Aureli forlani pencarelli_sgbed-ancona-2014

350 views

Published on

Brand management in the hotel industry: from company to network brand. Opportunities and limits of networking for small-sized hotels.

1 Comment
2 Likes
Statistics
Notes
No Downloads
Views
Total views
350
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
4
Comments
1
Likes
2
Embeds 0
No embeds

No notes for slide

Aureli forlani pencarelli_sgbed-ancona-2014

  1. 1. Brand management in the hotel industry: from company to network brand. Opportunities and limits of networking for small-sized hotels Aureli S. - Forlani F. - Pencarelli T. Ancona – 17/07/2014 THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT
  2. 2. Agenda 1. Background and objectives and of the study 2. Literature review 3. Methodology 4. Findings from empirical analysis 5. Concluding remarks THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT
  3. 3. Background Importance of intangibles resources in the tourism sector and the hotel industry in particular (Pencarelli and Gregori, 2009; Krambia- Kapardis and Thomas, 2006; Nemec and Mihalic, 2007; FitzPatrick et al. 2013). Brand is a key success factor and source of competitive advantage which leads to revenue (O’Neill and Mattila, 2004, 2010; Hong- bumm Kima and Woo Gon Kim, 2005; O'Neill and Carlback, 2011). Doubts about SMEs’ capability to design and manage a brand (is brand management a too complex activity?) Italian SMEs collaborate through consortia, associations, product clubs and network contracts to attract customers; sometimes creating brand alliances (Aureli and Forlani, 2013). THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT
  4. 4. RQ1 – Do small-sized hotels consider hotel brand a key success factor? RQ2 – Do small-sized hotels devote attention to brand management? RQ3 – What’s the role of hotels’ networking strategies in brand management? Research Questions THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT
  5. 5. Literature review: Brand and Brand Management Brand is a name, sign, symbol, etc. used to identify the seller’s products and distinguish them from those of its competitors (Kotler and Scott, 2002) which embodies tangible and intangibles attributes that are relevant for the customer Brand management refers to the process by which the brand is laden with meanings and the combination of actions carried out to maintain and improve the brand’s reputation and distinctiveness (Pratesi and Mattia, 2006) : - Design of the brand identity - Brand positioning - Brand Marketing and Monitoring - Brand architecture THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT
  6. 6. Literature review: Brand usage in tourism Attention on how the hotel brand relates to the brand of the chain, association or network the company belongs to and to the brand of the destination (Pencarelli and Splendiani, 2008; Pencarelli, Betti and Forlani, 2009; Aureli and Forlani, 2013). When territorial/place brands are consonant with the local business actors’ values and brands, the effectiveness of the marketing policy of these businesses augment and the potential benefits achievable increase THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT
  7. 7. Literature review: Networking strategies among tourism actors Italian hotels are used to collaborate but mainly informally or through consortia, associations and product clubs; whereas abroad we can find large multinationals and multiple brand affiliations (Bailey and Ball, 2006; Lomanno, 2010) One of the key benefit of brand affiliation is obtaining a strong brand which translates into higher occupancy rates deriving from customers attracted by the hotel chain brand’s promises However individual hotel owners need to be sure that the chain’s branding strategies are appropriate for its property (O’Neill and Mattila, 2006) -> brand consonance THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT
  8. 8. Methodology Focus on the Province of Rimini Identification of formal networks through the national dataset of the Chambers of Commerce -> one network contract named “Made in Rimini-Holidays” formed in May 2013 by three hotel consortia (network of networks) “Made in Rimini-Holidays” groups more than 100 hotels, which represents about 10% of the total lodging offer. Random selection of three hotels for each consortium Face-to-face, semi-structured interviews with hotel owners/mangers at each hotel premises Topics investigated: HOTEL BRAND; BRAND MANAGEMENT; NETWORK PARTECIPATION THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT
  9. 9. Hotel characteristics THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT Selected hotels : - are exclusively three- and two-star hotels (50% each) - run by owners - small-sized: with less than 50 rooms (63%) or a number of rooms comprised between 50 and 100 (37%); employing less than 20 people - targeting mainly Italian tourists (foreigners represent 12% of total guests) The three consortia are: - “Hotel Tipici Riminesi” (Typical hotels of Rimini) which groups hotels located in some fractions of Rimini aiming to promote themselves and the territory where they are located emphasizing the local traditions and culture, make joint purchase and offer staff training to the associated hotels - “Torre Pedrera Hotels” which groups hotels located in a fraction named Torre Pedrera aiming to promote this specific area by providing information about lodging firms, public services and events to both tourists and inhabitants - “Piccoli Alberghi di Qualità” (Small Quality Hotels) which groups hotels located in Rimini and other nearby cities (Riccione, Cattolica, Misano) aiming to improve their efficiency and combine it with the local culture of hospitality (small family-run hotels with high quality standards)
  10. 10. Findings THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT 11111113Hotel brand popularity (international) 21111114Hotel brand popularity (national) 23224454Hotel brand popularity (local) 54554545Impact of financial resources on brand popularity 43443533Brand as key success factor RQ1 – Do small-sized hotels consider hotel brand a key success factor? 5-point Likert scale (1= strongly disagree; 5= strongly agree) - Small hotel owners consider hotel brand an important key success factor whose popularity strongly depends from the amount of financial resources invested. - However, hotel brand is scarcely recognized sometimes even in the local area of Rimini.
