The Relevance of Brand Relevance

May 31, 2020 •

6 min reading

Brand Relevance in Hospitality

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Brand relevance refers to the degree to which a brand remains meaningful and compelling to its target audience. In the hospitality industry, this has traditionally meant trust, recognition, and a consistent guest experience.

Nowadays, as travelers prioritize experiences, aesthetics, and values, the way we define and build a brand is changing. The attractiveness of the consistency and peace of mind that traditional brands have promised are coming into question.

With that considered, it's worth questioning whether brands are really becoming irrelevant or if they've simply taken on a more complex meaning.

This article explores how shifting consumer behavior is challenging traditional brand thinking, whether legacy hotel brands are losing ground, and what it takes to build a brand that stands out in a market driven by individuality.

The Rise of Anti-Brand

The hospitality industry, where brand loyalty was once driven by habit and familiarity, is now under pressure. Traditional markers of brand success are no longer enough to maintain relevance.

For decades, brands served as a promise of consistency and trust. In fact, the rise of global hotel chains was rooted in the idea that guests would receive the same experience no matter where they traveled.

This standardization offered familiarity and convenience, which became the cornerstone of brand value in hospitality.

Cookie-cutter hotels were quite literally built on this model. From decor and service protocols to dining and amenities, everything was designed to replicate the same feel across continents. And for a long time, it worked.

But today, the value of brands has become a contentious topic. While hotel giants like Marriott and Wyndham continue to dominate by scale, the rise of the anti-brand movement and growing sentiment that large hotel chains feel "boring" suggests a shift.

Consumers increasingly trade predictability for uniqueness, they no longer just want safe and familiar; they want fresh, inspiring, and authentic.

From Security to Obscurity?

A 2023 survey from Expedia Group found that 80% of travelers now read reviews before booking a stay. It’s no surprise, then, that online travel agencies (OTAs) have become the preferred booking channel for many.

For consumers, OTAs provide more choices and greater price transparency. For hotels, however, this shift has come at a cost: the importance of having strong brand recognition has diminished.

A high rating and a prominent listing on the first page of Booking.com or Expedia may now carry more weight than the hotel name itself.

At the same time, the rise of “experiential design” has moved aesthetics to the forefront. In the age of Instagram and TikTok, how a hotel looks and feels can have a greater influence on consumer behavior than any brand affiliation.

As travelers chase unique environments and share-worthy moments, the visual and emotional experience often trumps traditional brand loyalty.

This growing focus on individuality and personalization helps explain why boutique hotels are seeing faster growth and commanding higher rates than many of their branded counterparts.

Commoditization and brand fatigue have crept into large chains, which struggle to differentiate beyond their scale.

The increasing popularity of soft brands reflects this shift. These collections of independent-style properties offer distinctive design and experiences while still adhering to some brand standards behind the scenes.

Guests appreciate the invisible assurance of quality without the overt messaging that tells them exactly what to expect.

As major hotel companies lean into this “brand without a brand” approach, it’s clear the industry is rethinking what consistency means. Rather than enforcing uniformity, the future of branding may lie in empowering individual properties to express personality within a trusted framework.

Or Is It Just a Tougher Market?

In addition, some may argue that the generations of today are more brand averse, although the track records of companies like Starbucks and Apple prove otherwise.

However, the better explanation seems to be that the younger generation is more willing to explore new brands than stick to the tried-and-tested. But this does not necessarily mean that they are less brand loyal.

Rather, they are more selective in who they pledge their allegiance to, as they seek brands whose values resonate with theirs.

Consequently, branding is no longer simply about the logo, but also the story it tells and the values it represents. The concept of reverse branding has been borne out of this need for brands to “prove their worth”.

It’s a principle that many successful brands take to today, creating a strong brand that draws customers towards them, instead of trying to woo customers themselves.

By espousing values that speak to their audience, brands like Aman and CitizenM have managed to amass fans around the world and keep them coming back, without even needing a loyalty program.

Therefore, rather than saying that brands are becoming less relevant, conversely, brands are perhaps more relevant than ever.

The difference is that it now takes much more detailed planning and curation to craft a meaningful brand that can capture an audience at a time when choices are plentiful.

The New Rules of Brand Relevance

If Apple were to build a hotel tomorrow, what would you imagine it to be like? High-tech, sleek designs, (and expensive) are probably some words that would come to mind. And what if one of the major hotel chains were to begin producing smartphones?

Many hotel companies today sell their brands on stunning hotel designs and their ability to deliver service excellence, but how truly differentiable are brands?

The burgeoning of hotel brands has meant that the divide between each one has inevitably become less distinct; the top 5 hotel brands by room count alone boast a repertoire of almost 100 different brands.

To call a brand entirely unique would be near-impossible. After all, there is only so much beautiful designs, over-the-top amenities, and good service can do for a brand.

Instead, as brands like 25hours and Zoku have demonstrated, a compelling brand story is key to capturing fans, along with fresh and dynamic energy that is consistent throughout the brand image.

Next, the roots of hospitality lie in evoking emotions; we appreciate a good service experience because it makes us feel something. So, what if we used our guests’ senses to create meaning and induce loyalty?

The Ritz Carlton plays on our sense of smell with specially crafted fragrances at its individual properties, while the Music Concierge produces bespoke soundtracks for luxury hospitality and retail establishments, to charm their visitors into coming back.

Done right, leveraging the power of the human senses could inspire new meanings for brands.

As research has shown, nostalgia marketing is a potent tool for brand marketing; similarly, using the human senses could help you to subtly capture and retain your market without the flashing signs and neon lights of in-your-face advertising.

Rome wasn’t built in a day, and neither are brands. Greater choices and higher purchasing power have left control in the hands of consumers, who increasingly seek brands they can identify with.

If Apple were to launch a hotel brand tomorrow, you would probably have an idea of what to expect, and it would likely see throngs of customers flocking to try it out (because it’s Apple) and that is the power of a brand.

All In—Or Fold?

As consumers continue to hunt for experiences that are off the beaten track, how relevant a brand remains will hinge on its ability to live up to its purported standards.

Brands which fail to prove themselves “worthy” may sit among the ranks of those still trying to charge a premium for their brand name, though eventually, many will likely fall victim to “sort by price”.

With that said, this does not mean that hotels without a strong brand are doomed to fail. Rather, a clear choice should be made between investing into building a brand, or simply providing the right mix of service, amenities, and price (i.e. offering value-for-money).

The strategy, it seems, is to go all-in and make your brand stand for something, or to fold your hand and compete on price.

There certainly still is a market on either side of the course, but nobody is interested in paying for tired, lackluster brands anymore, so if you’re going to do it, you’d better make it worth it.

Written by

EHL Alumna (2021), Assistant Vice President, Hotel Financing at Aareal Bank AG

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