Brand Roundtable

8/6/2019 Brand Roundtable

1/20www.chr.cornell.eduwww.chr.cornell.ed

Vol. 3, No. 6, June 2011

Cornell Hospitality Brand Management Roundtable:

Cornell Hospitality Roundtable Proceedings

Fresh Thinking about the Box

by Chekitan S. Dev, Ph.D., and Glenn Withiam


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Advisory Board

The Robert A. and Jan M. Beck Center at Cornell University

Cornell Hospitality Roundtable Proceedings,

Vol. 3 No. 6 (June 2011)

2011 Cornell University

Cornell Hospitality Research Summit

Proceedings is produced for the benet of

the hospitality industry by The Center for

Hospitality Research at Cornell University

Rohit Verma, Executive Director

Jennifer Macera,Associate Director

Glenn Withiam, Director of Publications

Center for Hospitality Research

Cornell University

School of Hotel Administration

489 Statler Hall

Ithaca, NY 14853

Phone: 607-255-9780

Fax: 607-254-2292

www.chr.cornell.edu

Niklas Andren, Group Vice President Global Hospitality &Partner Marketing, Travelport GDS

Raanan Ben-Zur, Chief Executive Ofcer, French QuarterHoldings, Inc.

Scott Berman, Principal, Real Estate Business AdvisoryServices, Industry Leader, Hospitality & Leisure,

PricewaterhouseCoopersRaymond Bickson, Managing Director and Chief Executive

Ofcer, Taj Group of Hotels, Resorts, and Palaces

Stephen C. Brandman, Co-Owner, Thompson Hotels, Inc.

Raj Chandnani, Vice President, Director of Strategy, WATG

Benjamin J. Patrick Denihan, Chief Executive Ofcer,Denihan Hospitality Group

Brian Ferguson, Vice President, Supply Strategy and Analysis,Expedia North America

Chuck Floyd, Chief Operating OfcerNorth America,Hyatt

Gregg Gilman, Partner, Co-Chair, Employment Practices,

Davis & Gilbert LLPTim Gordon, Senior Vice President, Hotels, priceline.com

Susan Helstab, EVP Corporate Marketing,Four Seasons Hotels and Resorts

Jeffrey A. Horwitz, Chair, Lodging + Gaming, and Co-Head,Mergers + Acquisitions, Proskauer

Kevin J. Jacobs, Senior Vice President, Corporate Strategy &Treasurer, Hilton Worldwide

Kenneth Kahn, President/Owner, LRP Publications

Kirk Kinsell, President of Europe, Middle East, and Africa,InterContinental Hotels Group

Radhika Kulkarni, Ph.D.,VP of Advanced Analytics R&D,SAS Institute

Gerald Lawless, Executive Chairman, Jumeirah Group

Mark V. Lomanno, CEO, Smith Travel Research

Betsy MacDonald, Managing Director, HVS Global HospitalityServices

David Meltzer, Senior Vice President, Global BusinessDevelopment, Sabre Hospitality Solutions

William F. Minnock III, Senior Vice President, GlobalOperations Deployment and Program Management,Marriott International, Inc.

Mike Montanari, VP, Strategic Accounts, Sales - SalesManagement, Schneider Electric North America

Shane OFlaherty, President and CEO, Forbes Travel Guide

Thomas Parham, Senior Vice President and General Manager,Philips Hospitality Americas

Chris Proulx,CEO, eCornell & Executive Education

Carolyn D. Richmond, Partner, Hospitality Practice, FoxRothschild LLP

Steve Russell,Chief People Ofcer, Senior VP, HumanResources, McDonalds USA

Michele Sarkisian, Senior Vice President, Maritz

Janice L. Schnabel, Managing Director and Gaming PracticeLeader, Marshs Hospitality and Gaming Practice

Trip Schneck, President and Co-Founder, TIG Global LLC

Adam Weissenberg, Vice Chairman, and U.S. Tourism,

Hospitality & Leisure Leader, Deloitte & Touche USA LLP
http://www.chr.cornell.edu/http://www.chr.cornell.edu/


