5 Things Hostels Can Learn from Kimpton

The Kimpton Hotels brand, now part of IHG, is booming in the US. They are the industry leader in the boutique hotel segment, which is the fastest-growing segment in hospitality. The Kimpton commitment is massive; guests, employees, and partners all love the company because they are known for taking care of everyone. Here is how Kimpton does it and what lessons hostels can learn from them too.

1. Focus on Experience:

Kimpton's hotels offer a quality of service that rivals those of higher star-rated establishments. They go the extra mile, and the little attention to detail means everything. They provide accommodations that resonate with guests. Some of their hotels host happy hours, even offering a free glass of wine. Kimpton works hard to encourage guests to mingle and have a great time. Go the extra mile. Hostel guests are typically less picky than 3-4 star hotel guests, so you have plenty of room to get creative. When it comes to events, you need to create an experience. Plan the event like it’s a mini celebration. Market it internally and generate buzz around it, even if it happens every day. The experience starts as soon as the guest knows about the event.

2. Keep the Assets Light:

Kimpton prefers to focus on amazing service rather than managing a property portfolio, and a hotel’s location greatly contributes to the guest experience. That is why they pride themselves on being asset-light. Their rapid expansion aligns well with this model, as real estate in prime locations is often not available for purchase. If you are looking to open a hostel or expand to a new location, consider the hostel's location through your guests' eyes. You can truly gauge the experience based on the location alone. Kimpton proves that it is worth renting in order to secure prime spots.

3. Embrace the Community:

Their guests love them. Their employees love them. Even their partners love them. Kimpton embraces rewarding relationships with their partner companies, which include tour companies, suppliers, and OTAs. Every year, they hold a Kimpton Crave event, where they throw one hell of a party, inviting all their partners to have a great time. The hospitality industry is a network of companies that work together. Having your partners like you means everything. You don’t have to throw extravagant parties like Kimpton, but you do need to keep the dialogue open and make your partners feel appreciated. If you don’t consider any companies as partners, then you have a lot of work to do.

4. Use the Right Tools:

Kimpton focuses on the revenue they can generate per average guest per night—not just from room revenue (RevPAR), but from the entire experience (tRevPAR). Their events keep their bar buzzing and revenue flowing, and that’s only one way Kimpton monetizes the experience. To maximize their potential, they use some of the best revenue management and customer experience tools available. While IDeaS, TravelClick, and others may not be available for hostels, products like Hostel Bench are pretty impressive. You can send exit emails to your guests with a survey to track their experience too. Whatever you do, you need to be proactive and willing to invest time or money to complete the task.

5. Work Together:

Kimpton operates as a group of branded hotels functioning under the Kimpton brand. These include the Donovan, Hotel Monaco, Palomar, Eventi, and more. They provide guests with a boutique feel, but together they wield the power of a strong brand, enabling them to negotiate contracts and combine marketing efforts—proven strategies for success. Additionally, they listen to their employees. An hourly employee can send a message or idea to their corporate managers. See here. Hostels working together can achieve greatness. Numerous efforts by independent hostels deserve recognition. HostelsAustralia is reviving a solid network of independents down there, and Hostel Hops offers an excellent tool for hostels to send their guests to other hostels within their network. These are just a couple of examples of how hostels can collaborate. Who knows? Perhaps a group of hostels could eventually gain some bargaining power against OTAs, just like Kimpton. As a manager or owner of a hostel, never overlook or discredit your staff. They may not have the same experience as you, but they interact with guests, often more than the owners and managers do. Make sure they feel appreciated and that they can always reach out when possible. Your groundbreaking idea that will set you apart from your competition could be just around the corner.