Brand value is all powerful and vital to the growth of hospitality brands, yet according to recent indices from Interbrand, WPP (BrandZTM) and Forbes Most Valuable Brand Index, there are no hotel brands in the top 100 global brands, reports international law firm Taylor Wessing. The 2017 Brand Finance Top 500 Global Brands Report ranks hospitality companies as Hilton (171), Booking.com (274), Marriott (332), Expedia (367) and then Sheraton (443).
Perhaps even more striking, the hospitality “service companies” are becoming as recognisable and valuable as the hotels they feature. With increasing market presence and massive marketing budgets, the signs are that these will put the hotel brands under even more pressure to deliver on their brand value and recognition.
If hotel brands are to compete with the plethora of alternative accommodation now offered by web-based companies such as Airbnb (ranked at 474, but predicted to climb), they must find better methods of targeting young consumers. Millennials tend to trust reviews from their peers, value convenience, and will not accept brand prestige as a reason for checking in. These considerations offer unique international real estate marketing opportunities, some of which hotel brands are already trying to take advantage of.
For example, in 2015 Marriott launched a new chain, Moxy Hotels, specifically targeted at young travellers who place their emphasis on experiences over materialism.
“We did tons of research to find out what millennials wanted, and the ideas of authenticity and communal spaces were very important. The idea is to create a living room where you can hang out with people and also always be plugged in,” said Vicki Poulos, global brand director of Moxy Hotels. “It’s like a boutique hotel that has the social heart of a hostel. That’s why people stay at an Airbnb, so we built a brand that had that same communal spirit.”
Clearly, hotel brands know what they need to do, it’s just a case of making a consistent effort that will raise their value over the coming years.
