Wine tourism

Given fierce competition in the wine industry, tourism seems to be one of solutions to overcome the challenges and expedite sales of winery. People who are interested in wine come to the winery, learn about the different wines, and enjoy wines in the place where wines are made.

Among the many choice of wine tours, how winery differentiate themselves from others?

Marques de Rsical Rioja hotel located in the center of Rioja Alavesa region Spain could be one example to successfully create multi-cultural spaces to meet the needs of wine lover. 

Marques de Riscal opened in 2006, and the hotel was designed and built by Frank O. Gehry, one of the world’s most renowned architects and author of works of art in the Guggenheim Museum in Bilbao. The hotel’s amazing curves, titanium roof and asymmetry of walls provide a great balance with historic wine cellars. The hotel has 43 luxury rooms and suites, each unique and different in their shapes and offered views. The hotel provides multiple services including food by Michelin star chef, bar/rooftop lounge, library including more than 1,000 wine books, and experience of wine production from old to new technologies.

One interesting thing about this luxury hotel is that the hotel is invested and run by Starwood group. Considering large required up-front investment to building wine tour facilities including hotel and restaurants, what about strategic alliance with hotel industry? It is not a simple as the statement, but it doesn't have to be always luxury as Marques de Riscal.   

Quality over Choice: The In-N-Out Story

During our discussion on consumer choice last Friday, the point was made that producers or goods will have higher perceived quality if they make a broader range of that good. For example, a chocolatier that makes 25 different types of chocolate will have a higher perceived quality than a chocolatier that only makes 5 different types. To me, this made sense and I was able to think of a number of examples that fit this mold.

But what about In-N-Out? Among those knowledgeable about such things, In-N-Out burgers are the best of any fast-food chain in the world (sorry Five Guys, Shake Shack, and Whataburger). However, In-N-Out has a smaller menu than an artisanal farm-to-table restaurant. The In-N-Out menu, excluding the special menu for elite In-N-Out connoisseur, offers three types of burgers that vary only by number of burger patties and cheese slices, fries, shakes, soda, milk, and coffee. That's not much choice!

Somehow, despite its limited selection, In-N-Out maintains the highest perceived quality in the industry, as reported by 90% of Californians. How have they been able to achieve this? Is there value in specialization? Does this laser-focus on quality only work in an industry filled with low quality producers? All I know is, I'd like a #1, please. Yes, with onions.