siliconindia | | March 20208FACTORS INFLUENCING BRAND EQUITY IN THE HOSPITALITY INDUSTRYBy KB Kachru, Chairman Emeritus & Principal Advisor - South Asia, Radisson Hotel Grouphe hospitality industry is growing more than ever before, with a wide range of factors influencing brand equity. Guests now have an almost limitless range of accommodation options, from big chain hotels to local brands & independents, and even vacation rentals and homestays.This should be excellent for the consumer, but this market congestion can also lead to confusion. It is estimated that there are more than 90 million hotel rooms (primarily from unorganized sector) in India alone, and according to STR, at least 25,000 units are currently under construction nationwide in the organized sector, and lots of crowding is taking place in the unorganized sector. The said varied choice simply can't be processed by the human brain; so we need technology to help us.It is estimated that the average traveller visits over 20 different travel websites before making a booking decision. As a hotelier, you have two choices; you can either try to stand-out from the crowd and appeal to customers, or you can try to take your customers away from this battleground altogether.There are several ways a company can achieve this:Create a Club Mentality: The best way to cut through the confusion is by offering a sense of exclusivity. Creating a club mentality will help attract guests who believe they are receiving something that others are not ­ a special price, an added extra, a personalized offer. Online travel agencies have been very successful at this; for example, the Secret Escapes website or Hotels.com's `Your Secret Price' feature both play on the concept of mysterious hidden benefits that only you can access, while MakeMyTrip's `MMT Assured' icon is intended to inspire confidence among customers.This all relates to guest loyalty programs. Some say that loyalty in the travel industry is dead ­ that customers now have so much choice that they are not loyal to one brand. I disagree. In fact, I believe that loyalty will grow even stronger in the coming years, as guests turn to their chosen, trusted brands to help them make confident choices. In return, brands will reward guests with highly personalized stays, as discussed below.Innovate & Personalize the Guest Experience: I would like to give an example of how innovation and personalization can drive competitive advantage. About a decade ago, a small upscale Asian hotel brand with properties in India took a fresh look at what guests actually wanted. It started allowing guests to pre-stock their room with their favourite teas, beers and chocolates. They also offered guaranteed 24-hour stays from the time Having over 40 years of leadership experience in both public & private sectors, Kachru has held key positions at Radisson Hotel Group and Carlson Rezidor Hotel Group. He also serves on the boards and advises various Government Tourism & Industry bodies such as CII, J&K Tourism, and Skill India, amongst others.Tin my OpinionLoyalty will grow even stronger in the coming years, as guests turn to their chosen, trusted brands to help them make confident choices
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