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Too Much of a Good Thing

February 27, 2019

 

With 270 brand trademarks worldwide thus far Hilton just launched its 17th Brand focused on meeting-and-events infused with the latest technology.  Each hotel will have a minimum of 500 guestrooms and 75 sq. ft. per key of flexible meeting and event space. But I have to ask myself is the proliferation of brands in the hotel industry a good thing and is each distinct brand able to capitalize on their target market, or is it too much and are guests even able to keep track of the "unique competitive market positioning" of each brand?   I would venture to say that most guests can't even name half of Marriott's 30 brands or even half of Hilton's 17.  I believe the lines have become so blurred that guests have become increasingly indifferent to hotel brand selection and the driving force of choosing hotels  is no longer brand loyalty but something entirely different. The Gallup analysis shows about one in every five hotel guest are brand loyal and of those that are loyal to brands one-third of them are luxury property guest.   While of the economy hotel guests only 12% were loyal to any brand.  The remaining segments were  heavily influenced by others whether it be friends, family or reviews. Brand loyalty is becoming a thing of the past and hotels will have to find new was to keep gusts coming back, because guests are choosing hotels based on price,  location, quality and yes reviews.  So you be the judge is 271 brands too much of a good thing?    

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