Virgin Hotels minibars and the Street Pricing

Virgin Hotels have associated their name with exclusive benefits. John Protopapadakis writes about their street pricing in terms of minibars.

Virgin Hotels is a hotel brand created by Sir Richard Branson’s Virgin Group that was officially launched in 2010.

They invite guests to discover the benefits of exclusivity with a charm and authenticity that’s open to all.

This mentality is summarized in their motto ” Your place in the city“.

Virgin Hotels have associated their name with exclusive benefits. John Protopapadakis writes about their street pricing in terms of minibars. — **Virgin Hotels** have associated their name with exclusive benefits. **John Protopapadakis** writes about their **street pricing** in terms of **minibars**.

To keep customers happy and make staff life easier by reducing friction with complaining guests, Virgin Hotels has adopted a street pricing policy in terms of minibars.

When their first hotel in Chicago was opened up in 2015, their philosophy was, unlike all other hotels that consider anything as a significant source of revenue, not to “empty the visitor’s wallet” with hidden and unfair charges as well as overpricing.

Since then, the hotel has not charged any fees for early departures, late checkouts and upgraded Wi-Fi.

The same policy was adopted for the use of minibars, where the prices would not differ from those of the nearby local stores.

In fact, in order to be fully harmonized with the prices of the other stores, the F&B Manager, “armed” himself with a pencil and a notebook, recorded the real prices in the supermarkets and retail stores in the area.

Indicatively, we quote the prices of various items that one encounters in Virgin Hotels minibars:

Kettle Chips – $ 1.50
Snickers/ Κit Kat / M & M’s – $ 1.00
Clif Bar / Kind Bar – $ 2.25 Coke
Diet Coke – $ 1.00 Red Bull
Voss / San Pellegrino – $ 2.00
Coconut Water – $ 2.75

As the Hotel Management quotes:

“The minibar is extremely useful for guests, who, however, are accustomed to paying exorbitant prices for a bar of chocolate or a bottle of water. But we, in Virgin Hotels, do not aim to make a profit from it. It is enough for us that our visitors will leave and will be satisfied.
Virgin Hotels minibars and the Street Pricing

It is worth noting, that more and more visitors regularly purchase products from the minibar.

In fact, the Virgin Hotel has launched a program for regular visitors, who, having access to it, will find products matching their shopping record or have been suggested by them (e.g a specific brand of bottled water ).

In this way, the hotel “removes” a possible source of dissatisfaction by laying the foundation to enhance customers loyalty, many of whom mention minibars’ low prices in their dithyrambic reviews.

The property’s profitability, as well as the one of Las Vegas, which opened its doors a few weeks ago, comes mainly from the rooms ( with prices being a bit higher than their competitors) and Food and Drinks sales, which are outperformed, due to the horde of loyal customers.

Article's Source: Marketing Tips

About the Author

John Protopapadakis is Author, Professor and Seminars Lecturer about Marketing, Quality Service and Complaint Management.

He studied Business Administration at the University of Piraeus and holds an MBA (Master of Business Administration) from Cleveland State University.

He has worked in the Marketing department of Misko-Barilla. Since 2000 until presently, he is Professor of Marketing and Quality Service, at Le Monde .

He is partner of the startup company, Hoteltraining.

On his website, Marketing Tips, John Protopapadakis, shares content about Marketing, Public Relations and Customer Service.

In his prolific career as an author, several books stand out such as: