4Hoteliers
SEARCH
SHARE THIS PAGE
NEWSLETTERS
CONTACT US
SUBMIT CONTENT
ADVERTISING
Lodging Brands Proliferation, Extension, Expansion or is it Brands Inflation?
By Joseph Fischer - Exclusive for 4Hoteliers.com
Wednesday, 14th December 2016
 

Exclusive Views: I would like to apologize in advance if some of you find what I wrote here somewhat blunt, maybe even provocative, my intention is to try and make you think 'outside the box' and I hope you will see my points more clearly once you finish reading this.

The recent merger/ takeover of STARWOOD Hotels by Marriott created a global lodging giant comprising of over 30 brands. 

In my home town of Tel-Aviv, we have two hotels less than 100 meters apart. One is the Tel-Aviv Sheraton hotel and the other is the Tel-Aviv Renaissance. 

Similar hotels in style, facilities, physical size, sharing almost identical location, these hotels share the same distribution platform and loyalty programs. 

When one reads the brand description on Wikipedia, it reads: “Renaissance Hotels, Resorts and Suites cater to an upmarket segment of the traveling public”.

On Marriott’s “Explore our Brands” new web page Renaissance is featured as a “Distinctive Premium Brand”;

“Fuel your imagination, and excite your senses with unexpected experiences that go beyond the conventions of business travel.”

Sheraton, on the other hand, is part of the “Classic Premium” group within the Marriott family, defined and described as “Operating in more than 75 countries around the world, this is Starwood’s biggest brand. “Sheraton makes travel easier and more intuitive, so guests can experience more. [It] continues to establish itself as the global hospitality brand of choice”.

Knowing my own home-town of Tel-Aviv and knowing the local lodging market, let me tell you in simple words: it sucks! 

Just ‘Google’ at the reviews of guests who stayed in these 2 properties and you will understand the famous saying that “one suit doesn't fit all…”

Now, if we, being experienced lodging experts, “C Level Exec” are a bit confused, what can we say about our guests " the customers? What about hotel owners who find that their ‘pride and joy’ property, the ‘apple of their eye’ hotel has now been moved, not to say “downgraded” to be only a “Classic Premium” brand”? in competition with next door “Distinctive Premium Brand”?

During the last decade, global lodging groups have been trying to cope with 3 major changes/challenges: 

  • The rise of OTA’s as huge distribution channels
  • The Sharing Economy in the form of the lodging giant Airbnb
  • The huge demographic changes, namely the rise of the Millennials as the world's leading travelers.  

So, what we see in recent times are the growing number of “soft brands”, “collections”.  We are witnessing an exponential rise in M&A activities in the lodging sector.

Global lodging groups buying other lodging groups to supplement their brands portfolios and have bigger distribution powers and stronger loyalty member clubs. 

Everyone is looking to create “local experiences”, to have “local stories” but very few actually succeed in doing that.

It's time to beat this creased branding addiction! Some lodging groups have become ‘brand junkies’ and they need to go into rehab. 

Let's go back to the fundamentals of the human nature.

Let's try to learn from what's happening in the global Geo-Politics. 

In the US Election, a new president was voted to the office running with the slogan “Make America great again”. 

In the U.K., the popular vote chose Brexit against staying in the EU. In Italy, popular vote in the recent referendum voted against reforms and in a way against the EU. Western Europe, Central Europe is seeing more and more Populist parties on the rise, parties that focus on local rather than regional & global issues. 

So, if so many people around the world want to break away from geographical and political “Unions”, are we in the global lodging industry moving against the global trend?

I am aware that what I am writing here isn't conventional, and that some of you might consider it to be radical or plainly crazy, but let me ask you this; 

A year ago, would you have believed me if I were to tell you that Donald J. Trump would be elected as president of the U.S. and that the U.K. vote to leave the EU? 

My conclusions in a nutshell: 

There are clearly far too many hotel brands around the globe without a clear ‘brand story’ and clear cut definitions

Instead of trying to create ‘global brands’, go local! Some global lodging groups are doing just that " Accor, for example

By focusing just on the growth of the Millennial generations, we tend to forget and neglect the “Baby Boomers” generations who are probably the richest generation in the world's history that also has more time to travel, now when their children are all grown-up

Don't try to copy, imitate and run after what the “big boys” are doing. Just remember that “big boys” tend to make bigger mistakes…

Before extending your brand to lower categories, residences, long-stay, suites - check to see if your core brand won't be deluded. 

Let's discuss my writing frankly & openly.

Joseph - Yossi - Fischer the CEO of Vision Hospitality & Travel - international lodging & Travel Solutions

This is strictly an exclusive feature, reprints of this article in any shape or form without prior written approval from 4Hoteliers.com is not permitted.

Global Brand Awareness & Marketing Tools at 4Hoteliers.com ...[Click for More]
 Latest News  (Click title to read article)




 Latest Articles  (Click title to read)




 Most Read Articles  (Click title to read)




~ Important Notice ~
Articles appearing on 4Hoteliers contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.
© Copyright 4Hoteliers 2001-2024 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here
Use of this web site is subject to our
terms & conditions of service and privacy policy