Using Pixel Hotel idea for entrepreneurship

Can we own a hotel or start hotel business with our limited money? You may think that the answer is no. But, I would say Yes, and you will probably agree with me if you take a closer look at pixel hotel business idea in Austria.

Pixel hotel is a new form of hotel business which I recently learned while studying tourism destination marketing course. I got so interest to this idea that, I wanted to learn more about this and share my thoughts.

Whenever we think about a hotel, what usually comes to our mind? A nice tall building with lot of rooms in different floors with many other facilities. But, Pixel hotel is just the opposite. “The city is the hotel” which is the slogan of pixel hotel and it works like that. This new idea of hospitality industry came into existence in 2006. The idea originated from a concept made by a group of young architects and designers in Linz, Austria.

Pixel hotel is a cultural enterprise in Linz, with the aim of giving guests a direct experience of unusual accommodation with certain particularities. Another aim of this association is to utilize unused properties in urban and rural areas in profitable way. This also gives an opportunity to their guests to stay close to their travel destination. Hence, tourists get more time to travel. Targeted tourists are those people, who love watching things a bit slower and bit closer. As an accommodation project, it has become an international recognized brand which was cited as an example of innovative tourism in 2009. Rooms of pixel hotel are scattered in whole city which can be an old building, workshop or basically anything which can be used as accommodation.

Picture of the first prototype Pixel Hotel which was in an empty garage.

Similarly, for pixel guests, there is not any certain restaurant to offer lunch and dinner. Rather guests are invited to discover the local food and culture and to know the story of that place.

In my opinion, this is a very nice business idea to learn from. This idea can be utilized to start hotel business with very little money and with minimum preparation. Another competitor in the market is Airbnb, but people who rent apartment there usually own only one apartment and that is not their main source of income. On the other hand, an establish hotel is always more reliable to the guests and more profitable.

How Pixel hotel idea can be utilized in Finland

Finland is a big country with very little population. Most of the tourists’ services like hotels and transportation facilities are available mainly in big cities and in the center areas. So, when tourists visit Finland, they tend to stay in those places which are close to their hotel and where public transport are available. Because of this, attractions in small towns and places remain unknown and undiscovered by most of the tourists. But, we can utilize pixel hotel idea here to arrange accommodation and other facilities for the tourists in all over the country, then it may appear as an attractive tourists’ service for those who will plan to visit Finland in future.

Idea: A simple house can be used as a hotel

Moreover, there are many empty houses and apartments in every cities and towns which are ready to use or with little arrangements can be made ready to rent to make money. People can use this idea to start their own business with a limited money and minimum risk.

Source: http://www.pixelhotel.at/index.php?id=1&L=0

From Marketing Strategy to Values Strategy

Having been processing the concept of marketing strategy during the ongoing autumn due to our course on destination marketing, the concept of strategy has been wandering in my mind. What does it actually mean and how important is it for a (tourism) company?

Applying the concept of strategy

In his book Valonöörin käsikirja (A lightneer’s guide) Frank Martela poses the questions What are our goals, what things are worth doing? and What can we do to reach our goals? as the central questions about the human life. He also points out that too often we do things that we didn’t actively choose to do. Too often we spend time on social media or Netflix though our goal is to do sports and be physically in a good condition. Or maybe we feel pressure to do certain things or maybe we just accept them because that’s how people always have done them. I think these questions and thoughts can be applied to business strategies as well.

During our course on marketing it was highlighted how important the mission, vision and values of the company are when creating a strategy. Another author and teacher Jim Collins reveals in his book Good to Great ways to develop a good company into a great one, based on a broad research. One of the core findings is to first find the right people around you, to keep them around you and then to “figure out the best path to greatness”. Also because with the right people you can more easily face changes in the changing world: “if people are on the bus because of who else is on the bus, then  it’s much easier to change direction”. This can also be seen as a value-based approach: when there’s a group of people who share the same values and hopefully the same mission, it’s easier to set the direction.

Getting the right people on the bus (although the bus might need to be repaired along the way).

 

 

 

Don’t get stuck to the word: it’s about the content

Wikipedia, tells that the word ‘strategy’ derives from the Greek word stratēgia and the original meaning would be something like “art of troop leader, office of general, command, generalship” and that a strategy is a “high level plan to achieve one or more goals under conditions of uncertainty”. The other week I also had the chance to hear some thoughts about marketing from Timo Kiuru, who works as a creative director for different companies. In his opinion the term ‘strategy’ shouldn’t be used at all. He still stressed the importance of values and to on a weekly basis check if you have been acting according to your values.

It was a very inspiring speech and I also agree that we shouldn’t get too stuck to the word itself or think that if there’s some kind of a strategy, everything will fall into places. The importance of the content of the strategy, the goals and actions have to also be highlighted: a strategy is no use if it’s not concrete, applicable and if it’s not applied. For a company it’s quite essential to define some sort of a strategy. If there is a high level plan with at least some values or core thoughts that are important and/or motivating  it can’t go very wrong. Also, possible changes in the plan don’t necessarily mean it was wrong in the first place.

Setting a direction.

Management by wellbeing

Mindfulness, victorious corporate culture, growth rates that the board cannot accept, going to the gym with your bosses, hiring a personal business coach, fighting loneliness… does not sound like a traditional Finnish management style, does it? In one company it is.

Managing corporate culture and people at SMT

Our Tourism Marketing and Management Programme had the privilege to have CEO of travel and event agency SMT Kirsi Paakkari as a guest speaker to discuss with us about managing corporate culture and people in a way that enables a tourism business to grow.

tourism business management
Kirsi Paakkari discussing corporate culture in tourism

She has successfully merged two ill-performing businesses into a victorious one in a shrinking market, not an easy feat at all. It requires a lot from a manager to change the direction of a business and reach double-digit growth rates. Sometimes traditional Finnish management by perkele (traditional Finnish curse word) style might just not do it. Managers make many choices that define company performance.

Focus on employees management

Kirsi has clearly chosen to focus on the employees of the company. It was great to see how she monitors and leads the wellbeing of her people. She is also managing her company with metrics and data as much as possible while still listening to people. This might be the only way to reach her goal, which is to make SMT the best service company in Finland. This goal is also dependent on trust. Leadership requires trust in many forms. Employees have to trust their leaders and trust in the future of the company. In addition, the manager has to trust the employees, why hire people you cannot trust?

tourism marketing and management
Management education for students

Our student Lari Turunen appreciated how Kirsi decided to bring new people from outside the industry to create new ideas for the company. Lari also noted that when you are building a new culture for a company you have to invest in it. Mergers should not be only about saving money and making companies more efficient but they should also be seen as an opportunity to start anew.

Management by employee wellbeing is similar to human sigma management and has a sound basis in academic literature. There are many challenges ahead for SMT as they integrate with American Express Global Business and are more and more focusing on a growing event market. It will be interesting to see how the company manages these changes and how management by wellbeing works in the future. Could it be the direction of future leadership in Finland or even globally?