Hospitality Branding

Hospitality Branding

Copyright Date: 2012
Edition: 1
Published by: Cornell University Press
Pages: 128
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  • Book Info
    Hospitality Branding
    Book Description:

    In recent years the brand has moved squarely into the spotlight as the key to success in the hospitality industry. Business strategy once began with marketing and incorporated branding as one of its elements; today the brand drives marketing within the larger hospitality enterprise. Not only has it become the chief means of attracting customers, it has, more broadly, become the chief organizing principle for most hospitality organizations. The never-ending quest for market share follows trend after trend, from offering ever more elaborate and sophisticated amenities to the use of social media as a marketing tool-all driven by the preeminence of the brand.

    Chekitan S. Dev's award-winning research has appeared in leading journals including Cornell Hospitality Quarterly, Journal of Marketing, and Harvard Business Review. He is the recipient of several major hospitality research and teaching awards. A former corporate executive with Oberoi Hotels & Resorts, he has served corporate, government, education, advisory, and private equity clients in more than forty countries as consultant, seminar leader, keynote speaker and expert witness. Hospitality Branding brings together the most important insights from the author's many years of research and experience, all in a single volume. Skillfully blending the knowledge of recent history, the wisdom of cutting-edge research, and promise of future trends, this book offers hospitality organizations the advice they need to survive and thrive in today's competitive global business environment.

    eISBN: 978-0-8014-6570-3
    Subjects: Business

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-vi)
  3. Preface
    (pp. vii-x)
  4. Part I. The Hospitality Brandscape

    • CHAPTER ONE Hospitality Marketing and Branding: Past and Future
      (pp. 3-12)

      Hospitality marketing helps businesses provide real value to targeted customers, motivate purchase, and ultimately solve customer problems. Creating customer value and satisfaction are at the heart of hospitality and travel industry marketing. While many factors contribute to making a business successful, the most successful companies at all levels are strongly customer focused and heavily committed to marketing.

      Against this backdrop of marketing preeminence, this chapter discusses the evolution of hospitality marketing over the past fifty years, at a moment coinciding with the fiftieth anniversary of the Cornell Hospitality Quarterly (CHQ), by reviewing key marketing developments by decade, particularly as seen...

    • CHAPTER TWO Branding Challenges and Opportunities
      (pp. 13-20)

      This chapter distills important lessons from an event that brought luminaries from industry and the academy together to discuss cutting-edge developments in branding, which is the central organizing principle for most hospitality organizations. The roundtable gathering outlined below addressed a host of brand-related issues, including global brand building, brand value, promoting brands over the Internet, legal rights, and design.

      The Cornell Hospitality Brand Management Roundtable at the Center for Hospitality Research (CHR) at Cornell University was designed as a one-day, interactive, high-level discussion among a select group of thirty brand executives, consultants, and professors who shared their experience and knowledge...

    • CHAPTER THREE Branding and the Internet
      (pp. 21-29)

      Today, the dominant Internet usage paradigm is Web 2.0, featuring interactive applications that are context sensitive to user-generated data and social relationships. Users carry smart phones and tablet computers, searching out information to make real-time purchases and reservations. A relatively recent outgrowth of the resulting time compression in marketing and sales is the phenomenon of social couponing, offered through daily deals, flash sales, and private sales. In 2010, e-commerce in the United States generated $228 billion in sales, including $85 billion for travel services, which grew by 73 percent from 2005 through 2010.¹ Flash sale sites have helped fuel this...

    • CASE STUDY ONE Carnival Cruise Lines
      (pp. 30-38)

      Carnival Cruise Lines is the market leader in the low-priced cruise market. Carnival achieved this position during a period of rapid growth in the industry by emphasizing onboard activities, targeting younger cruisers, using extensive television advertising, and focusing on the travel agent as its channel of distribution. With continuing industry growth, new companies are entering the business and existing liners are adding ships. Currently, Carnival controls 24 percent of the berth space in the North American market. Management must now decide how Carnival should burnish its brand in preparing for the future. In this commentary, I reflect on a case...

  5. Part II. Global Branding

    • CHAPTER FOUR Global Brand Expansion
      (pp. 41-50)

      When hotel firms expand internationally, they must choose ownership and management strategies that enable them to maintain their competitive advantages in a new market. The interplay between a company’s strengths and local resources drives the type of partnership or affiliation arrangement that a company uses to enter a foreign market. This chapter follows recent research in assuming that the best entry strategy aligns an entering firm’s strengths and weaknesses with a local market’s environment as well as with the firm’s own structural and strategic characteristics.¹

      When contemplating foreign market entry, any firm in any industry should separate ownership decisions from...

    • CHAPTER FIVE Branding beyond Borders
      (pp. 51-62)

      Hotel brands commonly enter international markets through contractual arrangements such as franchises and management contracts.¹ The study presented in this chapter examines the factors that brands consider in choosing between franchising or management contracts. The study considers firm assets such as machinery, process know-how, and trade resources and skills as well as environmental factors that influence this choice.²

      The choice between using franchising or management contracts for hotel brand expansion is difficult to explain using traditional international-business theories, because hotel brands care more about the effective transfer of technology and deployment of transaction-specific assets or knowledge than about the possible...

    • CHAPTER SIX Brand Strategies
      (pp. 63-71)

      By adopting a market orientation, a brand commits itself to satisfying its customers’ needs over the long run. Although profitability, market share, return on investment, and other performance benchmarks ultimately determine the success of any strategy, a market orientation is meant to achieve such goals by providing customers with superior value on a sustained basis. Those familiar with the concept understand that adopting a market orientation is not merely undertaking a marketing department initiative, but instead means instituting an organization-wide culture that, when properly established, provides a brand with norms and beliefs that shape an integrated organizational strategy for sensing...