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Tank y t gn

Cpat Mm

FriendsAmerican Tescor, LLC Argyle Executive Forum Berkshire Healthcare Center for Advanced Retail Technology Cody Kramer Imports Cruise Industry News DK Shifet & Associates ehotelier.com EyeforTravel 4Hoteliers.com Gerencia de Hoteles & Restaurantes Global Hospitality Resources Hospitality Financial andTechnological Professionals hospitalityInside.com hospitalitynet.org Hospitality Technology Magazine Hotel Asia Pacic Hotel China HotelExecutive.com Hotel Interactive Hotel Resource International CHRIE International Hotel Conference International Society of Hospitality Consultants iPerceptions JDA SoftwareGroup, Inc. J.D. Power and Associates The Lodging Conference Lodging Hospitality Lodging Magazine LRA Worldwide, Inc. Milestone Internet Marketing MindFolio Mindshare Technologies PhoCusWrightInc. PKF Hospitality Research Resort and Recreation Magazine The Resort Trades RestaurantEdge.com Shibata Publishing Co. Synovate The TravelCom Network Travel + Hospitality Group UniFocus USA Today WageWatch, Inc. The Wall Street Journal WIWIH.COM Wyndham Green

PartnersDavis & Gilbert LLPDeloitte & Touche USA LLPDenihan Hospitality Group

eCornell & Executive EducationExpedia, Inc.Forbes Travel GuideFour Seasons Hotels and ResortsFox Rothschild LLPFrench Quarter Holdings, Inc.HVSHyattInterContinental Hotels GroupJumeirah GroupLRP PublicationsMarriott International, Inc.Marshs Hospitality PracticeMaritzpriceline.comPricewaterhouseCoopersProskauerSabre Hospitality SolutionsSchneider ElectricThayer Lodging GroupThompson HotelsTravelportWATG

Senior PartnersASAE FoundationHilton WorldwideMcDonalds USA

Philips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global


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4 TeCenterforHospitalityResearchCornellUniversity

AbouT The AuThors

byChekitanS.DevandGlennWithiam

Ckitan s. Dv is associate professor of strategic marketing and brand management at the School of Hotel

Administration. Recognized as a leading authority on strategic marketing and brand management, his award-

winning research has been published in several peer reviewed journals, including theJournal of Marketing and

Harvard Business Review. He has won all major hospitality research awards including the 2002 John Wiley &

Sons award for lifetime contribution to hospitality and tourism research. A former corporate executive with

Oberoi Hotels & Resorts, he has served corporate, government, education, advisory and private equity clients

in over 35 countries on ve continents as consultant, seminar leader and expert witness. These include Accor,

Breeden Capital Partners, Chandris Greece, Crystal Cruise Lines, Disney, Expedia, ExpoGourmand Chile, eHow

Technologies China, Four Seasons Mumbai, French Culinary Institute, Grupo Posadas Mexico, Hilton, Holiday

Inn, Horwath Austria, HOTUSA Spain, Hyatt, IHRAI Philippines, InterContinental, Jampro Jamaica, Jumeirah

Dubai, Kerzner Mauritius, Leela India, Mandarin Singapore, Marriott, Mvenpick Switzerland, One&Only UK,

Orbitz, Peninsula, PlanHotels Italy, Priceline, Rosewood, Sarovar India, Starwood, Taj India, Travelocity, Westin, YUM Malaysia, and Zatisi Czech

Republic. Professor Dev was selected as one of the Top 25 Most Extraordinary Minds in Sales and Marketing

for 2009 by Hospitality Sales and Marketing Association International (HSMAI).

Glnn Witiam is director of publications for the Cornell University Center for Hospitality Research. The

authors extend their appreciation to Professor Rohit Verma, executive director of the Center for Hospitality

Research, Jennifer Macera, CHR associate director, and Melissa Carlisle, manager of events and Cornell Quarterly

coordinator, for organizing this roundtable, and to Hilton Worldwide for sponsoring this event. We also

acknowledge the participants for their candid, spirited and thoughtful discussions.

.

Cornell Hospitality Brand Management

Roundtable:

FreshTinkingabouttheBox


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CornellHospitalityRoundtableProceedingsJune2011www.chr.cornell.edu 5

eeCuTe suMMAr

ThegoalsoftherstCornellHospitalityManagementRoundtable,organizedbytheCenterfor

Hospitality Research (CHR) and sponsored by Hilton Worldwide, were to signicantly,permanently, and positively aect the management of hospitality brands.o that end, the

roundtablefeaturedtwelveprovocateurswhomadeeightpresentationsdesignedtostimulate

discussiononkeybrandmanagementissues,andanadditionaltwodozenbrandleaders,consultants,

andprofessorstoparticipateinthedaylongsession.Withafocusonhospitalitybrands,theprovocateurs

examinedtheelementsofaglobalbrand,analyzedthepillarsofbrandgrowth,andexplainedthevalue

