Flevy Management Insights Case Study
Platform Strategy for Boutique Hotels in Urban Markets


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Platform Strategy to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The boutique hotel chain faced a 15% decline in occupancy rates due to outdated technology and rising competition from short-term rental platforms. By implementing a customized guest experience platform, the chain achieved a 12% increase in occupancy rates and a 15% rise in guest satisfaction, highlighting the importance of Strategic Planning and Digital Transformation in revitalizing brand performance.

Reading time: 10 minutes

Consider this scenario: A boutique hotel chain in major urban centers is facing a decline in occupancy rates by 15% over the last two years, signaling a pressing need for a revamped platform strategy.

The organization is grappling with internal challenges, including outdated technology systems and a lack of personalized guest experiences, while externally, the rise of short-term rental platforms and changing traveler preferences have significantly impacted its market position. The primary strategic objective of the organization is to revitalize its brand and increase occupancy rates through the implementation of an advanced, data-driven platform strategy that enhances guest experience and operational efficiency.



The boutique hotel chain, amidst a dynamic and competitive accommodation industry, finds its growth stymied by operational inefficiencies and a lack of innovation in customer engagement. A deeper analysis might reveal that these challenges stem from an inadequate adoption of technology and a failure to leverage data analytics for personalized guest experiences. As the industry continues to evolve rapidly with technological advancements, the organization's reluctance to embrace change has placed it at a competitive disadvantage.

Industry Analysis

The accommodation industry is currently experiencing a transformation, influenced by technology and changing consumer behaviors. The rise of platform-based business models has revolutionized how services are delivered and consumed.

Examining the competitive landscape reveals:

  • Internal Rivalry: High, due to an influx of non-traditional accommodation options and a race to offer unique guest experiences.
  • Supplier Power: Moderate, with a wide range of service providers available but high demand for quality and customization.
  • Buyer Power: High, as consumers have more choices and access to information, making them more price-sensitive and demanding.
  • Threat of New Entrants: Moderate, given the significant investment required but lowered by technological platforms that reduce entry barriers.
  • Threat of Substitutes: High, especially from short-term rental platforms and other alternative lodging options.

Emergent trends include the increasing importance of sustainability, the demand for personalized experiences, and the rise of digital nomadism. These shifts present opportunities for differentiation but also pose risks related to rapidly changing consumer preferences and technological disruption.

  • Adoption of green practices can attract environmentally conscious guests but requires upfront investment.
  • Personalization through technology enhances guest satisfaction but demands significant data collection and analysis capabilities.
  • Flexible lodging options for digital nomads open new revenue streams but challenge traditional business models.

For a deeper analysis, take a look at these Industry Analysis best practices:

Strategic Analysis Model (Excel workbook)
Consolidation-Endgame Curve Framework (29-slide PowerPoint deck)
Porter's Five Forces (26-slide PowerPoint deck)
Market Entry Strategy Toolkit (109-slide PowerPoint deck)
4 Actions Framework (30-slide PowerPoint deck)
View additional Platform Strategy best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Environmental and Internal Assessment

The boutique hotel chain's environment is characterized by rapid technological change and shifting consumer expectations. Internally, the chain possesses a strong brand and customer service culture but is hampered by outdated technology and processes.

A Benchmarking Analysis against industry leaders highlights gaps in digital engagement, revenue management, and operational efficiency. Embracing digital transformation and data analytics could drive significant improvements in guest experiences and cost management.

A Value Chain Analysis identifies inefficiencies in the chain's operations, particularly in areas such as online booking processes, guest service delivery, and back-office functions. Streamlining these areas through technology could enhance guest satisfaction and operational effectiveness.

An RBV Analysis reveals that the chain's core strengths lie in its unique properties and customer service ethos. However, leveraging these assets effectively in the digital age requires investment in technology and innovation.

Strategic Initiatives

Based on the insights from the industry analysis and internal assessments, the leadership team has identified the following strategic initiatives to be implemented over the next 3 years.

  • Development of a Customized Guest Experience Platform: This initiative aims to leverage data analytics and AI to offer personalized travel experiences, driving increased loyalty and occupancy rates. The value creation lies in differentiating the brand in a crowded market and enhancing guest satisfaction, expected to result in higher repeat booking rates. Resources required include technology investment in data analytics and AI capabilities.
  • Operational Efficiency through Digital Transformation: Streamlining operations by adopting modern Property Management Systems (PMS) and automating manual processes. The intended impact is reduced operational costs and improved guest services. Value creation comes from cost savings and increased guest satisfaction, with significant investment needed in technology and training.
  • Sustainability Initiatives to Attract Eco-conscious Travelers: Implementing green practices across all properties to meet the growing demand for sustainable travel options. This initiative aims to enhance the brand's appeal to environmentally conscious guests and generate positive PR. Resources required include investments in sustainable technologies and practices.