    • CASE STUDY TWO Ritz-Carlton Bali
      (pp. 72-80)

      The business model under which many hotels operate, in which a property owner uses a management contract to engage a hotel brand to run its facility, has not always worked smoothly, because of the complexities involved in the use by the property of the brand’s resources and name. Since the early 1990s, however, a series of court cases in which property owners have litigated to protect their interests has gradually clarified the legal obligations that a hotel property manager incurs under such a contract.¹

      A hotel management contract ideally benefits both the property owner and the operating company. The owner...

  6. Part III. Strategic Branding

    • CHAPTER SEVEN Brand Equity
      (pp. 83-92)

      Building a strong brand, or brand equity, drives business success. This chapter examines brand equity in the hotel industry and demonstrates a method for measuring it. The objective of the exercise is to offer a diagnostic and decision-making tool to CEOs and top managers of hotel companies that could help them maximize brand value. In the absence of real-life examples of brand equity measurement, the chapter sketches a hypothetical but realistic demonstration of how a proposed brand equity index was developed and can be used to assess a brand’s strength over time and in relation to its competitive set.


    • CHAPTER EIGHT Brand Positioning
      (pp. 93-101)

      A hotel brand’s unique selling proposition—the argument it makes to convince travelers to book its hotels instead of someone else’s properties—is known as its market position. The position comprises the bundle of attributes that the hotel offers in an effort to meet guests’ wants and needs. A brand’s position can be viewed from two perspectives, that of the brand’s management and that of the guests. The brand’s management must have a firm concept of the hotel’s intended position, and its promotional efforts must articulate not only what the brand offers but also how its offerings are distinct from...

    • CHAPTER NINE Brand Extensions and Customer Loyalty
      (pp. 102-111)

      Building and successfully managing strong brands is considered a key driver of success in the hotel industry. CEOs of hotel companies that own brands recognize that brand equity drives stock price and shareholder value. Consumers often base their hotel stay decisions on their perception of a specific hotel’s brand name. The United States now has well over three hundred hotel brands competing for business, more than in any other product category. Many of these brands are extensions of existing brand names.

      Brand extension is the practice of introducing a new brand (differentiated by market segment) using a well-established brand name...

    • CASE STUDY THREE Taj Hotels, Resorts, and Palaces
      (pp. 112-120)

      The case study presented in this chapter offers a framework for innovation, the 7-I process, and examines the factors that underlie successful service innovations within the framework of a comprehensive and integrated innovation-management model.

      They say that an excellent hotel generates few complaints.¹ Yet hearing few complaints may mean that honest guest feedback is not being heard, not that guests are satisfied. An inefficient or inaccurate system for registering and responding to guest complaints breeds poor performance. Since handling complaints is an integral part of any service operation, it is important to develop an effective complaint-management system. Moreover, hotel employees...

  7. Part IV. Branding Execution

    • CHAPTER TEN Managing Marketing and Branding Relationships
      (pp. 123-133)

      This chapter presents a study of marketing relationships between hotel brands and the properties with which they do business. In such relationships, both parties hope to minimize the costs of exchange. The chapter focuses on the development of governance mechanisms that can minimize those costs by preventing, or at least minimizing, the impact of opportunism on partners in a business relationship.

      Opportunistic behavior, which includes dishonesty and neglecting obligations, is undertaken to achieve short-term, unilateral gains, perhaps even at the expense of a trading partner. As a result, opportunism by one party can erode the long-term gains potentially accruing to...

    • CHAPTER ELEVEN Brand Franchising
      (pp. 134-142)

      The importance of franchising to the development of the U.S. lodging and restaurant industries cannot be overstated. Franchising was, for example, the vehicle for the initial expansion of Holiday Inn and McDonalds in the 1950s. In recent years franchising has been an expansion strategy employed by hotel and restaurant brands in many segments. For example, according to industry analyst Stephen Rushmore, “Franchised hotels account for more than 65 percent of the existing U.S. hotel-room supply.”¹ As franchising increases its share of the lodging and restaurant industries, achieving higher levels of market growth becomes more difficult for the franchisors. Lately researchers...

    • CHAPTER TWELVE Brand Partnerships
      (pp. 143-153)

      Brand partnerships in hotels typically involve an owner (often a brand franchisee) and an operator (not always providing a brand identity), two separate business entities, both of which contribute their respective assets to give the hotel the required cachet to succeed in the marketplace. When their relationship is amicable, the two entities can work together to help the hotel project an attractive image and position itself against competing brands. The quality of such a brand partnership drives how customers, competitors, suppliers, and partners perceive the hotel. However, when the relationship is not cordial, one partner or the other might work...

    • CASE STUDY FOUR Groupon
      (pp. 154-164)

      Ithaca-based Experience!The Finger Lakes (E!FL), which Laura Winter Falk had founded with her husband, Alan, was a tour operator offering guided tours and concierge services in the Finger Lakes region. After four years their venture was so successful that in 2010 the Falks had acquired a second touring van. However, demand in 2010 had begun to taper and they had not used their second van as often as they had hoped. The spring 2010 season had been particularly slow and the Falks were wondering how to increase growth and revenues. So far, they had relied on their website, referrals, and...

  8. Acknowledgments
    (pp. 165-168)
  9. Bibliography
    (pp. 169-180)