These hotels offered unique styles and a high degree of personalized attention. And most importantly, each property had a character of its own. These hotels were soon called boutique hotels and the name stuck to them. John A. Fox of PKF Consulting highlighted the important aspects of a boutique hotel when he defined it as one with a high degree of design and a high degree of service. Such properties generally have fewer than 200 rooms, relying on higher room rates and greater profit margins to generate their revenues.
Boutique hotels are able to achieve such high rates due to a number of different factors.
First, they target a more influential segment of travelers who are ready to pay more for a better product and who are willing to try out different hotels offering different experiences. As this segment pays higher rates, they obviously expect more personalized service. The availability of this information empowers hotel employees to provide the high degree of personal attention that is expected of them. Guests who walk into such hotels are greeted by name if they have stayed there before and might even receive enquiries as to the welfare of their spouses and children. To guests who may have resigned themselves to disinterested front desk personnel constantly asking them for their reservation confirmation numbers at check-in, such a welcome comes as a pleasant surprise.