Platform Strategy Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What you measure is what you get. Senior executives understand that their organization's measurement system strongly affects the behavior of managers and employees.
     – Robert S. Kaplan and David P. Norton (creators of the Balanced Scorecard)

  • Occupancy Rate Increase: Measures the effectiveness of the new platform strategy in attracting and retaining guests.
  • Guest Satisfaction Score: Evaluates the impact of personalized experiences and operational improvements on guest satisfaction.
  • Cost Savings from Operational Efficiencies: Quantifies the financial benefits derived from digital transformation initiatives.

Monitoring these KPIs offers insights into the strategic initiatives' success, enabling ongoing adjustments to maximize impact and achieve the strategic objectives.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Platform Strategy Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Platform Strategy. These resources below were developed by management consulting firms and Platform Strategy subject matter experts.

Platform Strategy Deliverables

These are a selection of deliverables across all the strategic initiatives.

  • Guest Experience Platform Development Plan (PPT)
  • Digital Transformation Roadmap (PPT)
  • Sustainability Implementation Framework (PPT)
  • Operational Efficiency Financial Model (Excel)

Explore more Platform Strategy deliverables

Development of a Customized Guest Experience Platform

The strategic team decided to employ the Customer Journey Mapping and Service Design Thinking frameworks to enhance the development of a customized guest experience platform. Customer Journey Mapping allowed the organization to visualize the end-to-end experience of a guest, from initial booking to post-stay feedback, identifying key touchpoints that could be personalized. This framework was instrumental in understanding the guest's needs, emotions, and pain points throughout their stay. Service Design Thinking, on the other hand, provided a holistic approach to designing services that meet guests' needs in an innovative and user-friendly manner. It was crucial for integrating the physical and digital experiences of guests in a seamless manner.

Following the insights gained from these frameworks, the team implemented several key actions:

  • Conducted in-depth interviews and surveys with past, current, and potential guests to map out their journey, focusing on emotional highs and lows.
  • Identified critical touchpoints for personalization, such as room selection, check-in process, and in-room amenities, using the Customer Journey Mapping insights.
  • Applied Service Design Thinking to prototype and test new digital features on the platform, including a mobile app that offers personalized room control, local experience suggestions, and seamless check-out options.
  • Iteratively refined the platform's features based on guest feedback and usage data, ensuring continuous improvement and relevance.

The implementation of these frameworks led to the successful launch of the customized guest experience platform. Guest satisfaction scores saw a significant increase, with particular praise for the personalized and seamless nature of the digital interactions. The platform also facilitated a better understanding of guest preferences, enabling further refinements and targeted marketing strategies, ultimately leading to increased occupancy rates and guest loyalty.

Operational Efficiency through Digital Transformation

For this strategic initiative, the Balanced Scorecard and the Theory of Constraints were selected as the guiding frameworks. The Balanced Scorecard provided a comprehensive overview of the organization's operational performance from multiple perspectives, including financial, customer, internal processes, and learning and growth. This was pivotal for identifying areas where digital transformation could have the most significant impact. The Theory of Constraints helped the team to systematically identify and address the most critical bottlenecks in operations that were hindering efficiency and guest satisfaction. These frameworks were essential for prioritizing digital investments and ensuring they delivered value to both the organization and its guests.

In implementing these frameworks, several steps were taken:

  • Developed a Balanced Scorecard to measure current operational performance and identify areas for improvement through digital technologies.
  • Used the Theory of Constraints to pinpoint the most significant bottlenecks in guest service delivery and back-office operations.
  • Implemented a new Property Management System (PMS) to automate manual processes, informed by the identified constraints and Balanced Scorecard metrics.
  • Trained staff on the new systems and continuously monitored performance against the Balanced Scorecard to measure impact and guide further improvements.

The adoption of these frameworks facilitated a successful digital transformation within the organization. Operational costs were reduced by 20%, and guest feedback highlighted improvements in service speed and quality. The Balanced Scorecard enabled ongoing monitoring and optimization of operations, ensuring that the benefits of digital transformation were sustained over time.

Sustainability Initiatives to Attract Eco-conscious Travelers

For the sustainability initiative, the frameworks of Triple Bottom Line (TBL) and Stakeholder Theory were utilized. The Triple Bottom Line framework guided the organization in evaluating its performance not just in financial terms, but also on environmental and social fronts. This comprehensive approach was crucial for embedding sustainability into the core operations and value proposition of the boutique hotel chain. Stakeholder Theory was instrumental in identifying and prioritizing the expectations of various stakeholders, including guests, employees, local communities, and environmental groups, ensuring that the sustainability initiatives addressed their concerns and aspirations effectively.

The strategic team undertook the following actions based on these frameworks:

  • Assessed the organization's current environmental impact and identified key areas for improvement, such as energy use, waste management, and sourcing of sustainable materials, guided by the TBL framework.
  • Engaged with stakeholders through workshops and surveys to understand their sustainability expectations and gain buy-in for the proposed initiatives.
  • Implemented green practices across all properties, including the installation of energy-efficient systems and the reduction of single-use plastics, informed by stakeholder priorities and TBL insights.
  • Launched a marketing campaign to communicate the sustainability efforts to guests and stakeholders, highlighting the positive environmental and social impacts.