ofamenitiestobrandidentity.Aparticularlyinterestingideainvolvedthequestionofwhichbrands

addthemostvaluetoahotelreagging,takingintoaccountthefactthatwithoutabrandthedeal

probably would not be done at all.Te challenges of reorganizing a company to support brand

extensionsweredepictedinthecaseoftheajGroupofbrands,alongwiththeissuesinvolvedinwhen

andhowtouseco-brandinginthelodgingindustry.Designasakeyelementofbrandingwasexplored,

withexamplesofhowcarefuldesigntouchescansetabrandapartfromitscompetitors.Teroundtable

alsoincludedacriticalelementthatisnotalwayspartofthebranddevelopmentdiscussionbutneeds

tobe, legal issues.Teoutcomewasseriesof spiriteddiscussionsoncuttingedgehospitalitybrand

managementchallengesandopportunities.

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CoreLL hosPTALT rouDTAbLe ProCeeDGs

Brandshavebecomethecentralorganizingprincipleformosthospitalityorganizations,

guidingeverydecisionandeveryaction.Teymakeupalargepartofthemarketvalue

ofmanysuccessfulcompanies.Whilemakingmoneyremainstheend,managingbrandssuccessfullyhasbecomemeansnumberone.Manyhotelsandrestaurantsgloballyare

aliatedwithmulti-unitbrands,andhospitalitybrandingisaglobalphenomenonforatleastthree

reasons:thecustomersdesireforapredictableproductandserviceexperience,economiesofscalein

advertisinganddistribution,andmarketpowerinnegotiationwithsuppliers,high-valuebuyers,and

developers.

Cornell Hospitality Brand Management Roundtable:

byChekitanS.DevandGlennWithiam

FreshTinkingabouttheBox


7/20


Hotelandrestaurantbrandsarehighlyfragmented,

however.Forexample,incontrastwithotherproduct

categories,themarketshareaccountedforbythetopthree

brandsineachhospitalitysegmentissmall.Asaresult,

bothindustriesarehighlycompetitiveandbusinessleaders

increasinglyturntobrandmanagementinanattemptto

achievesuperiorperformance.Almostallthemajorhospitalitybrandshave,orarecur-

rentlyengagedin,restructuringtheirbusinessstrategiesand

organizationsaroundbrands.Manyhaveappointedbrand

managersatthevicepresidentlevelandabove.

CEOsareexpectedtoknowenoughtoleadtheeorts

oftheirbrandteams,asexempliedbythecommentofone

CEOnotlongago.Anewsreleaseannouncingthedeparture

oftheCEOoftheworldslargesthotelcompanyafewyears

agocontainedthefollowing:TeBoardofInterContinental

HotelsGroupPLCannouncesthatbymutualagreement

RichardNorthwillbesteppingdownasChiefExecutive

andasaDirector.Inoutliningthereasonforhisdepar-ture,Northhadthefollowingtosay:Itisnowonlyamatter

oftimebeforethecompanybecomesonepredominantly

aboutbrands.Iwouldhavelovedtocontinuetomanage

InterContinentalHotelsGroupPLCasitevolvestobecome

theworldsleadinghospitalitybrandowner.ButIrecog-

nizethatsomeoneelsewhosewholebusinessbackground

hasbeendevelopingandmanagingbrandsmaybebetter

placedtoensurethecompanyachievesthisvisionandcre-

atesmaximumvalueforshareholders.Inanothernodto

theimportanceofbrandmanagementasacriticalskillfor

thoseleadingmajorhospitalityrms,StarwoodandIHGs

currentCEOsarebothformerconsumerproductsbrand

managers.Inshort,thehospitalityindustryoersacomplex,

fragmented,global,competitivecontextfordevelopingnovel,

practical,andprotableapproachestobrandmanagement.

TeBrandRoundtableTeCornellHospitalityBrandManagementRoundtable

wasdesignedasaone-day,interactive,high-leveldiscussion

forselectgroupofthirtybrandexecutives,consultants,and

professorsonavarietyofkeybrandmanagementtopics.

Teroundtablefeaturedseveralprovocativepresentations

bythoughtleadersfromthehospitalityindustry,brand

consultingrms,andtheacademy,includinghotothe

pressresearchstudiesbyleadingscholarscollaboratingwithindustrypartners.Each50-minutesessionwaskicked

owitha20-minutepresentationbythoughtleadersor

provocateursoneachsubject,leavingafull30minutesfor

discussion.Inthefollowingsections,wesummarizethekey

insightsfromeachoftheeightsessions.

