1 Hotel cover.indd - Nicola Cottam

Key Issues: Branding
Some UK hotels are already tackling the challenges ahead and some, like The Four Seasons, the Mandarin Oriental
and the Ritz Carlton, are proficient brand exponents. However other five-star groups are not up to scratch
and are being forced to raise their game or risk suffering the fate of less proactive brands in the past. The Savoy,
for example, was at the top of its league 20 years ago but trade has been hit by its inability to adhere to modern
expectations. It has fallen down the five-star ranks as a consequence. Park Lane’s five luxury hotels may find
themselves in a similar situation if they fail to deliver a clear brand message to customers as they battle it out for
business and leisure travellers.
In a crowded market place it is essential to clearly differentiate brands, but research has found there is no consensus
on what constitutes a ‘the brand’ in the hotel industry. Consumers remain confused and often find it hard to
articulate the differences between competing brands.
Analysts agree that consistency is the key to creating a successful brand – both in terms of the product and customer
service. This is difficult in a market that is often judged on service levels, especially at the high-end of the
market, where reputations are built on high levels of personal service, and where employee-customer interactions
are very high. Deloitte estimates a 250-property upscale hotel chain has up to 200 million guest touch points per
annum, highlighting the challenge of consistent delivery.
At the very least, top hotels are expected to have broadband Internet and luxury gym and leisure facilities, but
consumers are demanding more. Some groups are taking extraordinary steps to differentiate themselves. The
five-star Grange City Hotel, just outside The City, recently opened a woman-only wing in its hotel in a bid to
attract female corporate travellers, while IHG is forging ahead with plans to strip its doormen of their traditional
tailcoats in favour of plain grey suits, to create a less formal image.
Others have focused on employees, developing ‘staff engagement’ initiatives to ensure employees have a clear
understanding of brand values, and how to convey them to customers. IHG rolled out a colleague engagement
programme between June and September last year, involving 40,000 staff in 140 hotels, for this very purpose.
Conversely, the Starwood Group (based in New York) has delivered a much clearer brand message for its four
hotel brands – the Sheraton, Four Points, Westin and W – through their respective websites and with external
advertising and promotions focusing on key attributes.
In a many ways, the budget hotel market appears to be ahead of the game when it comes to defining their brands.
Travelodge, in particular, is very clear about what it has to offer: cheap, clean, functional hotel rooms, with guaranteed
parking. Customers know that wherever they go in the UK the facilities and standards will be the same. This
is what every brand strives to achieve – the ultimate brand experience. Last year it reinforced its brand message
with a ‘promise’ that guaranteed customers a room at £29 anywhere in the UK. Travelodge also dispensed with
jackets, ties and scarves last year, and introduced an informal uniform instead.
Service is less of an issue with budget hotels that tend to be product led, with fewer customer touch points. For
example, Accor’s Formule 1 hotels are designed with minimal human interactions in mind. Customers book
online and check-in via credit card.
March 2007 Hotel Report Guide to UK Hotels l © William Reed Publishing 46