Challenges and Opportunities Facing Brand Management in the Lodging Industry

Abstract

Brands are at the heart of marketing and business strategy. If a company’s offer is perceived to be the same as those of the competitors, then consumers will be indifferent and will choose the cheapest or most accessible. The purpose of marketing is to create a preference for the company’s brand. If customers perceive one brand as superior, they will prefer it and pay more for it. Successful brands create wealth by attracting and retaining customers. When a company creates this type of customer preference and loyalty, it can build a strong market share, maintain good price levels, and generate strong cash flows. The notion that a hotel’s brand contributes significantly to the property’s market value is supported by an analysis of nearly eleven hundred hotel transactions over the past fifteen years.