The hospitality sector is changing. In order to gain attention of the travelling community it is required innovation and improvement of the services. This thesis concentrates on the boutique hotels concept, but the special attention is put on the boutique hotel sector in Spain.

This master’s thesis deals with the concept of boutique hotel as one of the innovations in the hospitality industry. There is a lack of scientific sources specifically describing the boutique hotel sector in Spain. Moreover, the knowledge about boutique hotels is perceived by the researcher as confusing, because theories are not coinciding, there are many arguments presented in theories discussing the basic features of boutique hotels. Moreover, there is a general confusion from the demand side, relating the boutique hotel name with boutique as a small shop.

The researcher intents to find patter of the perception between the selected samples of participants that have a personal experience with the hospitality industry in Spain. Based on the studied issue in relation to the problems, the researcher created following research question: What elements characterise the Spanish boutique hotel segment based on the perceptions of tourists to experience of the Spanish hospitality market; with regard to quality of products and services, approach of employees, the hotel design, and experience?

The researcher starts with collection of secondary data, which have already been used for other purposes, including published text, internet articles, or case study materials within the particular framework of research topic. The researcher discusses and compares the theories with connection to the concept of boutique hotels and its specific features and aspect. Furthermore, there is a closer look on elements such as the importance of the customer experience, physical environment, and customer service quality. Also aims to look closer to the question of the important factor of hospitality establishment

The data collection is performed in two stages. The preliminary phase is represented by the content analysis that takes the form of the exploration of TripAdvisor reviews, discussing the experience with boutique hotels in Spain. Through the findings of the content interpretative analysis and presented theory framework, the researcher creates the outline for the interview and its consequent analysis. There are two Skype and six personal semi-structured interviews, conducted with potential visitors of boutique hotels as well as tourists with boutique hotel experience.

The main aim of the researcher is to provide the reader of the master’s thesis with new knowledge and angles on the matter of the boutique hotel concept and bring the patterns of perceptions and understanding about this special and unique segment