Finding that Perfect Hotel Brand

Millions of vacationers travel every year to exotic locations. Today’s hotel brands are tailored to accommodate the tastes and preferences of such travellers. They are designed to satisfy the most extravagant of travellers and also those who look for serious value for their money. The rule for expansion is simple — the bigger the market share, the better the revenue. Brand segmentation works by expanding the client base to suit the needs of people across various price points while maintaining its essence.

Imagine that a global hospitality organisation wants to expand its horizons from the super luxury and niche markets. The idea of building more hotels can erode the authenticity of this exclusive hotel brand. Expansion is then limited to buying hotel brands that cater to those who require lesser luxuries and more value in their stay, by doing so they enhance their market share and revenue while retaining the brand’s character.

The economy brand generally caters to the budget travellers. The requirement is for a quality room with a few basic amenities that are suited for a stay of a short duration. The idea here is to provide convenience at the lowest possible rates.

The mid scale hotel brands cater to a different segment of the travelling population. The chief needs that govern the decision making process here are quality rooms and reasonable prices. Spacious rooms with internal corridors, complimentary breakfasts, free amenities like internet access, business centers, and access to gyms are some of the hallmarks that feature in this segment.

The extended stay market is a relatively new segment. The guest rooms are typically very spacious and comfortable, almost like a house. They feature a sitting area, double beds and more, a small kitchenette or bar with a refrigerator and a bath. These hotel brands cater to guests who usually plan to stay for four to six nights at the location.

The upscale markets provide full service and feature modern rooms with views. These hotels tend to emphasise their service aspect by offering plenty of amenities with higher levels of service compared to the mid scale markets.

The luxury markets feature nothing but the best – in accommodations and in services like the concierge, a beauty spa, shopping boutiques, fine dining restaurants, and more. Their consumers are very picky and if they have not found a brand that suits their tastes and needs yet, there are more are on the way.

The independent hotels prefer to market themselves as a unique place, a niche brand that caters to the luxury segment. Since they are not a part of any chain, their marketing, business development and services tend to reflect their out of the box thinking.

Summary

Brand segmentation works wonderfully in the hospitality industry. The idea is to build a great brand and then offer the same brand aesthetics and consistent quality across different levels and places. This in turn, breeds customer loyalty. With different brands representing different aspirations and needs, consumers can now find their perfect hotel brand when it comes to their travels.