BuildingSuccessfulGlobalBrandsSettingabrandapartiscriticalinthelodgingindustry,

whereconsumerscanbeconfusedbybrandsthatappearto

besimilar.Openingsessionprovocateurs,EdLebar,founder,

andSethraum,directorofbrandstrategy,ofBrandAsset

Consulting,explainedhowtotransformcustomerdatainto

brandstrategy,especiallygiventheseaofsamenessthat

aictsmanybrands.Lebarandraumdiscussedthefour

pillarsofbranddevelopmentfromtheBrandAssetValuator

modelofbrandequity.Teyareenergized diferentiation, rel-

evance, esteem,andknowledge.Teseareseenasaprogres-

sionofbrand strengthandbrand stature.Abrandbegins

bybuildingenergizeddierentiationandeventuallybuilds

relevanceasitentersconsumersconsiderationsets.Eventu-

ally,thebrandgainsesteemfromitspatrons,someofwhom

becometrulyloyaltothebrand.Whenconsumersbecome

deeplyknowledgeableaboutabrand,theycanevenbecome

brandevangelists.Tekeyremainsenergizeddierentiation,becausethegreaterabrandsdierentiation,thestrongerits

nancialmetrics.Inthelodgingcategory,energizeddier-

entiationishighlycorrelatedtorevenueperavailableroom

(RevPAR)andaveragedailyroomrate(ADR).Additionally,

relevanceisrelatedtooccupancyrate.

Brandstypicallyexperiencealifecyclethatextends

beyondthedierentiationandgrowthphaseandcanlead

tocommoditizationwhenabrandsdierentiatingproposi-

When consumers becomedeeply knowledgeable abouta brand, they can even

become brand evangelists.The key remains energizeddifferentiation of the brand.Ed Lebar, founder, andSeth Traum, director of brandstrategy, of BrandAssetConsulting


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frequenttravelers,suchattributesasprestige,distinctiveness,

andupperclassarekeydierentiators.Foraglobalbrand,

consistencyiscritical,saidLebar.Tebrandmuststandfor

thesamemessageineverymarket.Abrandthatisincredibly

strongwillneverthelesshavetroublesustaininggrowthifit

isthoughtofdierentlyineachcountry.Consistentglobal

brandingalsocreatesecienciessothatbrandmanagersdonothavetodeterminewhatthebrandspositionisineach

country.Itisessentialtobuildtrustintothebrandmessage.

Abrandisessentiallyapromiseofasetofbenets.Tus,if

thebranddoesnthavetrustandintegrity,itwillnotsurvive.

Analpointaboutaglobalbrandisthatitneedstodevelop

acommunityoflike-mindedpeople.Tiscombinationof

eciency,trust,andcommunityallowsabrandtoreturn

superiornancialperformance.SuchbrandsasBMW,Coca

Cola,Disney,LeviStrauss,andVolkswagenareconsistent

andhighperformingglobalbrands.

WhatItakestoBuildaGreatBrand

Somehotelcompaniesmanagenumerousags,butfewcompanieshavemorebrandstomanagethanProcterand

Gamble.Inamassivebenchmarkingeort,P&Gconducted

astudyoftheworldsbestbrandstodeterminewhatittakes

tobuildapremiergrowthbrand,sothatthecompanycould

reinvigorateitsmanyconsumerbrands.P&GleaderJames

Stengelreasonedthatbyanalyzingthesciencebehindtop

brands,hisrmcouldrethinkthewayitbuildsitsalready

well-knownandsuccessfulbrands.AssistingP&Gwiththis

studywasBenoitGarbe,vicepresidentofMillwardBrown

Optimor,whoexplainedthecoreelementsofthestudy.

Garbepointedoutthatwhenyouseeagreatbrand,you

knowit,asisthecasewithexcellentarchitecture.P&Gs study.ostartthestudy,theMillwardBrown

teamaskedthesequestions:Whatarethebrandsthathave

builtthemostnancialvalueoverthepastdecade?,and

Whatcanwelearnfromthem?Teythencompiledalistof

consumerfacingbrandsthathadseenthegreatestconsis-

tentgrowthovertime.Teydenedthisgrowthbothin

absoluteandrelativeterms,incomparisontotheircategory.

Tismethodologywaslinkedtobrandequityandnancial

performance,basedontheideathatbrandvalueisdrivenby

nancialperformancemultipliedbyequitycontributionand

brandpotential.

