Types of Lobbies In a Hotel and How They Use It For Revenues

Anyone who knows anything about people and how the human psyche works will tell you that we are consumers. Humans have an unfortunate disease that corporations feed on and that is consumerism.

But first, let’s start at the beginning and find out more about our relationships with hotels and their lobbies.

Hospitality has been around since 1800BC, possibly even before that. The ancients had documents of “tavern keeping” and stock sheets of ale. How has the scope of what a lobby is, changed? How has hospitality evolved? Today we will look at:

  • What Is a Lobby?
  • Types of Lobbies in a Hotel and How they Use It for Revenue?
  • How Much Revenue Are We Talking About?
  • Why Are Lobbies Important for Revenue?

What Is a Lobby?

At the very heart of every hotel lies that unexpected hug you never knew you wanted. A place where you can stock up on provisions, interact and socialize, and of course, it’s a place for the hotel to promote its brand and make additional revenue through commerce.

Your experience will certainly differ depending on where you decide to stay. It’s expected that top-tier hotels are much stricter concerning standards and expectations. In this article, we will cover the most predominant and luxurious hotels.

What Is the Goal of The Lobby?

Lately, the idea of the lobby has been evolving and growing as the generations go by. In the past, you were met with a concierge, shown around the hotel, and booked into your room. Today, we are more social, and more people from all income groups can stay in hotels.

The lobby has grown from a place of order and gathering to a place of service, convenience, and luxury. The hotel industry has figured out how to promote their lobbies in a way that they can generate more revenue. Not only from bookings but from chandlery as well.

What Amenities Do Lobbies Offer?

Hotel lobbies have changed in the sense that the last thing the industry wants now, is for you to be in your room. Back in the day, the goal of the lobby was to get you through the door and to your room as smoothly and hassle-free as possible. Today, it’s all about comfort and accessibility.

Some hotels offer pools, spas, gyms, kiosks, cafés, and bars. Their friendly staff makes you feel right at home. Of course, you’re going to want another drink and chat with your newly made friends.

The furniture and comfort in lobbies have also changed significantly. From old, vintage uncomfortable armchairs to seats and sofas, lounge chairs, and the most comfortable bar stools.

Types of Lobbies in a Hotel and How They Use It for Revenue

Below are three examples of how hotels use different designs and services to facilitate their revenue and ensure that profit will be made. A lot of planning and thinking goes into building hotels. Location, demographics, science, and even psychology play a role in the development of hotels and their franchises.

Types Of Lobbies

How They are Used For Revenues.

Open-Air Lobby Location is a very important aspect of having an open-air lobby. Some hotels are perfectly situated, and an open-air lobby is ideal to boost their revenue. These hotels are usually situated near rivers, beaches, or mountainsides.

The chances of a bar or socializing area in this lobby are certain. The hospitality sector knows exactly where our weak points lie, and how to entice us with an unforgettable experience. You came there to spend money and have a great time. Why should you look for a good time if you just walked into one?!

It’s scientifically proven that when a consumer i.e., you, has their senses stimulated, they will spend more money. Just imagine, a massage right next to the most beautiful tropical scenery you’ve ever seen in your life. Money isn’t a problem when you are in heaven.

Semi-Outdoor Lobby Very similar to the open-air lobby, this type of lobby also offers you majestic views, delicious finger snacks, and cocktails to die for. Taking the above-mentioned fact into consideration, you are much more likely to spend money when you are in a state of relaxation and bliss.

It seems even if for a moment that life isn’t so bad, and you can actually afford to buy that, or you can justify spending your money more easily. The hospitality industry lives off of making you feel a certain way, literally.

The better you feel, the better your experience, and the more revenue for them. That is why you will always see people around you on standby for whatever you want. A massage, back rub, more cocktails? Anything you want.

Grand Lobby Another great tactic the hospitality industry uses is drowning the customer in lux and luscious indulgences. Usually more focused on providing you with immaculate service, these hotels offer you the best of the best. At a price of course.

Spa treatments, gourmet breakfasts, lunches, and dinners. Imported wines and cheeses. Room service, some even provide you with your own personal butler. The way hotels use this lobby for revenue is by blinding you with acts of service. You feel like a God, or a king, so you spend like one. Nothing is too expensive.

 

If you look at any sector really, they all know exactly where our buttons are and which buttons to turn in order for them to grow their revenue. At the end of the day, the experience you have is never just for you. It’s for your social media audience who like the pics you shared, it’s for your family and friends with whom you shared all your amazing memories.

Let’s take a look at some remarkable hotels and their yearly revenue to give you an idea of the numbers. Of course, not all the revenue is made from the lobby. The main idea portrayed is that the lobby is the first taste of what you could get, almost like the apple that was offered to Eve.

How Much Revenue Are We Talking?

Emirates Palace Marina, Abu Dhabi.

One of the most luxurious, expensive, grandiose hotels in the world. It cost a whopping $3 Billion to build which makes it the third most expensive hotel ever built in the world. Taking into consideration reports from 2017, the hotel’s occupancy rate was at 75%. With rooms starting at $50 per night and going up to $14,500 per night. In November 2016, the chain reached AED624 Million in revenue, which is $1.5 Billion and that is just the average estimate based on paid rooms only.

Atlantis Paradise Island, Bahamas.

One of the most breathtaking places certainly would be quite hard to describe. It has its own golf course, predator lagoon, rapids, waterfalls and so much more. With over 3000 rooms this iconic place had to be on the list. The Atlantis Paradise Island is part of a 1577 family of companies and raked in a ridiculous $208.21 Million (USD) in sales.

Burj Al Arab, Dubai.

With 28 double-story floors and only suites available, prices start at $1000 – $1200 (USD) and can stretch up to $24,000 per night. Each interior is gilded with 24-carat gold. It’s clear that a lot of money, blood, sweat, and tears were spent on making this breathtaking place a reality. In 2020, it saw a $768 Million in Net Profit, 58 percent down from the year before. COVID-19 has had a devastating effect on us all.

Why Are Lobbies Important For Revenue?

Well, think of the lobby as the heart of the hotel. In the hospitality industry, the heart is used to cause an extremely powerful impact on your psyche as you place your first steps through their gold-gilded doors.

From the moment you arrive until long after you are gone the experience stays with you and almost places you in a trance of utter bliss and yearning to stay. That is why so much thought, time, and money is poured into creating the most incredulous first impressions of your life.

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