This analyzes the unconventional business strategy of fav Hotel, which achieved profitability with a seemingly disastrous 20% occupancy rate by challenging traditional hotel industry assumptions.
This approach, termed "Bias Break," involved rejecting the fixed ideas that high occupancy and extensive service are necessary for success. It explains how fav Hotel employed a strategy of subtraction, clearly defining what services they would not offer—such as daily cleaning and full front desk staff—to concentrate resources on a specialized target of group and family travelers.
This model is underpinned by a "Critical Core," a factor that appears irrational (low occupancy) but is made highly rational by significant cost reductions through digital technology, staff minimization, and a unique development process that accelerates expansion through land sales to investment funds.
