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Hotel Brand Strategy: Contemporary Issues In The Hotel Industry

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Question:

Describe about the Contemporary Issues in the Hotel Industry?
 
 

Answer:

Introduction

Now days, Dens & De Pelsmacker (2010) commented on the fact that with the development of hospitality industry, the hotel industry have becomes very much conscious and pioneer about branding. It is a belief that more the branding strategy will be strong; the brand image of the hotel will be good and will occupy a good position in the market. In addition to this Go & Govers (2010) had a view that the hotel industry also gives a good focus on the hospitality and service provided to the customers and also stays focused regarding the quality of the service provided to the customers. Customer satisfaction is another important issue that the hotel industry is focused on as it considered to be the most important one.

1) Identified assumptions that are made

According to Ling, Guo & He (2012) the implicit assumptions that the made in this context regarding the hotel industry are-

Assumption 1: awareness regarding the brand- The hotel needs to be focused regarding the brand consciousness and also need to act accordingly.

Assumption 2: overall customer satisfaction- The hotel industry also needs to satisfy the customers for the overall progression and growth.

Assumption 3: increasing market share- The hotel industry through customer satisfaction and up-graded performance needs to increase the market share to a considerable amount.

Assumption 4: brand loyalty- The hotel works in the most progressive way to increase the brand loyalty of the hotel.

Assumption 5: quality awareness- The hotel industry is always focused towards the quality for providing sufficient satisfaction to the customers.

 In addition to this, the explicit assumptions that are made in this context are-

Assumption 6:  the relationship between hotel brands and guests- The hotel industry focuses towards the relationship between guests and hotel brands.

Assumption 7: extension of brand- The hotel industry in order to extend the brand needs to give a full satisfaction to the customers.

Assumption 8: relationship between franchising and hotel branding – There exists a firm relationship between hotel branding and franchising in order to rescale the financial effect on the hotel.

Assumption 9: customer’s decision regarding the choice of hotels- For having the customers the hotel industry has to outperform in order to mould the customer’s decision towards the specific hotels.

Assumption 10: value created by branding- The hotel industry focuses on the value that is created through branding.

O'Neill, J. (2004) commented regarding the fact that these assumptions thus made in this article are entirely done to make the readers understand the strategy that the hotel undertakes to improve the brand image and capture a huge market position in this competitive environment. This article clearly identifies both the implicit and explicit assumptions that are made in this context that helps the readers in better understanding of the topic.

 

2) Challenges towards the assumptions that are made

The assumptions that are made in this context are sufficient and there is no point of challenging the assumptions. Below are the points that support the claims.

According to O'Neill & Mattila (2009) it is clearly illustrated that the hotel industry are very much conscious about the overall branding. This is because depending on the branding, the brand image of the company is also highly affected.

The hotel industry works hard for providing an overall satisfaction to the customers that also leads to the increased market share as well as loyalty of the customers towards the brand. In addition to this, Enz (2010) had a view that the hotel industry also is highly focused on the relationship between the hotel branding and the customers along with franchising and brands of the hotel.

The hotel industry provides a good service to the customers and is also concerned with the overall satisfaction level on the customers since this affects the decision of the customers regarding the choice of the hotels.

Moreover, Ling, Guo & He (2012) also commented that the more the hotel will be satisfying the customers, the more it will have a potential growth and hence its market share will be increasing to a considerate rate. This will lead to the opening of new franchises that will also increase the brand image of the hotel and hence the hotel will be extended globally.

3) Explanation of the logical reasoning

The assumptions that are made have a comprehensive explanation that will be supporting the article to a considerable extent.

According to Go & Govers (2010) it is a necessity of the hotel industry to look after the customer satisfaction and provide the customers with excellent services regarding all kind of issues. This satisfaction to the customers enhances the relationship between the hotel industry and the customers.

As a result, Dens & De Pelsmacker (2010) had commented that this creates a good bonding between the potential customers and the hotel industry. The customers in return recommend the hotel to their relatives, friends and colleagues through word of mouth and also write excellent reviews regarding the services of the hotel that ultimately affects the brand image and value of the hotel to the maximum.

O'Neill & Mattila (2009) commented on the fact that the factors that satisfy the customers and increase the value of the hotel are their excellent services, cleanliness in the hotel rooms, maintenance of the hotel, friendliness of the employees. Apart from this the knowledge of the employees regarding the services and attending the guests also affects the brand image of the hotel.

In addition to this, Cunill (2006) had a view that more the hotel will be serving the customers and satisfying them, the more they will be collecting the revenues that will lead to the expansion and extension of the hotel industry. This will help the hotels to open new franchises that will attract more customers and will also provide services to them for having a good brand image.