Garbesaidtheteamdevelopedalistofthetop25growthbrands,whichtogethercreated$400billion(thou-

sandmillion)inshareholdervalue,andgrewbymorethan

50percentcomparedtotheircompetitiveset.Telistleans

towardgoodsratherthanservices.Someofthesebrandsare

longestablished(e.g.,Heineken),butothersarequiterecent

(e.g.,method,RedBull).Telistincludesbothvaluebrands

(suchasZara,eBay,andEsprit)andluxuryorpremium

brands(notably,LouisVuittonandMoetandChandon).

tionislost.Lebarandraumusedbrandequitymeasures

ofbrandstrengthandbrandstaturetoconstructamatrix

capturingthebrandslifecyclepositioninrelationtoother

brands.Onthematrix,calledaPowerGrid,abrandcanbe

intheundevelopedquadrant,thenichequadrant,theleader-

shipquadrant,orthecommoditizedquadrant.So,abrand

withbothhighstrengthandhighstatureisadistinctiveleadershipbrandthatenjoysthecommitmentofcustom-

ers.Ontheotherhand,manybrandsthathavedeveloped

highbrandstaturebutlackbrandstrengtharecommodity

brands.Tisisnotnecessarilyabadpositionifyourbusi-

nessmodelinvolvesrelativelylowcostsandhighvolume.

Bycontrast,aluxurybrandneedshighbrandstrengthto

maintainitsnichepositioning,nottomentionpricing.Te

keyhereistoalignthebrandsstrategywithitsposition.As

anexample,WHotelshasdevelopedintoanichebrandthat

putsitinastrongposition,althoughitisnotahighvolume

brand.Mostlodgingbrandsarenotintheleadershipquad-

rantwithhighbrandstrengthandbrandstature,evenwhenevaluatedbyfrequenttravelers.

Teoveralltrendforabrandlifecycleistosettletoward

thecommodityquadrant,andwhenthisoccurs,typically

throughlossesinenergizeddierentiation,itcanbedicult

tochangeconsumersmindset.However,abrandcanescape

thisfatebyfocusingonbuildingbrandstrength,raum

explained.Partofthisprocessmayinvolvenewproduct

development,butattentiontobrandingandmarketingalso

isessential.Examplesofbrandsinthequickserviceres-

taurantcategorythathavereversedtheircommoditystatus

andmovedtowardleadershipincludeMcDonalds,KFC,

andSubway.KFC,forinstance,struggledwithconsistency

ofHarlandSanderssoriginalrecipe,Lebarrecalled.Te

chainhadtremendousdicultyingettingpeopletoprepare

thechickenproperly.However,althoughitwasdicultto

movethebrandtoconsistency,thatwasthekeytorecovery.

Withinitscategory,HolidayInnhasworkedtomovetoward

aleadershipdirectionbyaddingnewpropertiesandremov-

ingoldones.Aneortlikethishasbeenslowedformany

brandsbytherecession,sincereducedrevenuesmeanthat

upgradesaredelayed.Perhapstheclassicbrandrehabilita-

tionstoryisthatofAppleComputer,whichwaslefordead

inthe1980s,untilitresurrecteditselfwithnewproducts

andmarketing,andmovedawayfromitsstatusasmerely

acomputermaker.Nintendoalsoreinvigorateditselfwithbrandextensions.Tesearenowgo-toexamplebrands,

buteventenyearsagoeachcouldhavedied.

Forthehospitalityindustry,thematteriscomplicated

bythefactthatvarioustravelersegmentsseekdier-

entlodgingbrandcharacteristicsandthustheyevaluate

thesamebrandindierentways.Frequenttravelers,for

instance,havetheirownperceptionsofhospitalitybrands

thataremoredenedthanthoseofleisuretravelers.For


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Garbepointedoutthatmanystrongbrandsarenotonthe

listsimplybecausetheirgrowthratewasnotasstrongas

thoseinthetop25.

MillwardBrownthenselectedeightdiversebrandsto

determinewhatlessonsmightbefoundintheirsuccess.In

otherwords,whatpropelledtheirgrowth?Teresearchers

expectedtondawidevarietyofmodels,butitturnedoutthatthesetopbrandshadnumerouspracticesincommon.

Fourelementsofbrandbuildingemerged:havinganideal,

focusingonfundamentalstoremaintruetothebrands

heritage,recognizingtheimportanceofleadership(inthe

formofabrandchampion),andseekingengagement.P&G

chosethefollowingbrandstobenchmark:AppleComputer,

HSBC,LouisVuitton,method,MoetandChandon,RedBull,

Samsung,andoyota.

