Harnessing Business Engineering to Redefine Lilac Hotels Growth and Distribution Strategy

Is a hotel's brand positioning more about business engineering or market positioning? Last week’s brainstorming session at the office focused on how the growth strategy for www.Lilachotels.com lies at the intersection of customer centricity and strategic innovation—both of which are key to driving business growth.

As a young brand, Lilac faces a pivotal decision in determining how to position itself in a way that not only nurtures customer loyalty but also optimizes distribution, shared services, turnover, and bottom-line profits. Several insights and lessons can be applied to shape Lilac Hotels' future direction.

Customer Obsession as a Growth Driver

One of the key pillars of business engineering is a customer-obsessed approach, which prioritizes understanding and addressing unarticulated customer needs. Lilac’s focus on building a "Lilac Family" mirrors this philosophy by centering on personalized experiences rather than standardized products. This method not only creates strong customer loyalty but also fosters long-term relationships that drive repeat business and customer lifetime value. By making customers the core of every decision, Lilac can expand into diverse markets, including resort and city locations, offering tailored experiences that resonate deeply its target audience.

Non-Linear Growth Through Strategic Distribution

Markets often evolve in non-linear ways. By focusing on customer experiences that adapt to the context of each location (whether it’s a resort or urban setting), Lilac Hotels can differentiate itself from competitors that offer cookie-cutter properties. This flexible approach enables Lilac to penetrate different markets more effectively, expanding our distribution network and maximizing turnover. Instead of adhering to rigid standards, the brand can craft offerings that cater to varied customer preferences, making it appealing to a broader market.

Balancing Incremental and Breakthrough Approaches

The idea is to decide between incremental improvements in our growth strategy as opposed to going cookie cutter. A commercial engineering mindset advocates for a dynamic approach—continuously testing business models while also pursuing disruptive changes when the market demands it.

For Lilac, this means incrementally improving service and guest experiences at city properties while taking bold steps with resort locations by leveraging our "resort DNA" from Tamara. This approach would allow Lilac to stay agile, adapt to changing market conditions, and capture new opportunities in both established and emerging markets.