Spellbrand Blog
Effective Branding Strategies for Hotels
The current landscape of the hospitality sector pushes hotels to work harder in differentiating their brand and promoting their services. For sure, travelers have different needs, which means brand developing and segmenting is a must. In addition, branding can also allow hotels to grab opportunities that can come up from business alliances, pricing structure or product extensions.
Economy to Luxury
One hotel is not intended to serve each traveler. Thus, each hotel should be able to position itself to please a specific segment of travelers. These people have different needs, budgets, and expectations. Hotels should incorporate these factors in the process of developing their brand. Some of the segments that you can bear in mind: families, students, jet setters, and business travelers. Some hotel groups may even have multiple branded individual hotels—each of these caters to different segments of clients. This is the same for real estate company branding since they share similar demographics and target markets.
Rates-based strategy
Hotels are always free to promote their service based on rates. Hotels may create an accommodations-versus-rate mix based on the budgetary needs of their customers. For instance, a student backpacking within Europe and a business executive gracing a conference definitely have a different amount of money to shell out. Cheap, dorm-type rooms seem to be very appealing for student clients. On the other hand, business executives are more likely willing to pay more to experience a high-end suite complete with amenities they need.
Extend your network within the sector
In every industry, having a good network or alliance is necessary. It helps a lot of a hotel is part of a good hotel group. For instance, if a hotel wants to promote itself a trendy, the hotel needs to align itself with some local creative groups and even local restaurants. This may help in gaining referrals. You can help one another expand your respective client base.
Brand extensions
When it comes to brand extensions, branding may work in two ways: hotels that transform the brand name into products and non-hotel products that extend their brand to the hotel industry.
For example, there are branded hotels in which guests may find products placed inside their rooms that are not the main products of the hotel. Items like linens, towels, robes are often subcontracted to other labels but are projected as produced as the hotel’s brands with their hotel logos on them. Recently, however, fashion companies tie up with hotels so they can have their products used without having to sacrifice their brand. This may be beneficial to hotels and “suppliers” of items.
Co-branding may also be an effective strategy. There are lots of ways on how to incorporate other brands into the marketing strategies of a hotel. Co-branding happens when two or more brands work together in a marketing strategy without losing their individual brand names. Apparently, every brand benefits out of this strategy. For instance, hotels may tie up with branded spa products. These products can be used by the hotels without having to change the labels.
Combining branding and service strategies
Essentially, branding should be based on a specific product or service to be promoted. One strategy will not always work for all products. For hospitality organizations and companies, the branding strategy should consider the actual location and property. This suggestion is based on the idea that travelers may use the Internet for them to look for their choices of hotels or restaurants before they arrive in the area for business or leisure purposes.
It is also important for managers to focus on the level of service they render. The hotel’s service can definitely define the quality of a hotel—more than the interiors and amenities.
After picking an effective branding strategy, hotel managers should always look into the customer service they offer. This is one of the most crucial aspects of any hospitality company. In capitalizing on customer service as the main marketing strategy, hotels should allow their staff members to interact enough with customers; create a well-thought plan to achieve excellent customer service, and assess if employees are strictly following the service protocols set by the hotel.
These are just some of the branding strategies that hotels can use for them to stand out in the market. The hospitality industry has been growing lately, and it is more challenging for most hotels to promote what they have. Bearing the suggested strategies may help boost the image and income of a hotel.
Mash Bonigala
Creative Director & Brand Strategist
With 25+ years of building brands all around the world, Mash brings a keen insight and strategic thought process to the science of brand building. He has created brand strategies and competitive positioning stories that translate into powerful and stunning visual identities for all sizes of companies.
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