Tuesday, October 25, 2011

Move Up-Market to Differentiate: Burj Al Arab

If you are in a commodity market there might be room to move up-market for new products.

For decades the hotels of the world worked on a rating system of 1 to 5 stars. A 5 star rating meant the best in terms of service, luxury and amenities. That high rating was accompanied by the highest prices.

So if you were developing a new luxury hotel you would be competing in a crowded market even with a five star rating.

What’s the answer? Differentiate your hotel by creating a new category.

The Jumeirah Group differentiated the Burj Al Arab hotel in Dubai by designing lavish luxury into the property and exquisite service. The look and feel was so superior to any other hotel that it was labeled as a Seven Star Hotel.

Once granted an imagination-capturing label like that – the label sticks.

Leaders will always have followers. It seems that at least a half dozen other new hotels around the world are claiming Seven Star Rating.

Apparently, (I haven’t been there yet) the Burj Al Arab offers check-in desks on every floor and Rolls Royce limousine service. Rooms start at $1,000 a night and run up to $25,000.

With luxury like that I don’t expect to hear about an eight star hotel anytime soon. But maybe I’m not thinking big enough yet.

If you are fighting for scraps in the middle of your market maybe it's time to move up-market and claim your Seven Star rating.

George Torok

Marketing Speaker


1 comment:

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