In a world of increasingly ‘investor centric’ ownership and ‘franchised’ hotels there is great potential to ensure consistency in client service, offering, customer experience and branding. As well as offering the opportunity to hotel owners to raise more investment to develop the hotel, than they could possible achieve if they remain an independent hotel owner.
But does overly centralised control over communication and generic branded marketing miss opportunities to generate revenues to the bottom line, that are present from a localised marketing strategy?
UK 2019 TREND FORECAST FOR HOTELS | HOSPITALITY SECTOR
“Our revised forecast for UK hotels in 2019 anticipates slower growth reflecting softer economic and demand trends and the impact of high levels of new hotel room additions, particularly in London but also in other UK cities. While the weak pound continues to support inbound leisure travel, protracted negotiations around Brexit are not helping business travel” (Source: PWC, September 2018)
Whilst not a gloomy forecast with City based hotel occupancy forecasted at an average of 82%, the more concerning factor is the forecast for revenues / room:
What Customers Want Is Not Always “One Size Fits All”
For some customers the assurance of a branded hotel experience is reassuring, particularly for business customers who travel from one city to another. They need to know that after a long trip they will get wifi, great food, clean rooms, a comfortable bed and perhaps a spa or pool to unwind. A renowned, branded hotel, gives this assurance and cross-border loyalty schemes help to underpin this.
In this scenario the choices are likely to be pretty much functional, base requirements that need fulfilling, a means to an end. More likely to be price driven, consistency or at best a brand driven choice, fulfilled on Hotel.com or other 3rd party booking site (with the inherent hit on room rate margins).
However, in this simplistic scenario, it does not reflect the deeper and diverse needs of many business people nor the general public who are looking to book a hotel. Guests needs are far more complex and may for example include requirements for entertaining and impressing guests from overseas, proximity to local attractions or a scenic location to unwind.
A more unique hotel ambience, often seen in the independent hotel sector and personal service can be major draws for discerning customers.
If Nike Opened An Amazing Hotel
Seth Godin has his view on the use of where branded hotels may need to divert from the ‘core messages’ and associated communications. Given as a comparison to Nike the mass marketing sportswear brand (watch video below):