  11. 11. Findings THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT 5,00%20,00%5,00%2,50%2,50%7,00%3,00%3,00%Financial investments in promotion (% of annual turnover) Content management on FB, Twitter, Google+; partecipation to the consortium's websiste and other local tourism portal (i.e. Riminibeach) ; seasonal greatings; trade fair participation Content management on Hotel website, FB, creation of newsletters; limited advertising on newspapers Advertise on free press; content management on Hotel website, FB, Twitter, Pinterest, Google+; participation to the consortium's website and local tourism portals (i.e. Riminidamar e) Content management on Hotel website, FB, Flickr, Twitter, Youtube; promotion on the local free press and internet portals Renewal of the Hotel website; presence on the tourism portal "Rimini beach"; presence on OTA (Venere.com, Booking.com) , FB, Twitter Theatrical setting, use of mascot representing the summer; content management on Hotel website, FB, Pinterest, Google+; seasonal greetings cards; trade fair participation Content management on Hotel website, FB, Twitter; presence on Travel web site (Tripadvisor & OTA); advertising on newspapers; trade fair partecipation with the consortium Content management on Hotel website, FB, Youtube; trade fair partecipation (alone and with the consortium) Activities carried out to support the hotel brand Systematic use of logo in hotel communicati on; payoff: "A small jewel just a few steps from the sea" Registered trademark; familiar and easy to remember name; payoff: "Your house by the sea" Revision of the logo to evoke the sea and summer (inserting a boat and the sun) Revision of historical name to communicate the concept of beach and the sea Revision of historical name to emphasize hotel's location by the sea Improvement of historical logo and hotel name from a brand management perspective; seasonal slogans NoRevision of the historical name in the phase of requalificatio n and enlargement of the hotel Brand identity system (Logo, Naming, Payoff) YesYesNoYesNoYesNoNoCreation of a brand identity to communicate the hotel RQ2 – Do small-sized hotels devote attention to brand management?
  12. 12. Findings THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT - Creation of a brand identity is rare: three hotels declare to have created it, but they are not always able to describe its components (which are absent) nor they have identified the intangible attributes associated to the brand; moreover hotel name have all historical roots linked to personal owners’ experiences - Management activities are limited to web marketing, social network communication, advertising on traditional media and internet. They are not implemented with the aim to exploit hotel brand but they are more similar to traditional promotional activities.
  13. 13. Findings THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT Rimini is a large city; the fraction indicates customers that the hotel is walking distance from the beach Emphasize hotel's location in the city of Rimini and not in any of its fractions Rimini is the hotel location Rivazzurra because it is the specific hotel's location Rimini is the hotel location Rimini has a greater visibility while Torre Pedrera is small and not well known To highlight the area around Rimini and its characteristi cs (tranquillity ) Torre Pedrera is a very quiet place and its image is more consistent with the hotel's target Reasons for the choice of the territorial brand Miramare - fraction of Rimini RiminiRiminiRivazzurra - fraction of Rimini RiminiRiminiTorre Pedrera – Rimini – Romagna's Coast Torre Pedrera – Rimini's Coast Territorial (place) brand associated with the hotel Piccoli hotel di qualità Piccoli hotel di qualità Hotel Tipici Riminesi Hotel Tipici Riminesi Hotel Tipici Riminesi Torre Pedrera Hotels Torre Pedrera Hotels Torre Pedrera Hotels Network participation Hotels’ brand architecture does not emerge as the outcome of an analytical process
  14. 14. Findings THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT Creating a strong network brand is not a priority in hotels’ networking strategies. Nor hotels seem to question about brand coherence (with one exception) No, the two brands are placed side by side No, high investments are needed to achieve this effect No, the two brands are placed side by side No, however it could be a benefit if it works like for hotel chains No, however the network brand represents an opportunity NoYesYes, if the network brand functions it will prevails (like for hotel chains) In customers' perception, the network brand replaces/could replace the hotel brand 21111131Network brand popularity (international) 21111232Network brand popularity (national) 33234552Network brand popularity (local) Yes concept of co- branding NoNoNoNoNoNoNoChanges in brand management derived from/after the collaboration To inform customers about the quality of small hotels by using the network brand; Share experiences and problems To increase and communicate hotels' quality; to strengthen the whole category of small hotels in Rimini To increase the capacity of communicati on; Cost savings; Create activities and services for guests (guided tours) To differentiate from competitors; Create events and activities for clients; Reduce costs First to enhance the territory, its traditions and products; Second to participate in trade shows; Cost savings Cost saving; Communicati on and trade fair participation; Use of the booking portal Promotion and commercializ ation (with on-line booking); To liven up the fraction of Torre Pedrera Cost saving, promotion and marketing; More recently also internationali zation Reasons for joining formal networks with other tourism enterprises RQ3 – What’s the role of hotels’ networking strategies in brand management?
  15. 15. Findings In hoteliers' opinion the network brand does not increase their recognizability nor it could replace individual hotel brands in the customers’ mind. What occurs for hotel franchising chains is considered impossible by the majority of respondents because it would require too much financial resources and it is believed to works only for proprietary chains. Hotels communication and hotel brands mainly leverage on the brand of the territory where they are located underestimating the opportunities deriving for synergies with the network brand. In conclusion there are several challenges for small-sized hotels at both the organizational and network level and several potential improvements to achieve. THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT
  16. 16. Limitations & Future research Results are limited to the case studies here analyzed and the local area investigated. Future research steps will involve a greater number of hotels and possible comparisons with medium-sized and large hotels of the same tourism destination could be help identify possible difference due to hoteliers’ personal mindset and managerial approach. THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT
  17. 17. Info and contacts: Ancona – 17/07/2014 THE 13th INTERNATIONAL CONFERENCE OF THE SOCIETY FOR GLOBAL BUSINESS & ECONOMIC DEVELOPMENT selena.aureli@unibo.it tonino.pencarelli@uniurb.it fabio.forlani@uniurb.it

×