Moreover, De Mooij & Hofstede (2010) commented on the fact that the services of the customers also affect the decision making process of the customers that directly affects the brand value of the hotels. It is to be remembered that the consumers are always biased towards those hotels and brands that are having a good market share, a good brand name and value.

Moreover, Sturman, Corgel & Verma (2011) also commented that the service that is provided by the hotels to the customers also affects the market share of the hotel.

 

4) Identifying evidence that are presented for assertions

According to O'Neill & Mattila (2009) this article have strong, clear and complete evidences regarding the assertions that are made in this article regarding the hotel brand strategy.

The hotel brand and the customers have a very strong relationship between them along with a good relationship between franchising and hotel branding. Ling, Guo & He (2012) commented that in this article that the lenders are much more comfortable towards a branded hotel rather than other hotels.

 This helps the lenders in incorporating tight financial formulas and laws for lending out money. For lending the money, Go & Govers (2010) had a view that the owners also need to scrutinize the portfolio of a firm for incorporating the branding strategies that are most suitable to the property of the owners.

For extending the brand image and attracting more customers the hotel industry plays a pivotal role and also is multi- disciple for serving the customers according to their travel reasons. Dens & De Pelsmacker (2010) commented that there are several customers those are travelling during several purposes and trusts of the brands of the hotel regarding their services.

The more the customers will be satisfied through the services; the brand image of the hotel industry will flourish in this competitive market. The customers through various sources such as websites and word of mouth understands the hospitality and customer services of the hotels and based on it the chooses the hotels.

Another factor that affects the value of the brand of the hotel industry is the word of mouth of the customers. It is a very essential and strong marketing strategy that helps the hotel in gaining a huge customer database and also helps it to get extended globally for serving the customers. Cunill (2006) had an opinion that the brand extension of the hotel also helps in getting a financial advantage and collecting higher revenues. In addition to this, the familiar and popular brands also get an added advantage in collecting higher revenues and savings from the market.

5) Explanation of the evidence if necessary

In this section, the above mentioned evidences that are mentioned are clearly described and explained for the ease of the customers. De Mooij & Hofstede (2010) commented on the fact that the customers decision also depends on the services of the hotel to the customers according to their needs and requirements. The cleanliness regarding the hotel rooms, the attitude of the employees towards the customers and their treatment also affects the customer retention and satisfaction. According to Herskovitz & Crystal (2010) the hotels will be getting more branding and value once they will be satisfying the customers and retaining those customers in future. Moreover, this will also help in getting a strong word of mouth from the customers that will also increase their brand value and image that will also help in occupying a good image among the competitive market.

In addition to this, Ling, Guo & He (2012) commented on the fact that the hotels need to have a good brand image in the eyes of the customers by providing them with all the luxuries and services that they claim to give their guests. It is important to remember that the more the hotels will excel in delivering excellent services to the customers, the more the hotel will be gaining competitive advantage over other branded hotels. Go & Govers (2010) also had a view that maintaining good relationship with the customers also benefits the hotel in gaining the old customers as well as new customers. Depending on the quality of the services and attending the guests and keeping the rooms and other sections of the hotel clean, the relationship between the customers and the hotel also gets improved. Apart from this, O'Neill & Mattila (2009) also had an opinion that on the basis of branding and retention of the customers, the brand loyalty of the hotel depends. More the customers will be loyal with the hotel, the brand value will be increased that will definitely affect the market share of the hotel.

 

6) Explanation of whose interests and what interests are served by the assertions made by author

In this article the assertions that the author has made serves the interest of both the customers and the hotel industry. According to Cunill (2006) the relationship between the hotel industry and customers are closely kitted with each other and are strongly dependent on one another. The brand value of the hotel strongly depends on the services provided to the customers and the loyalty of the customers in return. Moreover, Dens & De Pelsmacker (2010) commented on the fact that the interest and aim of the hotel industry is to gain maximum number of the customers, brand value as well as revenues that are essential for extension of the hotel industry in this highly competitive market edge. In order to fulfill the interest of the hotels for gaining a good name and revenues, the hotel industry tries their maximum level in satisfying the customers with their service quality and friendliness.

In addition to this, Enz (2010) had a view regarding this is that the interest of the customers are also served by the branded hotels.  The customers travel from one place to another place and book a branded hotel for staying safe and getting the services properly as well as in time on the basis of their requirements. Apart from this, Ling, Guo & He (2012) also had a saying regarding the interests of the customers is that the customers favor those hotels that already have a name, brand value and a good image in the market. The loyalty of the customers stays biased with these hotels with a god brand image and value. This fulfills the interests of the customers by getting a good and a quality service from these hotels.

