Value Add and beat the Accommodation Service Providers

hotelTreasury on Collins Boutique Apartment Hotel have nailed it and created a business model that has made them arguably the best value for money tourist, corporate accommodation and weekend stays in Melbourne. (check out the reviews, Rated as #1 Hotel in Melbourne)

They clearly identified their customers WIIFM’s and built it into the packages they currently offer

The Booking.com’s, Expedia, Trivago’s etc. are eating into the bottom line profit of the accommodation industry, so they have created a package that is only available by booking directly and this taps into the hidden desires of every traveller today

Everybody loves Freebies and value for money

And this is where they have really nailed it
Ask yourself, would this appeal to you when you are looking for accommodation in Melbourne?

  • Free breakfast,
    yes, I know lots do that now, but the choices for breakfast is vast and the ambiance is delightful
  • Plus, on Sunday you can have breakfast right up to 11.00am, who doesn’t want a sleep in on Sunday morning?
  • Free “Wine Down” from 4-6pm that is, complimentary wines and top ups — and the top ups are freely given.
  • Free access to Treasured Guest Lounge for drinks and snacks from 10.00am to 7.00pm every day and that includes access to an expresso machine and a range of freshly baked croissants, how good is this! and could be used for casual business meetings, interviews, in fact I saw several business meetings being held later in the day.
    Or as a traveller just to relax, wind down, read a book or one of the newspapers and magazines that are available.
  • Free late check out until to 12.00pm
  • Free bottles of water on your day of arrival
  • Free Netflix in your room
  • Nespresso coffee machine in your room
  • A Joint venture with Red Spice Road, one of the top rated restaurants in Melbourne offering a discounted dining experience (we took them up on this package and it is first class!
  • Parking, though they don’t have onsite parking, they have made it super simple with a company who provides undercover secure parking at discounted rates.

Does it work and how can they afford it?

First, some of it is factored into the pricing model and some would be offset by the extra room occupancy.

  • On weekends they have a 95 -100% occupancy
  • Mid-week, their occupancy is an average of 85%
  • A massive repeat corporate client base, some have stayed 15-20 times and up to a month at a time
  • On TripAdvisor they are consistently rated as the top Hotel in Melbourne

Do the maths and you can quickly work out their business model works and would be very profitable

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