Hotel Positioning: Marketing, Perception, Dollars Or Strategy?

Hotel Positioning: Marketing, Perception, Dollars Or Strategy?, Recommend Article Article Comments Print ArticleShare this article on Facebook2Share this article on Twitter1Share this article on Linkedin1Share this article on DeliciousShare this article on DiggShare this article on RedditShare this article on PinterestExpert Author Richard Brody
Have you recognized and noticed the tendency in the hotel industry towards rebranding, either within the same corporate umbrella or changing affiliations altogether? Since some of the largest hotel companies include numerous brands, each representing a somewhat different brand or niche, companies such as Hyatt, Wyndham, Starwood, Marriott, and Hilton, devote significant evaluative and financial resources determining what they consider the ideal niche that a particular property might fit into, and return the greatest financial performance. This is usually based on numerous factors, including facilities, condition (actual physical as well as perceptual), marketing dollars devoted, and the location, etc. This concept of hotel positioning and repositioning has become one of the most essential components of many hotel corporation's overall strategy.

1. These large chains generally own and operate only a few of their own hotels, while managing others, and licensing still other ones. Each chain determines for itself how to apportion its resources and where it wishes to place its primary emphasis. In addition, when a chain feels that a particular hotel property no longer fits the niche or scenario they intended, they must then determine whether it is a candidate for repositionary within its own corporate group, or whether they should rid themselves of that property. In the case of a corporately owned property, this means either selling or leasing (generally on a net - net basis) the property to another company or chain, franchising it instead of managing it itself, managing the property while either leasing or selling it, or repositioning it either upwardy or in a downward positioning within its own corporate family.

2. Obviously, the upper end or luxury/ deluxe components of this strategy require a far larger expenditure, with the anticipation and hope for a substantial return or essential payoff. Higher end hotels must spend more on continuous maintenance, upkeep, renovations, freshening, and outdoing other properties within its segment. This, therefore, requires an objective observation and evaluation of the true potential versus risk of that particular property. Often, we observe a supposed upper end facility that tries to maintain its niche but fails to properly invest and plan to remain in that position. The first omissions usually observed are little items, such as needed painting or minor maintenance, the toiletry package, and small items such as placing newspapers at a central point for pickup rather than delivered to the door. In addition, details like slight reductions in staffing, such as housekeeping, maintenance, hours certain facilities remain open, etc., should serve as a warning sign!

The better run and organized hotel companies make these determinations in an organized and seamless manner, without risking making rash decisions that might negatively impact their brand. It must be understood that this issue is both a complicated one involving many factors, as well as an essential one from a fiscal standpoint. Hotel positioning has marketing, perception, financial and strategic implications and key considerations.

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