We have seen many nice and successful examples, be it in tourist hotspots, such as Las Vegas or Macau, with their additional casino backdrops, or large out-of-town malls with huge catchment areas, such as Mall of America, which have dozens of hotels located nearby. There are also good examples within our vicinity.
Retailers and hotels can benefit from each other in a number of ways; these are my “Top 7”:
1. Cross-Promotion: Hotels can partner with retail businesses by offering special promotions or discounts to their guests, thereby encouraging them to shop at nearby stores. Similarly, retail businesses can promote hotel packages or accommodation to their customers, which could lead to increased bookings.
2. Convenience for Guests: Hotels can enhance the guest experience by offering on-site retail options, such as gift shops, convenience stores, or boutiques. That can provide an additional level of convenience for guests who want to buy forgotten items or souvenirs without having to leave the premises.
3. Shared Amenities: Retail businesses located within or near hotels can benefit from the shared amenities, such as parking facilities, security, and foot traffic generated by hotel guests. That can increase visibility and footfall for retail establishments, potentially leading to higher sales.
4. Tourist Attractions: Hotels often serve as hubs for tourists, providing them with information about local attractions, restaurants, and shopping destinations. By recommending nearby retail establishments, hotels can drive additional business to those retailers, while retail businesses can enhance the overall tourist experience by providing unique products or experiences.
5. Collaborative Events: Hotels and retail businesses can collaborate on events or promotions, such as fashion shows, product launches, and pop-up shops. Such collaborations can attract a wider audience and create buzz around both the hotel and the retail brand.
6. Corporate Partnerships: Hotels can form partnerships with corporate retail brands to offer exclusive perks or discounts to their business clientele. That can be particularly appealing for business travelers who may have specific shopping needs or preferences.
7. Customized Experiences: Hotels can offer personalized shopping experiences to their guests by partnering with retail businesses to provide curated shopping tours, styling services, or exclusive access to limited-edition products. That adds value to the guest experience and encourages spending at retail outlets.
Destinations like Macau or Las Vegas are nice and successful examples, how tourist hotspots combine hotels and shopping malls.
Overall, by leveraging their proximity, shared customer base, and complementary offerings, retail businesses and hotels can create synergistic relationships that benefit both industries and enhance the overall guest experience.
As the needs and desires of customers are in a constant state of change, there will be some locations at which shopping areas/levels are converted into hotel areas (short stay) or residential apartments (long stay). “Providence Rhode Island est.1828”, one of the oldest shopping centers in the USA, has been transformed from a retail establishment into a housing area, but has retained some services and restaurants.
Collaboration and team play involve more than the state-of-the-art. It keeps your facilities and businesses strong and competitive. Simply put: Learn from each other’s strengths and make the most of them.
Klaus Striebich
Klaus Striebich is Managing Director of RaRE Advise and Head of the ACROSS Advisory Board.
