Can there really be endless salami-sliced segmentation where each brand can differentiate and stand out from the competition?.
Hotels are a parity-led product: every hotel has a lobby, comfortable rooms, and enticing restaurants. If your only point of difference is a nice new bed, you will not make a significant brand impact and will quickly find yourself in a price war to the bottom.
Our OTA partners cluster us all by location, star rating, and price. Their profiles reduce each hotel to a list of room items – 28sqm, hairdryer, aircon, amenities, and so on. In this environment, brand differentiation is lost.
Our challenge is to outthink rather than outspend our competition in attracting guests to an exciting, differentiated hotel offering, removing ourselves from a discounted price war.
The solution lies in brand-led innovation that guides differentiation in product, service, and communication. It should serve as the springboard for innovation in facilities, F&B, guest services, and experiences that all come together to support the brand story itself. With a clearly articulated brand positioning and a focused target audience, you can attract more guests because they are fans of what you are offering and are not solely focused on price.
We have recently launched our new brand 'Kaura.' It is a perfect example of a quality, differentiated brand. Kaura Bali is an immersive village retreat that combines comfort with sustainability and cultural discovery, nestled in the jungle-clad hills of Manggis, East Bali.
The retreat offers a range of community-led activities that provide a unique window into the local Balinese life and spirit. It is more than just a place to sleep; it offers a culturally immersive village experience. Not your usual hotel offering. We’re already booked out months in advance.
It is tempting to chase every trend in the market. We all have our core #brands that are successful and attract clients to our property portfolios. These brands have fundamental properties that we have defined and cherished. We must not stray too far from these, but we must adapt or die. Some trends can and should be absorbed into an existing brand if they don't compromise its core attributes.
When we see a new opportunity in the market, we need to think long and hard before considering an extension or turning to a new brand...
Now, I'm going to put it out there – #hospitality companies have been too hasty in creating brands.
I can hear the collective industry gasp in horror! But consider this: if our industry partners can't differentiate between our brands, how can we expect guests to even care to try?
As I have advocated before, 'Follow your True North.' If an opportunity is not in tune with the fundamental #purpose of your company, then be #bold enough to let it pass you by.
I am not arguing against all new brands or brand extensions. I argue that they must capture a genuine, differentiated opportunity to deliver something new to your guests. What we need are not just new brands, but unique brands that clearly describe differentiated offerings with strong positioning, recognizing the developing trends in the marketplace.
Harry Thaliwal
Chief Executive Officer at Cross Hotels & Resorts
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