Short answer
When developing or marketing accommodation services, prioritize strategic location and competitive pricing, as these are key drivers of satisfaction for family travelers, even if other amenities are less developed.
- Field
- Innovation & Markets
- Source
- Ilomata International Journal of Management (2023)
- Method
- Qualitative research
- Evidence
- Strong effect
Virtual Hotel Operators (VHOs) like OYO and RedDoorz offer significant advantages to family travelers by providing accommodations strategically located near tourist attractions and at affordable price points. This innovation & markets research insight is drawn from a 2023 study published in Ilomata International Journal of Management. Using Qualitative research, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When developing or marketing accommodation services, prioritize strategic location and competitive pricing, as these are key drivers of satisfaction for family travelers, even if other amenities are less developed.
Virtual Hotel Operators Enhance Family Travel Through Strategic Location and Affordability
Virtual Hotel Operators (VHOs) like OYO and RedDoorz offer significant advantages to family travelers by providing accommodations strategically located near tourist attractions and at affordable price points.
Ilomata International Journal of Management · 2023
Key Findings
- 01VHOs are primarily advantageous due to their proximity to major tourist destinations.
- 02Affordable pricing is a key benefit driving family traveler satisfaction with VHOs.
- 03Despite some drawbacks (e.g., less appealing environment, lack of parking, reduced privacy), the core advantages of location and price often outweigh these deficiencies for family travelers.
Application
Design takeaway
When developing or marketing accommodation services, prioritize strategic location and competitive pricing, as these are key drivers of satisfaction for family travelers, even if other amenities are less developed.
How to apply
When evaluating new market opportunities in the travel and hospitality sector, analyze the core benefits offered by innovative service providers and assess how these benefits align with the unmet needs of specific customer segments.
Project actions
- 01When researching a new product or service, focus on identifying its main selling points.
- 02Consider how different customer groups might value these selling points differently.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Focuses on a specific, relevant user group (family travelers).
- +Identifies clear advantages of an innovative service model (VHOs).
Limitations
The findings are based on the experiences of family travelers in specific cities and VHO brands, so they might not apply everywhere or to all types of travelers.
Reliability & validity
The qualitative nature of the study relies on subjective experiences, which may affect generalizability. Triangulation of data from multiple family travelers and potentially comparing their feedback with online reviews could enhance validity.
Think critically
To what extent do the identified advantages of VHOs represent a sustainable competitive advantage, or are they easily replicable by traditional accommodation providers?
Design Principles
"Value Proposition Alignment: Ensure the core value proposition of a service directly addresses the primary needs and priorities of the target market segment."
Understanding the core value propositions of emerging service models is crucial for market positioning and competitive strategy. For VHOs, highlighting their accessibility and cost-effectiveness can attract specific market segments, while for traditional hotels, it informs strategies to compete or integrate with these new players.
What This Means for Your Design
Virtual hotel booking sites are good for families because they are usually near tourist attractions and don't cost a lot of money, which makes people happy even if there are a few problems.
How to use in your project
- 1.Use this insight to justify the selection of a particular market segment for your design project, explaining why your proposed solution would appeal to them based on similar value propositions.
Add to My Project
Quick Cite
Paragraph starter
This research highlights that Virtual Hotel Operators (VHOs) have successfully captured a market segment of family travelers by prioritizing strategic location near tourist destinations and offering affordable pricing. These core advantages often outweigh perceived drawbacks such as less appealing environments or limited amenities, indicating a strong alignment with key consumer needs in the travel accommodation market.
Source
Ilomata International Journal of Management
Positive Aspect of Virtual Hotel Operator
journal · 2023
View sourceQuestions About This Research
- What does the research say about virtual hotel operators enhance family travel through strategic location and affordability?
- When developing or marketing accommodation services, prioritize strategic location and competitive pricing, as these are key drivers of satisfaction for family travelers, even if other amenities are less developed. Evidence: Ilomata International Journal of Management (2023).
- Why does "Virtual Hotel Operators Enhance Family Travel Through Strategic Location and Affordability" matter for design?
- Understanding the core value propositions of emerging service models is crucial for market positioning and competitive strategy. For VHOs, highlighting their accessibility and cost-effectiveness can attract specific market segments, while for traditional hotels, it informs strategies to compete or integrate with these new players.
- How can designers apply this research?
- When developing or marketing accommodation services, prioritize strategic location and competitive pricing, as these are key drivers of satisfaction for family travelers, even if other amenities are less developed.
- What were the main findings?
- VHOs are primarily advantageous due to their proximity to major tourist destinations.. Affordable pricing is a key benefit driving family traveler satisfaction with VHOs.. Despite some drawbacks (e.g., less appealing environment, lack of parking, reduced privacy), the core advantages of location and price often outweigh these deficiencies for family travelers.
- What research method was used?
- Qualitative research.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2023 journal from Ilomata International Journal of Management.
- What should I do differently in my next project?
- When evaluating new market opportunities in the travel and hospitality sector, analyze the core benefits offered by innovative service providers and assess how these benefits align with the unmet needs of specific customer segments.
- What are the limitations?
- The study focuses solely on family travelers and may not represent the experiences of other traveler demographics. The specific VHOs studied (OYO and RedDoorz) may have unique characteristics not generalizable to all VHOs.