Case Study: Hotel Chain Brand Differentiation - How major companies are using an array of brands to appeal to all
Summary
Tourism Case Study "Hotel Chain Brand Differentiation - How major companies are using an array of brands to appeal to all", looks at the multi-brand strategy employed by the worlds leading hotel chains. It offers an insight into the key reasons behind this strategy, who the hotels are looking to attract and how successful the tactic is proving.
Companies can differentiate their brands by age, budget, and type of traveller. Accor Hotels operates through 32 brands, Marriott owns a total of 30, Hilton has 16 brands, while Best Western and Intercontinental Hotel Group (IHG) have 13 each. Some operate brands ranging from budget to luxury, but some operators, such as Four Seasons, still prefer to focus on a specific section of the market.
Most major hotel companies own and operate a range of brands aimed at an array of different consumer types.
Through offering different brands, these companies can ensure they appeal to everyone, but this multi-brand strategy is not without potential pitfalls. Marketing to millennials and luxury travelers are the main trends but Millennial marketing can be difficult as they are a diverse generation with very different needs. Hotel chains risk losing their main brand identity through this strategy and branding needs to be clear to ensure consumers know what to expect from their stay.
Scope
- Accor Hotels operates through 32 brands, Marriott owns a total of 30, Hilton has 16 brands, while Best Western and Intercontinental Hotel Group (IHG) have 13 each.
- Shared accommodation applications (such as Airbnb) have disrupted the sector and hotels have had to fight for customers.
- The hotel chains are protecting themselves against failure in one hotel category by offering diverse brands that cover the price spectrum.
- Hotel chains risk losing their main brand identity through this strategy. Branding needs to be clear to ensure consumers know what to expect from their stay.
Reasons to buy
- Gain an insight into hotel chains use of multiple brands as they look to attract custom from all demographics
- Understand the reasons for this strategy, as well as the potential pitfalls
- Assess the success of major hotel chains multi-brand strategy.
Overview
How hotel brands differentiate themselves
What are major hotels doing to differentiate their brands?
Hotels diversify their brands because different consumers prioritize different factors
Hotels have had to work hard to hold the attention of younger travellers
Marketing towards millennial consumers
Marketing towards luxury consumers
Potential roadblocks to brand differentiation
Appendix
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