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Staying On Brand

Staying on brand

Why so many hotel brands within a group? This article takes a look at the big groups’ relentless roll-out of new hotel names. 

“Quirky brands like Moxy… how you check in, the property management system, the interaction with the hotel – that is all a key part of innovation, rather than the brand itself. Accor’s investment in customer experience is a good example: and that underpins loyalty, they are not just relying on the number of points a customer can get.

Loyalty points are a double edged sword: the net value of points that have not been redeemed is an eye-watering amount and hotel companies can plug that exposure by opening properties in key locations, where travellers can redeem their loyalty points. It does not hurt the net return of the portfolio. This way cannibalisation is not an overriding concern.” Raj Sachdave, Managing Partner – Black Box Partnerships.

Read the full article by Catherine Chetwynd on page 64 here.

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