Brands are a phenomenon that has been in existence already for centuries. From its original purpose of marking livestock, the concept was later adopted by manufacturers for their products and further developed and adapted to changes in business environments. The original idea of using marks to indicate ownership and origin, however, can be traced back even for millennia to ancient Greek and Rome and early Chinese dynasties.
These days, the number of brands is greater than ever. More and more businesses have come to realize the power of brands, and the concept of brand management has consequently gained considerable interest in recent years. Every year the number of new brands registered increases. Fortune magazine suggests that "In the 21st century, branding ultimately will be the only unique differentiator between companies."
Initially, the use of brands, or marks respectively, was limited to physical products only. Service brands are comparatively new in the long history of branding. The hotel industry – along with many other services – is lagging behind manufactured goods by decades. For this reason, research on brand management mainly concentrates on this type of products. Literature on service brands is comparatively scarce. Nonetheless, there are great potentials for brand management in the service industry in general and the hotel industry in particular.
Hotel services differ from physical goods in many ways. For this reason, research findings and approaches to building and managing brands cannot simply be transferred. The major goal of this work is therefore to examine the concept of brand management, to adapt and apply it to hotel services.
In today’s ultra-competitive business environment, customer loyalty is a hot topic. The hotel industry has turned into a buyer’s market. Competition keeps intensifying at steady pace, resulting in a surplus of capacities. As a consequence, the importance of making guests return becomes a critical issue. It is said that brands provide the opportunity to encourage the creation of loyalty among consumers. In comparison to generic products, they are believed to have an advantage in achieving this goal. A second objective of this work is to determine the connection between these two concepts and to investigate the beneficial effects of branding hotel services for the process of establishing loyalty.
Table of Contents
1 The Concept of Brands
1.1 Definitions
1.2 Brand Functions
1.2.1 Company Benefits
1.2.2 Consumer Benefits
1.3 Product Requirements
1.4 Evolutionary Eras of Brand Management
2 Branding in the Hotel Industry
2.1 The Industry of Hotel Services
2.1.1 Economic Position
2.1.2 Industry Trends
2.1.2.1 Customer Trends
2.1.2.2 Suppliers Trends
2.2 Characteristics of Hotel Services
2.3 The Need for Branding In the Hotel Industry
2.4 Unfavorable Conditions for Branding Hotel Services
2.4.1 Difficulties Resulting From Involvement of People
2.4.2 Difficulties Resulting From Intangibility
2.5 Favorable Conditions for Branding Hotel Services
2.6 Creating a Hotel Brand
2.6.1 Strategic Brand Analysis
2.6.2 Brand Identity
2.6.2.1 The Brand as a Product
2.6.2.2 The Brand as an Organization
2.6.2.3 The Brand as a Person
2.6.3 Brand Name
2.6.4 Brand Symbol
2.6.5 Brand Slogan and Stories: The Brand in Words
2.6.6 Hotel Employees as a Brand Element
2.6.6.1 Brand Culture
2.6.6.2 Additional Efforts
3 Conceptual Framework
3.1 Benefits of Customer Loyalty
3.2 Expressions of Customer Loyalty
3.3 The Achievement of Customer Loyalty
4 Establishing Customer Loyalty
4.1 Consumer Behavior
4.2 Customer Buying Process
4.3 Loyalty Elements and the Power of Brands
4.3.1 Customer Satisfaction
4.3.2 Brand Image
4.3.3 Sympathy
4.3.4 Trust
Research Objectives and Core Themes
The primary objective of this work is to examine the concept of brand management, specifically adapting and applying it to the hotel industry. Furthermore, the paper aims to determine the connection between branding and customer loyalty, investigating how the branding of hotel services contributes to the establishment of loyal customer relationships in an increasingly competitive buyer’s market.