Ideal.Allthebestbrandsarebuiltonanideal,which

drivesallactivitiesanddecisions.Tisidealtapsintohu-

manvaluesandinvolvesservingapurposelargerthanthe

brand.So,forexample,Applesidealwastothinkdierentlyaboutselfexpression;MoetandChandonwasbefabulous;

RedBull,givesyouwings;oyota,improveyourqualityof

life;HSBC,entertaindierentpointsofview;andmethod

promotedahappy,healthyhome.Designmustexpressthe

brandideal,createbuzz,andbuildthebrandsiconicstatus.

Fundamentals.Tebestbrandsareproudoftheir

heritage,Garbesaid.Tisisnotalwaysasimplematter,buta

foundationofheritagegivesabrandcredibilityandauthen-

ticitywhileprovidingguidanceinbrandmanagement.So,

forexample,MoetandChandonhassixvalues(namely,ped-

igree,splendor,luxury,pleasure,surprise,glamour),which

driveallbrand-managementactivities.ForRedBull,the

heritageisamystiqueandthespiritofunderdog:extreme,

unexpected,andanti-conformist.

Leadership.EachbrandhadwhatGarbetermeda

brandartist,whoisavisionaryleaderwhocarriesthevalues

ofthebrandandmakessurealldecisionsarebrandfocused.

Tispersonguardsthebrand.Marketingteamsdonotbuild

abrand,Garbeexplained;instead,topmindsdo.Asuccess-

fulbrandorganizationempowersbrandartistsandlead-

ers,becausestarbrandscanonlystemfromanartisticand

creativemindthatsetsthevisionandcreatessurpriseand

delight.

Engagement.Eachsuccessfulbrandissingle-minded

regardingthebrandorganizationandculture.Tatis,thereisonevoiceandoneorganizationthatextendsfromthe

brand.Tesebrandsdepictastrongbeliefandstrongpoint

ofviewoftheworld.Mostcritically,theyinviteconsumers

intotheirworldtosharetheirvalues.AsGarbeputit,itsnot

whatpeoplebuybutwhattheybuyinto.Headdedthatex-

cellenceinexperienceiscommonacrossalltopbrands.Tat

is,theyalwaysdeliverontheirperformancepromises.Te

bestbrandmanagersknowwhatmattersandkeeptheirmes-

sagesimpleandstraightforward.Suppliersbecomeinsiders,

andemployeesarethebrand.Samsungreinvigorateditself

frombeingsimplyanelectronicsmakertoatrendypurveyor

ofdesignandcreativecapabilities.Asaresult,ithaswon26

internationaldesignexcellenceawards.Alongthesamelines,

AppleComputersmessageistofocusonwhatmattersandbedisruptive.Formethod,theapproachistotreatdesign

asitsmediumtooerstyleandsubstanceforthehome.In

keepingwithitsbrandstrategy,LVMH(LouisVuittonspar-

entbrand)by-passesback-of-houseeciencytoruneachof

itsbrandsasaseparately.

Companiescanengageconsumersbycreatingexciting

encounters.Inadditiontotalkingwithonevoice,thebrand

canactbig(evenifitisnt)byco-creatingwithconsumers

throughdialogueandbuildingbuzz.Continualinnovation

ispartofthisengagement,butinthecontextofinnovation

onewaytobebigistocreatecollections.Tisinteresting

conceptborrowedfromfashionworldsuggestsaperiodicinnovationannouncementthatincludesaclusterofprod-

ucts,designs,orservices.WhenAppleannouncesitsnew

iPadoriPhone(orcloudcomputing),itfeaturesacollec-

tionofcolorsandoptionalequipment,forinstance.oyota

unveilsnewmodelsandnewtrimlinesforeachmodelyear,

demonstratingitsnewideasforitsvehicles.

Insum,Garbesaidthatthegoalofthetopbrandsisto

servebiggerideasandtapintohumanvalues,embracethe

Top growth brandsdemonstrated four keyelements of brand building:

having an ideal, focusingon fundamentals to remaintrue to the brands heritage,recognizing the importanceof leadership (in the form of abrand champion), and seekingengagement.Benoit Garbe,

vice president, Millward BrownOptimor


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stakeholdersinvolvedinalodgingdeal.However,lodging

chainscanmakestatementswithdesign,andallhospitality

rmshaveagoldenopportunitytodeveloprelationships

withtheirguests.So,thepotentialforbrandexcellencere-

mainsinplace.Itwasproposedthatgreatservicebrandscan

buildfromtheinsideout,eventhoughitshardtooptimize

aroundmultipleoperatingmodelsthatincludefranchises,managementcontracts,andotheroperatingstructures.As

MichaelLeven,oftheSands,summarizedthisdiscussion:

Youhavetobeenormouslytruetoyourbrand.

