In recent times it has been noted that branding is fast becoming one of the five big divisions in which companies are investing a lot of their research and development dollars into. Hospitality branding is becoming one of the top priorities in the industry and when done correctly can have a great impact on the shareholders of the company. In 2006, over $475 billion dollars, a fifty one percent increase from 2005, was spent by consumers at Kiosks and self service machines and the figures are expected to reach $1.2 trillion by 2009.
The question arises however, “is branding just an important strategic option or has it become an indispensable strategic imperative?” An independent hotel with a good management team, in a prime location, and accommodates online booking, can give a chain hotel just as much competition.
Companies have to be able to differentiate themselves from each other, to do this they should invest in programs that are difficult for the competition to replicate, which in turn will land them the notch above the competitors.
Companies today are not depending on investment analysis, instead they are following the leads of the airlines, but by doing so they are losing critical information on their perspective and present clients. By investing in such programs, they have to figure out which segment is going to be affected, would they appreciate the addition of the new self service technology? Which group will be excluded? How far and how fast should the product be introduced to the customers?
When the research was completed, it was found that the companies were focusing on the firm benefits, such as potential cost savings, increased customer satisfaction, labor reduction, and increased operations efficiency. Instead they should be focused on the customer related benefits, such as reduce waiting times, location benefits, greater privacy and added convenience. After all the value creating capabilities, the staff should be able to deliver consistently each and every time a guest stays at the hotel.
I think that this is a great way to go and more hotels should spend the time and money it takes to get to know the clients and cater to their needs. Not everyone likes to stand in lines, I am one of them, if the line is too long, I will find someone else to give my business to. I appreciate the speed and accuracy of a self service check out, I do not have to deal with the staff and I can get in and out as quickly as possible. Efficiency and effectiveness and two of the things I look at when booking with a hotel, also the level of customer satisfaction and the services that are provided that makes me feel like a valued guest.
Dickinson, C (2006, October 26). Self-service Technologies: The
Affect on Hospitality Branding. Retrieved February 24, 2007.
from , vice president, client industry executive with EDS’ global
travel and hospitality industry segment.
Web site: http://www.hospitalityupgrade.com/_magazine/
magazine_Detail.asp?ID=42
