Business Models, Target Markets, and a Bad Hotel Day

Spending 2-3 nights a week in hotels somewhere on this planet, I have the opportunity to notice the good, the bad, and the ugly when it comes to lodging. I’m not really that picky when it comes to hotels. Yet last night was one of the ugly’s.

I stumbled into a Los Angeles-area Extended StayAmerica around 11:30pm (1:30am on my internal clock). Turns out Extended StayAmerica staff leave at 11:00pm and don’t return until 7:00am. No worries—there’s a lockbox with my name on it and instructions on how to open it. Inside is my key and I’m off to my room—everything’s cool.

That was the only cool thing about the experience.

As the door to my room cracked open, the unmistakable stench of stale cigarette smoke lingered into the hall. (OK, so I take that back about not being picky. I don’t like smoking rooms, especially when I order non-smoking.)

Strike One.

There’s no one staffing the desk to change the room. I'm stuck.

Strike Two.

No wireless internet and the wired Ethernet in the room didn’t work. Definitely a swing and a miss—Strike Three!

And that was just the first “out”.

A leaky iron. Noisy neighbors who partied past 1:00am. No shampoo in the bathroom. Strike three again, and now I’m worried about what I'll look like the next day.

I haven’t even mentioned the inconvenience of not being able to check out until 7:00am (I had to be on the road before that). Or that the vending machine (where I could buy a small shampoo for $1.50) would only take one $1 bill (the $.50 had to be in change—which I didn’t have). Or that when I called tonight for a copy of my bill to be faxed, the person at the desk told me she couldn’t do that because only a manager has access to such records.

Game over! I'm taking my bat and glove and going home!

I know—I’m whining, but there is a point. I’m guessing Extended StayAmerica is a fine hotel… for the person they’re trying to reach.

Their business model doesn’t target me. According to their website, they are about providing a “quality lodging experience for the growing ranks of travelers who need services and facilities specifically designed for extended stay travel. The company targets large corporate customers with multi-location extended stay needs and affordable nightly and weekly rates.”

I needed a hotel for about six and a half hours, not six to twelve months.

Whining about how bad they are is like complaining there are too many calories and fat grams in the new Monster Thickburger at Hardee’s (Click here for the story at MSNBC. Notice the whining by the health-safety activist).

Hello! If one is worried about one's health one doesn't go to Hardee’s! Any questions?

The same can be said about other businesses. Say, hotels.

I whined yet I was the wrong person at what could be the right hotel for someone else.

Which brings me to you. And me. Whether you’re a business owner or not, our success depends on a customer base of some kind. Here are some questions for your consideration:

• How clear are you on exactly who your target customer really is?


• What are you doing to intentionally attract those customers?


• What’s your plan when a non-target prospect thinks about doing business with you?

Early in the life of my business I could get a call asking, “Andy, do you offer training on __________?” Regardless of what was filled in the blank, my answer was usually, “Oh yes we do!”

Typical new business mistake.

Over time I’ve learned to not go after business that is outside our zone—our target—where we are our best.

Why? Well, like my experience last night, violating this principle could just lead to a disgruntled ex-customer who writes about me in his blog. :)

P.S. I got a kick out of their mission statement, which includes “ensuring an exceptional, memorable ‘home away from home’ experience for our Guests….” Mission accomplished.

P.S. Where do I like to stay? For the record, I'd rather be at home. If I have to be in a hotel, give me one from the Hilton family any day of the week. They understand business travel and get customer service. And they definitely don't leave for home at 11:00pm.

How about you? What's your favorite?

posted by Andy at 11:47 PM