Battle of the brands –
adapting to traveller demands.
WITH the goal of
increasing their market
segmentation, hotel
groups are introducing multiple
branding strategies with
distinct products for different
types of customers – Hilton
Worldwide encompasses 12
brands, Starwood Hotels and
Resorts has nine, Hyatt has
nine and Marriott, owner of
the local Protea chain, has a
considerable 18.
Multiple brands are the
hospitality industry’s response
to a growing need for
customised travel experiences,
particularly corporate
travellers, says Jan van der
Putten, Hilton Worldwide
vp of operations: Africa and
Indian Ocean and gm of Hilton
Sandton. This, complicated by
varying income brackets, has
led to hyper segmentation.
Brands were initially based
on price – luxury to budget.
However, more recently
lifestyle has become the
central focus as hotels
strive to attract different
demographic groups such as
baby boomers, millennials,
etc. Lifestyle brands have
exploded into the market and,
according to Jan, these brands
will continue to grow with more
millennials travelling.
While acknowledging that
younger generations are
more inclined to aspire to
lifestyle brands with their
philosophy of ‘I work to
travel’, Peter Schoeman,
the City Lodge Hotel Group’s
divisional director of sales
and marketing, says the
market will dictate whether
more lifestyle brands will be
needed. City Lodge’s four
brands, based on grading
(Road Lodge – one star;
Town Lodge – two star; City
Lodge Hotel – three star; and
Courtyard Hotel – four star),
were recently “refreshed” for
clearer differentiation. The
group plans to evolve these
rather than introduce new
ones.
Style vs service
Protea Hotels, now owned by
Marriott (and slotted under
Marriott’s Modern Essentials
group of brands), was one
of the first local chains to
establish a lifestyle brand,
namely Protea Hotel Fire
& Ice!. Group marketing
manager, Nicholas Barenblatt,
says: “Millennial travellers,
as well as the new emerging
market, are looking for a
hotel experience that is
extraordinary in the sense that
it goes beyond the standard
hotel experience in terms of
design, food and beverage
concepts, entertainment lineup
and service culture. At the
end of the day, the lifestyle
brands that will succeed in
this category are the ones
that ensure they differentiate
on service as opposed to
merely the physical style of
their hotels.”
The Birchwood Hotel and
OR Tambo Conference Centre
has discerned a clear need
for services that facilitate
business travel. “Companies
are placing extra pressure on
employees by squeezing a twonight
itinerary into one night.
Hotels need to accommodate
these needs – travellers will
no longer accept queues at
reception, for example,” says
director Kevin Clarence. The
hotel has responded with the
introduction of the Silverbirch
Hotel, situated in a separate
area on the Birchwood
property, which offers services
catering to the “discerning”
business traveller.
Some hotel groups, however,
reject the strategy around
multiple identities, adopting a
‘keep it simple’ approach. The
Preferred Hotel Group, a global
provider of sales, marketing
and distribution services
to 650 independent luxury
hotels, recently announced
its move away from a multibranded
business model to
one master brand, Preferred
Hotels and Resorts. The group
has, however, grouped its
properties into five collections,
“defining its hotels based
on experiences rather than
brands or stars”.
Wayne Hill, gm of hotel
and resort operations for
Peermont’s Emperors Palace,
believes that, in future,
“differentiation will not come
from lifestyle brands but from
the ability to deliver on our
promises consistently, with the
‘experience’ in mind”.
Consistency is all important
in the management of brands,
and extends from the physical
appearance of the property
to every level of service and
product. Delivering on brand
promises and keeping brands
relevant is a considerable
challenge for hotel groups.
The ‘task’ mentality that
prevails in hospitality service
must be replaced with an
‘experience’ mentality, says
Wayne. Employees must be
trained for success, retained,
and engaged with the higher
purpose of the organisation.
Peter agrees that consistency
demands staff training and
commitment to service
excellence.
What’s
ahead?
ahead?
What corporate travel
trends can we expect
to emerge in the next
five years or so? Hotel
representatives made the
following predictions:
Increased use of mobile
devices to access hotel
services, mobile checkins
and mobile payment.
All selling to take place
on apps.
More savvy guests
who conduct extensive
research online.
A growing influence
of peer-on-peer
recommendations.
No queuing. Loyalty
programmes will include
priority pass systems,
hotels will have to
ensure sufficient data to
facilitate faster checkins
and install ‘honesty
systems’ for check-out.
The increasing
prevalence of facilities
and amenities geared
towards independent
female business travel.
More demand for
healthy food and dining
options in line with
health trends at the
time.
A requirement for
exceptional standards of
cleanliness and hygiene.
Increased demand for
sustainable product and
hotels that reduce their
carbon footprint.
What travellers want
LEADING hotel groups have noticed a
number of trends in business traveller
demands and behaviour. Here are a
few of the most prominent ones.
Technology
Technology rears its head in just
about every sphere of hotel guest
interaction, from the reservation
process where there is growing
emphasis on last-minute availability
and rate parity, to efficiency of service
delivery before, during and after the
guests’ hotel stay, to demand for
speedy WiFi and connectivity across
multiple devices.
Fast, easy reliable access to the
Internet has become imperative,
says Sigal Geva, HR and marketing
manager at Premier Hotels & Resorts.
“Hotels need to provide not only a
great room, great shower and great
culinary journey, but must also ensure
hassle-free connectivity.
Design
Design increasingly features as a
requirement. Nicholas Barenblatt
at Protea Hotels claims this is
created through clever design
of bedrooms and public spaces,
to create a social atmosphere
and vibe.
A range of MICE offerings, such
as dedicated business lounges
and meeting space, has become
essential for business travellers,
adds Hilton’s Jan van der Putten.
Service
“Guests don’t want to queue, wait
or be put on hold,” says Peermont’s
Wayne Hill. Further, they want only
one point of contact for conflict
resolution with managers who
follow through with problems until a
resolution is found.
Short reservation lead times,
shortened stays, ease of booking and
increasing price consciousness are
observed by the City Lodge Hotels
Group, says Peter Schoeman.
Mega conference centre
opens in Malawi
ON May 1, the Umodzi Park
precinct and the President
Walmont Hotel opened in
Malawi’s capital of Lilongwe.
Peermont Hotels, Casinos and
Resorts will manage the hotel
and the Umodzi Park precinct,
which aim to attract conference
delegations within the continent
and boost Malawi’s tourism
sector.
The 130-room hotel includes a
gym, health spa, lobby bar, lounge
and restaurant. The Umodzi
Park precinct can seat 1 500
conference delegates.
At the launch, Peermont ceo,
Anthony Puttergill, said: “The
opening of Umodzi Park is a
proud moment for Peermont. It is
the culmination of a long journey
with our partners in Malawi –
both the Malawian Government
and the Umodzi Board.