The implementation of these frameworks resulted in the successful integration of sustainability into the hotel chain's operations and brand identity. Guest surveys indicated a high level of appreciation for the eco-friendly practices, contributing to increased bookings from environmentally conscious travelers. The organization also saw improvements in its Triple Bottom Line performance, with reduced environmental impact and enhanced community relations, further solidifying its market position.

Additional Resources Relevant to Platform Strategy

Here are additional best practices relevant to Platform Strategy from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Occupancy rates increased by 12% year-over-year, attributed to the implementation of a customized guest experience platform.
  • Guest satisfaction scores rose by 15%, with significant improvements noted in personalized service and digital interaction quality.
  • Operational costs were reduced by 20% through the adoption of a new Property Management System (PMS) and automation of manual processes.
  • Bookings from environmentally conscious travelers grew by 25%, following the launch of sustainability initiatives and marketing campaigns.
  • Continuous refinement of the guest experience platform based on feedback and usage data led to an increase in repeat booking rates by 18%.

The boutique hotel chain's strategic initiatives have yielded notable successes, particularly in increasing occupancy rates, enhancing guest satisfaction, and reducing operational costs. The implementation of a customized guest experience platform has proven effective in differentiating the brand in a competitive market, as evidenced by the significant improvements in guest satisfaction scores and occupancy rates. The digital transformation initiative has also delivered substantial cost savings, demonstrating the value of investing in technology to streamline operations. However, while the sustainability initiatives attracted a new segment of eco-conscious travelers, the overall impact on the chain's market position against short-term rental platforms and alternative lodging options remains a challenge. The results indicate that while the strategic initiatives have strengthened the chain's competitive stance, there remains room for improvement, particularly in further leveraging technology to enhance operational efficiency and guest engagement.

Given the mixed outcomes, the recommended next steps should focus on deepening the integration of technology across all aspects of the hotel's operations and guest services. This includes further investment in AI and machine learning to enhance the personalization of guest experiences, exploring partnerships with technology providers to innovate service delivery, and expanding the sustainability initiatives to include more comprehensive green practices. Additionally, a more aggressive marketing strategy that highlights the unique value proposition of the boutique hotel chain, especially its sustainability efforts and personalized guest experiences, could further improve occupancy rates and competitive positioning. Continuous monitoring and adaptation of strategies based on guest feedback and market trends will be crucial for sustaining growth and profitability.

Source: Platform Strategy for Boutique Hotels in Urban Markets, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Platform Strategy Optimization for Online Museum Engagement

Scenario: An emerging virtual museum platform is facing a strategic challenge in scaling its user base and enhancing engagement amidst fierce competition in the digital cultural space.

Read Full Case Study

Platform Strategy Overhaul for Boutique Gaming Enterprise

Scenario: The organization in question operates within the boutique gaming industry and has recently identified a plateau in user growth and engagement on its platform.

Read Full Case Study

E-commerce Platform Integration for Specialty Retailer

Scenario: The organization is a specialty retailer with a significant online presence, selling premium, niche market products.

Read Full Case Study

Platform Strategy for Boutique Hotel Chain in the Hospitality Industry

Scenario: A boutique hotel chain is re-evaluating its platform strategy to address a 20% decline in occupancy rates and a 15% decrease in customer satisfaction scores over the past year.

Read Full Case Study

Comprehensive Digital Learning Strategy for an Online Education Platform

Scenario: An innovative online education platform is struggling to maintain its competitive edge amidst rising customer acquisition costs and a 20% drop in user engagement.

Read Full Case Study

Digital Transformation Strategy for Live Events Company in North America

Scenario: A leading live events company in North America is struggling to adapt its platform strategy to the rapidly changing entertainment landscape.

Read Full Case Study

Platform Strategy Initiative for Spectator Sports Organization in Digital Media

Scenario: A prominent spectator sports organization specializing in digital media faces significant challenges in maintaining its market position due to an outdated platform strategy.

Read Full Case Study

Platform Strategy Enhancement for Luxury E-commerce

Scenario: The organization in question operates within the luxury e-commerce vertical, specializing in high-end fashion and accessories.

Read Full Case Study

Platform Strategy Development for Professional Services Firm in HR Consultancy

Scenario: A leading HR consultancy firm is navigating the complexities of digital transformation, focusing on a platform strategy to enhance its market position.

Read Full Case Study

Global Platform Strategy for Digital Arts Publishing House

Scenario: A leading digital arts publishing house is navigating the complexities of digital transformation with a focus on refining its platform strategy.

Read Full Case Study

Telecom Platform Strategy Revitalization for Niche Vertical

Scenario: The organization is a mid-sized telecom operator in the professional services vertical, which has recently been facing stagnation in user growth and a decline in average revenue per user (ARPU).

Read Full Case Study

Omni-Channel Strategy for Innovative Food and Beverage Online Retailer

Scenario: An emerging food and beverage online retailer is facing significant challenges in implementing an effective platform strategy amid the rapidly evolving e-commerce landscape.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.