- Evolution and functions of brand management
- Specific characteristics and challenges of branding in the hotel industry
- Strategic elements of creating a hotel brand (identity, name, symbol, culture)
- The role of human resources and internal branding
- Conceptual framework for customer loyalty in the lodging sector
Excerpt from the Book
2.6.6 Hotel Employees as a Brand Element
In the hotel industry, employees play a pivotal role. Because of the nature of hotel services, their function is even more important than in other industries that do not rely as much on personal contacts between customers and staff. In hospitality, on the other hand, employees can be described as the critical link between company and travelers. As messengers of the hotel, they are the ones who express the brand and its values and who translate those parameters into guest experiences.
Hotel services are delivered by the interaction of patrons with the facility’s staff. When customers evaluate their hotel stay, they generally do so by combining the assessment of two factors: the quality of the physical product and that of the service provision. However, the evaluation normally does not consist of a 50:50 rating; patrons put very high emphasis on the experiences made with front-staff personnel. They tend to remember these encounters better than any other aspect of their stay. As a consequence, employees become an integral part of the brand. Making investments in expensive marketing campaigns to promise guests an extraordinary experience is a waste of money if the service personnel will not be able to fulfill this promise, and so are a superior environment and facilities. On the other hand, if employees act according to brand values and promises, the customer sees a well-rounded picture where all parts fit together, and he will be pleased. It can therefore be said that it is a hotel’s staff which make the difference between an average brand and a really great one.
Summary of Chapters
1 The Concept of Brands: This chapter provides an introduction to brand management, defining key terms and exploring the historical evolution of brands alongside their benefits for companies and consumers.
2 Branding in the Hotel Industry: The focus shifts to the hotel industry, analyzing specific market trends, the unique characteristics of service branding, and the strategic steps required to build a distinct hotel brand.
3 Conceptual Framework: This section defines customer loyalty, distinguishing between different levels of repeat behavior and outlining theoretical approaches to achieving genuine emotional attachment.
4 Establishing Customer Loyalty: The final chapter analyzes consumer behavior and the customer buying process, evaluating how specific loyalty elements like satisfaction, image, sympathy, and trust are strengthened through effective branding.
Keywords
Brand Management, Hotel Industry, Customer Loyalty, Service Branding, Brand Identity, Brand Equity, Consumer Behavior, Brand Culture, Internal Branding, Service Quality, Brand Image, Customer Satisfaction, Competitive Advantage, Positioning, Loyalty Programs.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis explores the application of brand management principles within the hotel industry, specifically focusing on how these strategies can be used to achieve and sustain customer loyalty.
What are the primary thematic fields covered?
The work covers brand theory, the unique challenges of service branding, the impact of hotel employees on brand delivery, and the psychological drivers behind customer loyalty in the lodging sector.
What is the main research objective?
The primary goal is to adapt general brand management concepts to hotel services and to investigate the cause-and-effect relationship between branding and establishing long-term customer loyalty.
Which scientific methodology is utilized?
The work employs a theoretical and conceptual framework, analyzing literature on brand management, consumer behavior, and service marketing to synthesize guidelines for hotel branding.
What topics are discussed in the main part of the work?
The main body treats the conceptualization of brands, the specific difficulties and opportunities in branding hotel services, the essential role of employees as brand ambassadors, and the psychological chain leading to customer loyalty.
Which keywords best characterize this research?
Key terms include Brand Equity, Hotel Branding, Customer Retention, Internal Branding, Service Quality, and Competitive Advantage.
Why is internal branding considered critical for hotel success?
The author argues that because hotel services are delivered through personal interactions, staff members are the critical link between the brand promise and the guest experience; therefore, internal culture must align with the brand identity first.
How does the author explain the difference between retention and loyalty?
The author distinguishes between behavioral retention (often driven by loyalty programs or lack of alternatives) and genuine emotional loyalty, which requires a psychological commitment and preference beyond simple repeat purchase behavior.
- Quote paper
- Jessica Salver (Author), 2005, Brand Management in the Hotel Industry and its Potential for Achieving Customer Loyalty, Munich, GRIN Verlag, https://www.grin.com/document/137288
