How to benefit from joining a brand in 2016
In a sector set to boast the world’s largest hotel company thanks to that Marriott-Starwood merger, branding has become more competitive than ever. This means that properties thinking about joining a brand have more leverage and benefits to gain than they may have done several years ago. Not only are the big mega-brands vying for your attention but there is a slew of smaller, newer, more localised brands also trying to sweep you off your feet. Why is this?
Power in numbers
One of the most critical things independent and branded properties all have in common is a somewhat forced relationship with OTAs. Incentivise all you like, guests will continue (at least in the short-term) to check prices on Booking.com and TripAdvisor. Large brands may sometimes have the advantage of being able to negotiate with OTAs because they have the numbers. It doesn’t take much to realise that losing the business of a company with 200+ hotels is going to put more of a dent in an OTA’s bottom line than the loss of a small independent hotel who’s gone rogue. If that hotel was part of a big brand, that brand may have been able to negotiate lower commissions on their behalf so they wouldn’t need to have gone rogue in the first place.
The other pretty obvious benefit relating to bookings, is that larger accommodation brands often have fairly successful strategies in place for increasing direct bookings. While guests might not think to check the website of a niche property to see if there are any benefits to booking direct, most people tend to know that big brands offer free wifi or complimentary items to whoever books direct. Marriott, for example, ran a huge campaign this year titled ‘it pays to book direct’. Because larger companies have the resources to bring out fancy mobile apps and loyalty cards.
This is not to say that it is impossible for an independent provider to win the game of OTAs! With the right social media savvy, marketing ingenuity and some very vocal guests, any property could become the bell of the direct bookings ball. The hurdles are just that much greater when you are going it alone because social media savvy and marketing ingenuity are not things that can always be grown organically, they cost money. From outsourcing and training to online campaigns and in-house incentives, there are lots of outgoing costs involved that a big brand can much more readily afford.
Speaking of loyalty
Being part of a branded network gives managers the opportunity to team up with or work alongside like-minded others. Sharing tips and tricks with properties similar to your own that are scattered across the country but share a common interest in being part of the same brand, is a luxury when you are used to viewing your neighbours as the competition.
For guests as well, the trust element is a huge one when it comes to choosing a place to stay. If a guest has had an amazing experience at a branded hotel in Europe, for example, they’re likely to seek out that same brand when planning a trip to Sydney, which gives Sydney-based members of that brand a unique in-road to this guest that they wouldn’t otherwise have. Large accommodation companies are also renowned for their loyalty schemes, which make much more sense for business (and leisure) guests who like the idea they can use their scheme benefits in a wide range of property locations. So another clear benefit for providers is access to that pool of loyal guests.
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