The importance of Standards and Branding for Small … presentation The...Brands in the Hotel industry today are ... THE FOUR CONSTRUCTS OF CUSTOMER-BASED HOTEL BRAND EQUITY HAVE ...

THE IMPORTANCE OF STANDARDS

AND BRANDING FOR SMALL

HOTELS SUB–SECTOR OF THE

REGION

PRESENTATION

The importance and impact of Standards and Branding in general for the small hotel sub-sector

The Brands and Standards of the STEP Programme

Credible Brands and Standards for small properties

Sharing of recommendations based on finding of from the Report Updating Brands and Standards, Small Tourism Enterprise Network (STEN) Project July 2011

INTRODUCTION

Hotels are expected to provide their guests with the best of everything

Small hotels in the Caribbean are aiming to provide the best service they can and the people factor will make the huge difference

It is crucial that the design of the hotel and service it offers, follow concepts of quality standards implementation.

MAINTAINING THE LEVEL OF

SERVICE THAT IS REQUIRED

through understanding guests’ expectations,

setting service standards to meet these expectations,

training the staff to follow these service standards,

guiding the guests’ experiences,

and identifying and closing service gaps.

WHAT IS THE VALUE OF

ESTABLISHING STANDARDS?

To determine the level of performance

required

And how that performance should feel to the guest.

Guests are seeking consistency and quality at the right price

STANDARDS

Standards act as a quality minimum not a steadfast rule

Standards create cohesiveness necessary to the survival of a hotel brand

Standards are critical in creating Brand Equity

Standards are hard to maintain but without them where would the brand be?

SOME CRITICAL AREAS

WHERE STANDARDS CAN BE

APPLIED Reservation services

Arrival services

Check-in

Evening housekeeping

Wake up call

Room service (ordering and delivery)

Check-out

Departure services

IMPORTANCE AND IMPACT OF

STANDARDS

Service standards should be set, implemented, and evaluated or DIM with the guests in mind.

These Standards also help give the guests an idea as to what they should be expecting from the small hotel

The service standards provide the staff with guidelines as to what they should be doing for their guests.

Standards help to identify and close service gaps.

THE SMALL HOTEL

Cottage

Villa

Bed and breakfast

Small resort

Inn

These hotels should hold a certain mystique that invites their guests to continually return

PULL FACTOR: QUALITY

STANDARDS

It is important that the service standards small hotels provide their guests meets or exceeds their expectations, by doing so, the guest will leave satisfied.

Standards are hard to maintain but without them the Brand would be lost

Standards act as a quality minimum not a steadfast rule

Standards are critical to maintaining Brand Equity

Standards create cohesiveness necessary to the survival of a hotel brand

THE CONCEPT OF BRANDS

BRANDING

The term branding has traditionally been used with the

promotion of products

•Modern day meaning “ to implant on the mind”

•American Marketing Association Definition

-“ A name term, sign, symbol or design, or a combination of

them, intended to identify the goods and services of one

seller or group of sellers and to differentiate them from those

of the competition.”

BRANDING DOMINANT TREND

IN THE HOTEL INDUSTRY

Branding/ re-branding can positively impact customer purchase preferences and intentions, satisfaction and loyalty and a firm’s financial performance.

WHAT IS A BRAND

The product or service of a particular supplier which is differentiated by its name or presentation

A brand is actually a promise given by the company to its consumer about what the product can give to the consumer.

HOTEL BRANDS

Travelers expect more than comfort and convenience

Looking for an experience that look and feel different from the traditional branded hotels

Era of Boutique Hotel- experience with members of the hotel staff e.g. A Caribbean small hotel

Effective branding strategies can increase customers’ satisfaction and strengthen customer loyalty, which in turn contribute to a company’s financial performance and as a result a potential source of strategic advantage.

IMPORTANCE AND IMPACT OF

BRANDING

A product brand is not only a name for that product or for a hotel. A brand will always be connected to a company’s identity which will remind the consumer about its performance.

VALUE OF THE BRAND

The value of a brand is based on the awareness of the brand, its quality perception, and overall customer satisfaction (Aaker, 1991).