7) Explanation of the values that underpin the reasoning

The article have enough and comprehensive explanation that strengthens and supports the value that are mentioned over here. According to Go & Govers (2010) the hotel industry gains more brand loyalty from the customers by providing excellent services to them. This also helps them in retaining the customers that also helps in getting increased services that also help the hotel industry in gaining revenues and higher customer database. The customers also in return stay loyal to those hotels that provide them with the best services and stand up to their needs and requirements. O'Neill & Mattila (2009) commented on the reality that the guest satisfaction now days have become one of the important factors for collecting the revenues that will be helping in determining the success of the hotel industry.

Enz (2010) had an opinion that depending on the satisfaction of the guests the brand image and collection of the revenues are dependent on. In order to have a steady growth of the hotel, it is essential for the hotel to hold back its image by providing a good service to the customers and satisfying the guests according to the requirement. This helps the hotel to get extended globally for serving the customers and satisfying them. According to Dens & De Pelsmacker (2010) the satisfaction level of the customers determines the repeat visits of the customers to those hotels. In addition to this, the friendliness of the employees and their service along with the maintenance of the hotels and rooms also support the evidences to retain back the customers.

8) Explanation the implications of the conclusion

In order to hold up the image of the hotel and its brand value O'Neill (2004) commented on the fact that the hotel industry needs to focus on the customer service and satisfaction of the customers. This article well explains the ways to hold up the brand image of the hotel industry as well as retain the customers and maintain a good relationship with the customers. The hotel industry apart from servicing the customers also needs to concentrate on the expansion and extension of the business. This is done if the hotel will be having a good brand image and value. Moreover, Go & Govers (2010) had a view that the easy access of the loans is facilitated if the hotel industry will be having a reputed brand image in the society and in the competitive market. It is also often seen that due to mismanagement sometimes the customers complain regarding it, but it can be sorted out easily by handling the grievances of the customers with tactics. This article also shows how the hotel industry works for performing both on the long term and short term equity of the hotel in order to achieve the goals.

 

9) Explanation of alternative conclusion that can be drawn from the evidence

This article well explains the brand image of the hotel and the factors that helps the hotel in keeping up to the mark in this competitive edge. So, on the basis of the article and the factors that are mentioned for keeping up the brand image of the organization, the conclusions are drawn. The article has focused on the strategies that the hotel industries adopt for a long term sustention in the market and occupy a good position in the market. The factors such as keeping relationship with the customers, maintaining a good brand image and providing a good service to the customers helps the hotel industry in getting a good brand image and brand name in the hospitality industry. Moreover, the increase in market share also helps in market extension and service to the customers. The well maintenance and cleanliness of the hotel industry influences the customers to a huge extent which therefore affects the brand image of the hostel.

10) Explanation how generalized the conclusions are

The conclusions that are given in this context in the article have an extensible explanation regarding the strategies that the hotel industries generally adopt in order to compete this competitive environment. The conclusions so drawn are focused on the interest of both the hotel industry and customers since both the factors are interlinked with each other. The better the services will be, the better the customers will be accessing the hotel that will ultimately lead to the success of the hotel which will earn it a good brand value and image.

 

References

Cunill, O. (2006). The growth strategies of hotel chains. New York: Haworth Hospitality Press.

De Mooij, M., & Hofstede, G. (2010). The Hofstede model: applications to global branding and advertising strategy and research. International Journal Of Advertising, 29(1), 85. doi:10.2501/s026504870920104x

Dens, N., & De Pelsmacker, P. (2010). Consumer response to different advertising appeals for new products: The moderating influence of branding strategy and product category involvement. J Brand Manag, 18(1), 50-65. doi:10.1057/bm.2010.22

Enz, C. (2010). The Cornell School of Hotel Administration handbook of applied hospitality strategy. Los Angeles: SAGE.

Go, F., & Govers, R. (2010). International place branding yearbook 2010. Basingstoke: Palgrave Macmillan.

Herskovitz, S., & Crystal, M. (2010). The essential brand persona: storytelling and branding. Journal Of Business Strategy, 31(3), 21-28. doi:10.1108/02756661011036673

Ling, L., Guo, X., & He, L. (2012). Optimal pricing strategy of hotel for long-term stay. IJSTM, 17(1), 72. doi:10.1504/ijstm.2012.048024

O'Neill, J. (2004). Hotel Branding Strategy: Its Relationship to Guest Satisfaction and Room Revenue. Journal Of Hospitality & Tourism Research, 28(2), 156-165. doi:10.1177/1096348004264081

O'Neill, J., & Mattila, A. (2009). Hotel Brand Strategy. Cornell Hospitality Quarterly, 51(1), 27-34. doi:10.1177/1938965509352286

Sturman, M., Corgel, J., & Verma, R. (2011). The Cornell School of Hotel Administration on Hospitality. Hoboken, N.J.: Wiley.

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