Briefing: Understanding brand power in a new landscape
What does it mean to be a hospitality brand in 2015? Travellers today will not be as influenced by a brand name as they once were when booking accommodation. According to Mintel Group, 48% of guests will not visit the hotel’s website before arrival, and 79% see price as a key factor when choosing a hotel. However strong brands in the industry are still growing.
These videos look at the way new brands are developing, how powerful brands are staying relevant, and what might happen with brands in the future:
In todays’ hospitality landscape technology has changed distribution forever, given independents more power and has sparked the emergence of new brands.
There is some debate over the possible consolidation of brands in the future as discussed in the above videos. At the moment more and more brands are being created, often within existing brands, to serve new markets.
In other industries the power of the brand is still immensely strong particularly in the technology industry. Apple currently tops Forbes list of The World’s most Valuable Brands, with a brand value of $145.3 Billion. Microsoft, Google and Coca-Cola and IBM make up the rest of the top 5.
The MKG group’s Hospitality database shows that in January 2015, IGH was the top ranked Hotel Brand. It had 710 295 rooms and a growth of 3.4% on 2014. Hilton and Marriot were ranked 2nd and 3rd and showed growth of 5.4% and 5.9% respectively.
A survey from BDRC found that 42% of European leisure travellers rate review sites as important when selecting a hotel for leisure. In comparison 36% rate hotel brands and important. BDRC also found that leading brands can still command a higher price than unknown brands, with an uplift of €26.98 in the luxury market.
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