Satisfied customers of a BRAND tend to buy more, be less price conscious, and to generate positive word-of-mouth, thus contributing to bottom-line profit

From the hotel owner’s perspective, affiliating with an appropriate brand with the correct position can allow them to leverage on the brand’s established name to increase awareness of their property and market value (O’Neill & Xiao, 2006).

This is especially useful if the hotel is rebranding in reaction to changes in market demand or market segment.

Effective hotel branding can also increase the level of reliability and risks associated with the hotel perceived by the consumer, and positively influence their consumption behavior as consumers will tend to purchase from brands they trust and are more familiar with (Bateson & Hoffman, 1999; Berry, 1999).

In turn, owners can enjoy stronger customer loyalty and charge higher rates for greater financial returns (Kayaman & Arasli, 2007).

Due to this intangible nature of the service “product,” consumers are “forced” to anchor their decision based on relatively dependable cues such as the firm’s image and reputation

Brands in the Hotel industry today are more than the concrete symbols associated with them…today they represent a lifestyle choice and create a whole new meaning system

Branding prescribe the look feel and function of the hotel

Brand create a psychological and emotional experience for the guest

THE FOUR CONSTRUCTS OF CUSTOMER-

BASED HOTEL BRAND EQUITY HAVE BEEN

IDENTIFIED TO BE

brand loyalty,

brand awareness,

perceived quality

and brand image (Aaker, 1991; Bailey & Ball, 2006; Prasad & Dev, 2000; Yoo & Donthu, 2001)

BENEFITS OF BRANDING

Introduces stability in the business

Helps guard against competitive imitation

Allows consumers to shop with confidence

Reduces marketing cost

Decreases operating cost

Increases referrals

Provides competitive advantage

Hotel operators should recognize that once they've developed a clearly defined brand, they need to work hard to maintain the standards and qualities associated with it.

CARIBBEAN EXPERIENCES

STEP

The Small Tourism Enterprise Program (STEP) was designed to provide assistance to small tourism enterprises and Hotels to enhance their competitiveness.

STEP provided training in

product and services delivery,

a mechanism to embrace international standards,

avenues for cost-effective marketing.

Updating and Revise The Caribbean Experiences Brand, under Small Tourism Enterprise Network (STEN) Project July 2011

MAJOR FINDINGS

STEP implemented activities and resources were off the radar and most tourism officials in place today were not familiar with the Project or its outputs

That it appeared that there was a waste of resources as stakeholders were not utilizing the resources already in place.

In several of the countries personnel are busy creating standards for the sector without the benefit of the standards produced under the STEP Programme

In terms of STEP project implementation

By the time the Caribbean Experiences Brand Website had been introduced and promoted, many of the smaller properties had already gone ahead and got their individual Web Sites done. There was therefore little or no utilization.

In most of the STEP Countries there was the need for real public/private sector partnership. The term was being applied but in actuality the partnerships were either weak or non-existent

RECOMMENDATIONS

An awareness, education campaign be launched to review/launch STEP/STEN activities – This could be a national campaign using peer leaders, testimonials, flyers and radio and television promotions. The Campaign must emphasize the evocation of a genuine Caribbean Experience.

That the Coordinator role be defined to ensure sustainability. Use of a performance based job description could be used to help to determine the coordinators that are assigned.

That the OAS puts a mechanism in place for performance management of the coordinators to include goals, communication, contact with stakeholders, quarterly reports etc.

A workshop is conducted for key stakeholders on the STEP resources and their uses e.g. Caribbean Experiences, The Innkeeper

38

STANDARDS AND BRANDING ARE PRINCIPLES FOR

ATTAINING

WORLD-CLASS STATUS

There must be a shared company vision

Management must do more than simply what is necessary

Managers must know how to play host to all people

The community must value the hotel

Culture must be seen as a resource

Human resources must be treated as assets

Training must be continuous at all levels

Communication must be systematic

The delivery system must meet the promises made by marketing

Details matter

Management must continuously find ways to improve the hotel’s image

CREATE THE BALANCE

THROUGH STANDARDS AND

BRANDING

Balance between marketing, operational procedures, and brand asset value in the small hotel industry sub-sector through great hotel management and leadership

Q AND A