BrandingbyAmenityTelodgingindustryswell-knowntrendofamenitycreep

isoenattributedtobrandseortstodierentiatethem-

selvesfromcompetitors.Mostindustryoperatorswould

agree,however,thatdespiteconsiderableexpense,adding

amenitieshasnotalwayscreatedthehoped-fordierentia-

tion.Seekingtounraveltheamenitiesequation,Starwood

collaboratedwithprofessorsatCornell(ChekitanDev)and

UniversityofMaryland(RebeccaHamiltonandRolandRust)toconductasystematicstudyofamenitiesthatguests

actuallywantanduse.Inparticular,thestudysoughtaway

tocalculatereturnontheamenitiesinvestment,dubbed

ROA(returnonamenities).MattValenti,directorofglobal

marketresearch,andJenniferSabet,manager,globalmarket

research,ofStarwoodjoinedProfessorHamiltonforthe

presentation.

ProfessorHamiltonexplainedthatresearchinother

areassuggeststhathotelguestsmaybepoorpredictorsof

whichamenitiestheywillactuallyuse.Whilepurchasing

(andbeforeusing)products,consumerstendtoover-choose

featuresandfocusondierentdimensionsthantheydoaerusingtheproduct.Beforeusingproducts,consumerstend

tofocusmoreonthedesirabilityofproducts(whytheywant

theproducts);however,aerusingproducts,consumers

tendtofocusmoreontheusability(howtheyusedtheprod-

uct).Inthisstudy,amenitiescoveredawiderangeofservices

andfeatures,includingvaletparking,kioskcheck-in,guest-

roomtelevisionanddeskchair,ahairdryer,andasafe.Te

researchteamwasinterestedinwhetherhotelguestswould

experienceasimilarip-opintheiramenitypreferences

beforeandaertheirhotelstay.Inaword,theanswerisyes.

Asexpected,thesurveyfoundthatpredictedamenity

usewasgenerallyhigherthanactualamenityuse.Valentipointedtoanotherkeyareaofthestudy,whichishowusing

amenitiescontributestoguestsevaluationsoftheirexperi-

ences.Testudyfoundthatguestswhousedmoreamenities

weresignicantlymoresatisedwiththeirstay.

Becauseofitsrobustsamplemethodologyacross

brands,markets,andguestsegments,thestudywasableto

investigatetheroleofchargingforamenities.Teresults

foundthatadd-onchargesaectbothamenityuseandame-

brandheritagetosetfutureactivities,deliverexperience

excellence,livethroughdesign,applythebrandprinciplesin

allcases,maintainasingle-mindedorganizationandculture,

andpayattentiontopriceandvalue.Asaresultofthestudy,

ProcterandGamblereorganizedtocreateabrandculture.

UsingPampersasanexample,thebrandspurposewas

emphasized.Itsnotjustdiapers,butitshappyhealthybabies,

andinnovationstemsfromthatprinciple.Insteadofbeing

justanotherP&Goce,thisisnowthePampersdivision

thesingle-mindedorganizationthatmanagesthatbrand.

Roundtableparticipantsnotedthatnoserviceorgani-

zationwasincludedinthestudy,andGarbeexplainedthat

manyfood-servicebrandswerecontendersbutdidnotshowthenecessarygrowth.Starbucks,forexample,wasagrowth

brandthatlostitsway.Hefeltthattheyhadwalkedaway

fromtheirbrandpropositionofcreatingahumanconnec-

tion,walkedawayfromtheirheritage,andstoppedtraining

peopleinthosebrandelements,andinsteadtriedtobea

quick-servicechain.Otherservicebrands,notablymany

lodgingchains,arehardpressedtomaintaintheconsistency

requiredtobeatopbrandpossiblybecauseofthemany

A systematic study ofamenities that guests actuallywant and use found that hotel

guests tend to over-choosefeatures and focus on differentdimensions before they usethe product than after using it.Rebecca Hamilton, professor,University of Maryland, MattValenti, director of global

market research, Starwood,and Jennifer Sabet, manager,global market research,Starwood


11/20


nitysatisfaction.Usagechargesincreasedthegapbetween

predictedandactualuseofamenities;however,dierent

marketsegmentsreacteddierentlytousagecharges.

