In an era when the virtual world seems to be overtaking the real one, it is more important than ever to come up with new and innovative ways of getting guests into your hotel. With stiff competition from the likes of AirBnB and aparthotels, it is necessary to think outside the box when targeting the demanding millennial generation, and often this can simply boil down to offering your product at a lower rate to get a higher turnover of customer. One such company taking up this model is Boxed, an online wholesaler that delivers bulk goods to your door at a low cost rate. Boxed CEO Chieh Huang has seen a gap in the market for another type of low-cost service that he has recently incorporated into his online retail site: hotel stays. Speaking with CNN, Huang said that appealing to millennials who are used to doing everything online is the way forward, and he clearly sees the idea of offering cut price hotel stays as fitting into his business model.
The New York Post has reported that this new site, Boxed Hotels, offers discounts of up to 40% on smaller hotels who are struggling to keep up with the business of attracting millennials. Luxury hotels see Boxed as a way to target a market that may not necessarily be aware of their existence, such is the loyalty of that generation to the wholesale retailers site. The rates offered by Boxed are competitive when viewed against more traditional booking platforms such as Expedia, and one example cited by the Post was a room at the plush Carlyle Hotel in New York going for $390 per night compared to $495 on Expedia. If millennials can’t stretch to the nearly $400 price tag of the Carlyle, boutique and budget hotels are also listed on the site, with a room at the Holiday Inn going for $181, $81 cheaper than the listing on Expedia. If the hard-to-crack millennial market can be opened up to these smaller hotels, expect to see an increase on Boxed and similar sites appearing in the near future.