citizenM's CASE STUDY

When we embarked on the journey to redefine hospitality, we knew the industry was ripe for disruption. The status quo—luxury hotels with exorbitant pricing and budget hotels lacking in comfort—left a gaping void waiting to be filled. It was within this gap that citizenM, founded in 2008 in the Netherlands, sought to establish itself as the new frontier in affordable luxury accommodations. The term 'citizenM'—short for 'citizen mobile'—speaks to our commitment to the mobile, jet-setting citizens of the world who desire high quality and reasonable pricing without sacrificing comfort and style.

Innovative Business Model

From the onset, citizenM operated on an avant-garde business model that fused technology, modular construction, and contemporary design. Embracing modular construction techniques, we ensured a consistent look and feel across all our properties, facilitating faster and more economical building times compared to traditional methods. This approach alone has dramatically reduced our construction costs by approximately 30% (source: Modular Building Institute). Another cornerstone of our business model is our keen focus on technology. This tech-centric approach starts from the booking process and extends to the guest experience. We adopted an online-only booking system, which streamlines the reservation experience for our customers while simultaneously reducing our operational costs. Upon arriving at any citizenM hotel, guests can check in and out using self-service kiosks. Inside the rooms, in-room tablets allow guests to control everything from lighting to television settings, tailoring the room ambiance to their preferences. The integration of technology goes beyond convenience; it's intricately connected to our customer-centric value proposition. According to a survey by Oracle (2022), 66% of global travelers prefer contactless operations, a statistic that underlines the importance of our tech investment.

Revenue Streams

Our revenue model is just as innovative as our business construction techniques. Primarily, we draw revenue from room rentals based on a fixed-rate pricing structure. Offering a standardized room type eliminates confusion and unnecessary extras, providing clear, straightforward pricing no matter the city. This has proven successful, with occupancy rates frequently surpassing 90% across our properties. Food and beverage services are another significant source of revenue. Available 24/7, our 'canteens' offer a variety of high-quality options to satisfy the cravings of our guests at any time of day or night. In addition, recognizing the growing trend of remote work, we've adapted by offering subscription-based access to our well-designed communal spaces for co-working, which has added another robust revenue stream.

Redefining Guest Experience

Traditional hospitality often hinges on luxury features that appeal to a certain market segment. Our approach diverges by blending the luxury elements with affordability. We have transformed our hotel lobbies into vibrant social hubs—living rooms filled with contemporary art, designer furniture, and comprehensive amenities. Experience selling is at the heart of what we do. Guests aren't just buying a room; they are buying an experience. From our aesthetically pleasing design elements to the emotional draw of feeling at home, we've centered our services around what modern travelers crave. According to a study by Deloitte (2021), 57% of travelers are willing to pay more for personalized experiences, which is precisely where our business excels.

Targeting the Modern Traveler

Our customer segments predominantly include urban travelers, business travelers, and millennial travelers. These customers prioritize convenience, efficiency, and comfort. For example, in each of our hotel rooms, guests will find a king-size bed, customizable lighting, and high-speed Wi-Fi—features designed to meet the needs of millennial and business travelers alike. We also capitalize on the potent combination of design and functionality. Every room offers six different pillows, free movies on demand, and non-smoking environments. Our hotels are equipped with rooftop bars, 24-hour gyms, and even shuttle services to ensure that guests have everything they need at their fingertips.

Strategic Partnerships

We believe our strategic partnerships are instrumental in sustaining our innovative edge. Collaboration with companies like Vitra, Samsung, Philips, and Apple ensures top-quality furnishings and high-tech amenities in our rooms and public spaces. Furthermore, partnerships with local cultural and lifestyle brands such as MENDO, Monocle, and Citi Bike enrich our offerings and create synergies that benefit both our guests and the local economy.

Social and Environmental Impact

In today's business landscape, social impact cannot be overlooked. Our quest to redefine hospitality goes beyond offering affordable luxury; it's about making a positive difference. We've embraced sustainable construction practices, such as the use of modular techniques, which reduce material waste and energy consumption by up to 50% compared to traditional construction (source: McKinsey & Company). Moreover, our properties are designed to foster a sense of belonging and emotional connection, further enhancing the overall experience.

Conclusion

CitizenM represents a paradigm shift in the hospitality industry. Our blend of innovative technology, strategic design, and customer-centric model has redefined the concept of affordable luxury. By focusing on the modern traveler, we've built a brand that resonates deeply with our customers, maintaining high occupancy rates and cultivating loyalty. The scalability and adaptability of our business model ensure that we are well-positioned for future growth. In the crowded landscape of hospitality, citizenM stands out as an exemplar of how to balance luxury and affordability seamlessly. Our journey, grounded in innovation and reinforced by strategic partnerships, is a testament to our unwavering commitment to transforming the hospitality landscape for the better. For detailed information on our services and to book your next stay, visit [www.citizenm.com](https://www.citizenm.com/). With citizenM, the future of travel is not just affordable—it's extraordinary.