Brand asset equilibrium in hotel management

Abstract

Branding is a topic of great interest in the global hotel industry. In the USA, over 70 percent of the hotels are branded; in Canada, brand penetration is around 40 percent, in Europe it is under 25 percent and growing. Branded hotels tend to outperform comparable independent properties. A fundamental understanding of the dynamic relationship between brand asset value and the management of marketing and operations can be the key to success of branded hotels. A model has been developed to demonstrate the relationship of these key factors. In order to achieve brand integrity and consistency, a balanced approach is suggested. The integrity of any brand will ride on doing well what they say and saying it right what they do every day at every point of guest contact. The article offers an insight both to owners and operators of branded hotels and for those who consider joining a brand in the future.