Marketing “Cheap Chic”

According to a recent article in BusinessWeek, the shrinking economy is being severely affected by the boomer generation (approximately 1/3 of Americans) who are spending less and trying to save more.

As other population segments won’t be picking up the slack from these boomers, we will need these people to fill our hotel rooms and buy our products for some time to come.

That said, how do you meet the needs of a generation that is used to being catered to, but is now on a budget? The answer is: “cheap chic”.

Most associated with the Target Department stores, companies are developing products that still cater to boomer creature comforts but are offered at a good price or value.

Starwood Hotels was ahead of the crowd in anticipating this trend. The company developed two different hotel chains to tap into the desire for value while still offering some ambiance. The two chains are: Aloft (loft apartments) and Element (low-cost suites). Each chain is offering a lower rate than their traditional brands, a few less services, but is not totally barebones.
Right now there are 25 Aloft Hotels opened so far – in Florida there are 2: one in Jacksonville; and one in Tallahassee. In 2010 to 2011, there will be 3 more in our area of Florida: Aventura, Bay Harbor, and West Palm Beach. No Element hotels are open in Florida now, but they expect in 2011 to have 2 in Orlando and one in Tampa.

Realistically, most current properties are not going to build an entirely new chain. But there are ways to participate in this trend. You just need to be creative – maybe a separate floor; building wing; travel time period, etc.? -- that can appeal to those boomers now making a virtue out of value shopping. “Cheap chic” here we come!