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   Hotels Increase Amenities for Guests, Particularly 
at the Highest End of Market
New Amenities Offered in the Industry
NEW YORK - Oct. 19, 2000 -- According to a recent analysis by PricewaterhouseCoopers Hospitality & Leisure Practice, guests at hotels across the country are now greeted by a myriad of new amenities ranging from a choice in hand-drawn baths to the latest in electronic devices to rubber-ducks to float in the bathtub.

According to the PricewaterhouseCoopers study, hotels add amenities for the following reasons: 

  • to enhance the perceived guest experience during this period of significant rate increases; 
  • to compete for top paying guests in an increasingly competitive environment; 
  • to capitalize on new revenue opportunities; and 
  • to respond to a rise in consumer expectations.
In the Upper-Upscale sector of the market, where new amenities are the most prevalent, room rates have risen the most quickly on a percentage basis. Room rates rose 5.5 percent in 1999, will rise 4.7 percent in 2000 and are expected to rise another 4.4 percent in 2001. These rate increases compare with the general market where room rates rose 4.0 in 1999, will rise 4.0 in 2000 and are expected to rise 3.6 percent in 2001.

�Of course these larger percentage increases are on much higher dollar amounts. Upper-Upscale properties are attempting to add more value, and to make the guest stay seem extra special,� said Bjorn Hanson, Ph.D., global practice leader, PricewaterhouseCoopers.

Upper-Upscale supply currently represents 18 percent of the supply in the U.S. market and 26 percent of the supply in the market with new properties under construction. With these new rooms coming into the market, an environment of intense competition for consumers exists, extending beyond the Upper-Upscale segment to all areas of the industry, where general supply growth has been rapid for three years.

The hotel industry is also quietly using many fee-based amenities mixed in with their free offerings to increase revenue without raising room rates. �Special spa services, such as in-room massages, and expensive hand-drawn baths are inventive ways for hotels to charge guests more for a room without raising rates,� said Dr. Hanson.

According to PricewaterhouseCoopers, hotels are finding acceptance among consumers of both the fee-based and the free amenities. Consumers today are accustomed to a certain level of affluence and comfort and expect this to be reflected in their hotel experiences.

Among the amenities offered currently in hotels, PricewaterhouseCoopers has identified the following, many of which are new to the industry:

  • in-room fireplace, 
  • in-room massage, 
  • selection of bottled water,
  • �Welcome Back� gift, 
  • bathrobe, slipper, 
  • VHS, DVD player and library of tapes and discs, 
  • selection of books and/or magazines, 
  • local guides and maps, 
  • dictionary and thesaurus, 
  • fresh flowers and plants, 
  • humidifier,
  • ionizer/air purifier, 
  • butler/hostess/host, 
  • driver on call, 
  • beeper/pager, 
  • menu with selection of up to 10 types of pillows, 
  • +300 count sheets, 
  • upscale sound system, 
  • towel warmer, 
  • shoeshine machine,
  • in-room fax in a sound proof cabinet, 
  • sound generator, 
  • ice delivered twice a day, 
  • bathroom scale, 
  • recliner with reading light, 
  • fish tank, 
  • in-room exercise equipment, 
  • menu of baths to be drawn, 
  • call forwarding and private screening for telephone calls, 
  • temperature gauge for shower and bath, 
  • personal handwritten note from general manager, 
  • umbrella, and 
  • multiple television.
PricewaterhouseCoopers Hospitality and Leisure Group provides services including management, technology, human resources and financial consulting in North America, Europe, the Middle East and Africa. The group has a partnership with Smith Travel Research.
###
Contact:
PricewaterhouseCoopers, New York
Wendy Determan
212/596-5079
[email protected]
www.pwcglobal.com

Also See Following a Strong Year in 2000, Rapid Supply Growth In U.S. Lodging Industry Will Place Pressure On Key Lodging Markets in 2001 and 2002 / July 2000 
Expecting Nearly Half of Business Travelers to be Women, The Pan Pacific San Francisco is Fine Tuning Amenities / Feb 2000 


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