In hospitality, brands have been associated with large chains. Earlier, these chains focused on the luxury segments with brands like Taj, Oberoi and ITC Hotels. Over the last thirty years, brands have emerged in the mid segment like Sarovar, Lemon Tree and Royal Orchid. In the last decade, we have seen brands emerge in the budget segment with Oyo, Treebo and FabHotels. Post Covid-19, brands have also taken over the homestay and vacation rental segments through StayVista, Saffron Stays and Elivaas.
Prior to Covid-19, chains were unable to grow at a fast pace due to the slow process of purchasing land and developing a hotel from scratch. Rebranding existing properties was also slow due to resistance from property owners to partnering with brands and giving up control over their properties.
All of this changed dramatically after Covid. With many properties impacted financially by the pandemic, many property owners were keen to tie up with a brand to secure their finances. With brands being able to provide the complete operational and marketing support needed to grow the business, it seemed like the best option for them. Those that chose not to eventually sold their properties and got out of the hospitality business.
While brands offer standardization and high service standards, a majority of hotels in India are still stand-alone properties. However, these standalone properties generally cater to the budget segments or the 3 & 4-star categories. Very few standalone properties are found at the luxury level. Exceptions to this are established properties like the Imperial in New Delhi and Ananda in the Himalayas in Rishikesh. These properties have turned themselves into brands through their marketing efforts and high standards that match other brands.
WHAT IS BRAND MANAGEMENT?
A brand is defined as “any name, term, symbol, sign, and design, sound or unifying combination of these that identifies one product from another competitive product”. Therefore, Brand Management is the “process of using a brand’s elements to increase its perceived value and build a positive brand image”.
Hospitality branding is about “creating a distinctive and compelling identity for your hospitality business” that helps you to stand out from your competitors and leave a lasting impression on your customers. Ultimately, it should earn brand loyalty to ensure the long-term survival of your business.
Brand Management involves the following elements:
1. Brand Identity: The elements that identify a brand like logo, colour scheme or messaging. This makes up the brand personality
2. Brand Positioning: How the brand wants to be perceived by its customers i.e the value proposition
3. Brand Communication: The method of communication used with customers and stakeholders and the emotional connect that you develop with them.
4. Brand Experience: The actual experience faced by the customers
5. Brand Monitoring: The analytical insights that help a brand improve
Brand Strategy: The approach that a brand takes to stand out to its customers
7. Strategic Brand Management: The words, images and techniques that the brand uses to be unique
A successful brand identity needs to extend to the smallest of details—the interior design, the language and demeanor of your staff, the graphic design elements, uniforms and even special offers should all contribute to the overall brand identity.
WHY IS BRAND MANAGEMENT IMPORTANT?
In hospitality, brand management helps in creating and maintaining a business’ identity and reputation in the industry. This involves developing a brand strategy, establishing brand standards and creating a consistent brand presence.
A clearly defined brand sets a hotel or homestay apart from competitors and helps create a unique identity, values and promises to guests.
1. Competitive Advantage: Having an effective branding helps hotels or homestays stand out from the competition. In most competitive markets, a brand can either make or break a business. A distinct identity and positioning can be further elevated through unique offerings. This is important when targeting a specific audience as well as to be noticed. A strong identity can also help in generating direct bookings since guests will be familiar with the brand. Hospitality businesses have an opportunity to establish their distinctiveness and stand out through effective branding. The key is to have an excellent and consistent brand identity that allows you to shine and create your own niche.
2. Guest Expectations and Trust: A strong brand creates an image in the minds of guests regarding the quality of service, amenities and overall experience they can expect. The ability of a property to consistently meet or exceed these expectations is what builds trust and credibility. This, in turn, leads to long-term guest loyalty and word-of-mouth recommendations. Guests are attracted to brands they can trust and feel safe with. Trust can be built through consistent branding that reflects your brand’s personality and connects with your audience. By consistently delivering great service and developing a positive reputation, a hospitality business can earn the trust of its guests. This will mean that loyal guests are likely to recommend you to friends and family or through online reviews, which will further enhance the property’s reputation in the market. Consequently, brand management has an impact on the customer experience.
3. Emotional Connection: Memorable experiences are created when brands are able to evoke positive feelings and connect with guests on a deeper level. Branding is not just about visual identity; it includes the entire journey of a guest from booking to check-out -- making sure that every touch point makes the guest feel connected to the brand. Successful branding has the effect of forging strong emotional connections with guests. Hotel brands evoke emotions through pictures of luxurious indulgences, comforting haven, thrilling adventures and other experiences sought by guests. A hospitality business that can craft a brand that touches the target audience at an emotional level will ensure brand loyalty and guarantee a lasting impression by creating brand advocates who will speak up and promote your brand.
4. Revenue generation and market positioning: Apart from attracting new customers, partners, and franchisees, a strong brand is able to command a higher price and attract more affluent customers willing to pay for what they perceive as value and quality. Hotels with stronger reputations also enjoy higher occupancies, repeat business and opportunities for growth and expansion into new markets or segments.
5. Employee engagement and alignment: A brand is not only important in terms of connecting with customers. The brand identity must be strong enough for the employees to be aligned with values and service standards. Having employees who embody the brand ethos contribute positively to guest experiences, thereby enhancing overall service delivery and operational efficiency.
6. Adaptability and resilience: A strong brand is more effective in dealing with challenges. By continuously adapting to the changing economic environment and market demands as well as changing consumer preferences, brands can stay relevant and adapt to changing trends, thereby, maintaining their competitive advantage and sustaining growth over time.
Conclusion
Brand Management does not only apply to large chains or luxury hotels. In a competitive market, brand management becomes even more important for standalone properties and homestays which will not be able to compete successfully with established brands unless they can stand out and be unique. There are many examples of standalone properties that have been successful in creating a brand like Imperial Hotel in New Delhi, which has built its brand identity on being one of the few heritage properties in Delhi. Similarly, Ananda in the Himalayas has been able to build a brand based on its location and its focus on the wellness segment. There is nothing that stops a standalone property or homestay from establishing itself as a brand even if it is for a single property!
CCS Hospitality Marketing is a Revenue Management and Marketing Consultancy that works with standalone hotels and boutique homestays as well as small chains. We specialize in helping our clients grow their business through online and offline channels. If you are looking to turn your property into a brand or need sales and marketing support, connect with us for a free consultation on brand management strategies.
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