.
Our custom solutions span three key disciplines:
Insights: We conduct deep analysis to uncover growth opportunities and improve customer experience. Our services include user research, survey development, website and booking data analysis, and persona creation.
Marketing: We offer innovative growth and branding solutions that boost conversions and loyalty. Our services include paid media management, loyalty program development, content marketing, and brand and creative identity.
Product: We optimize the customer journey and experience from booking to stay. Our services include web design and development, booking engine management, pricing and packaging strategies, and mobile application development.
Our data-driven, multidisciplinary process focuses on an insights-driven foundation, a customer-centric approach, and a high-growth philosophy. We aim to improve key performance indicators such as Average Daily Rate (ADR), Occupancy Rates, Return Visits, Revenue Per Available Room (RevPAR), and overall Revenue.
We follow a performance-based pricing model, ensuring our fees are transparent and aligned with client objectives. This approach fosters long-term partnerships and focuses on direct booking revenue.
Our leadership team has a proven track record of building high-growth brands by partnering across organizations. We have successfully transformed luxury hospitality brands, delivering unparalleled results through tailored strategies, key initiatives, and tactics.
Why Choose VGS
VGS stands out due to our luxury hospitality expertise, focus on marketing and product practice, insights-driven philosophy, and performance-based agreement. Our proven approach to transforming luxury hospitality includes a comprehensive process, from discovery and assessment to strategy development, implementation, execution, measurement, and continuous improvement.
We measure success through metrics such as Direct Booking Revenue, Guest Retention, Repeat Business, Return on Advertising Spend (ROAS), and Guest Satisfaction Scores. Our focus on these key indicators ensures that we drive continuous improvement in guest experience and business growth.
Your Call to Action
If you're an independent luxury hotel looking to elevate your brand, capture more guests from large chains and OTAs, and drive growth, VGS is here to help. Contact us for a free consultation and let us create a tailored solution that will transform your boutique luxury hotel into a market leader. Together, we can redefine the luxury hospitality landscape.