Calculationofreturnonamenitiesmusttakeintoac-

count(a)thattheguestsdecisiontostayisbased,inpart,on

predictedamenityuse,and(b)actualamenityuse.Guests

whousemoreamenitiesaremoresatisedwiththeirstayandmorelikelytoreturntothebrand.However,systematic

mispredictionsofamenityusearealsoimportantformanag-

erstounderstand,Hamiltonconcluded,becausedecisionsto

stayatapropertymaybebasedmoreonwhatgueststhink

theywilluseratherthanwhattheyactuallyuse.

TeValueofaBrandInsearchofwaystounlockthevalueoftheirlodgingas-

set,hotelownershavechangedthenameofsome12,000

hotelsinthepastthreedecades,accordingtoSR.Tus,the

reaggingcurvehasgoneexponential.Tequestionis,what

nancialoutcomesresultfromreaggingaproperty?Ajoint

proprietarystudybyCornell,UniversityofChicago,andPKFHospitalityResearch(PKF-HR)calculatedthevalueof

specicbrandsandrebrandinggenerallyfor203hotelsfor

whichveyearsofoperatingdatawereavailable.Tehotels,

whichhadanaveragesizeof104rooms,wereconvertedin

oneofthreeways:brandtobrand,independenttobrand,or

brandtoindependent.Testudycapturedprotandloss

datafortwoyearspriortotherebranding,therebranding

year,andtwoyearsfollowing.Tehotelswerematchedtoa

controlgroupofhotelsthatdidnotrebrandbutarelocated

inthesamemetropolitanarea,andwereexaminedduring

thesameperiodastherebrandedhotels.Althoughbalance

sheetinformationwasnotavailable,thetwogroupswerecomparedforincreasesinoccupancyrate,ADR,RevPAR,

roomsrevenue,totalrevenues,marketingexpenses,gross

operatingprot(GOP),andnetoperatingincome(NOI).

ResearchersMarkWoodworth,presidentofPKF-HR,

andCornellsChekitanDevexplainedthatifweholdall

otherthingsconstant,welookforthechangeasaresultof

thebrandswitch,bycomparingthetestgrouptothecontrol

group.Overall,aerrebranding,thetestgroupsawincreases

inADR,RevPAR,andrevenues,butalsoasubstantialin-

creaseinmarketingexpense.Tesedierencesweresigni-

cant.akingjustthebrandtobrandconversions,RevPAR

increased12percent.However,comparedtothecontrolgroup,theincreaseismoreofanoccupancystory,resulting

inonlya5-percentRevPARlithatcanbeattributedtothe

brandchangeover.

Hotelsthatdiscontinuedtheirbrandandwentinde-

pendentsawdropsinoccupancy,buttheystillrecordedan

11-percentincreaseinRevPAR.Comparedtotheircontrol

group,however,althoughthenewlyindependentproperties

hadincreasedADR,therewasnootheridentiablebenet

beyondadropinmarketingexpenses.Conversely,thesenow

independenthotelsexperienced,onaverage,a35-percent

declineinNOIaerallowingfortheperformanceofthe

controlgroup.

Teformerlyindependentpropertiesthataddedaag

enjoyedincreasesinoccupancy,ADR,and(thus)RevPAR,buttheyalsoexperiencedconsiderableincreasesinmarket-

ingexpenses.Tesegreatermarketingcostsservetooset

theidentiedrevenuegainsthusresultingslightdeclinesin

netoperatingincome.

TesedataallowedWoodworthandDevtobreakout

theeectsofspecicbrandswhenahotelreagged.Some

brandsaddedmorevaluethantheyextractfromaproperty,

butothersabsorbedvalue.Tus,duetodropsinoccupancy,

Although different brandsbring various levels of valueto a hotel deal, most lenders

prefer having a brand overindependent operation.MarkWoodworth, president, PKF-HR,and Chekitan Dev, associateprofessor, Cornell University


12/20


Notingthecriticalmatterofbrandexpenses,edeng,

ofLeadingHotelsoftheWorld,recalledthereaggingpolicy

whenhewaswithWyndham.Hepointedoutthatthechain

alwaysrebrandeditsownedhotelstoWyndhamwhenpos-

sibleeveniftherewasarateoroccupancyhit,becausethat

allowedthechaintocapturemarketingandbrandexpenses,

insteadofpayingthemtoanotherag.

BrandingintheInternetAgePaulBrown,president,brandsandcommercialservices,

HiltonWorldwide,sharedHiltonsapproachtoengaging

consumersinitsbrandsthroughonlinechannels.Tenew

modeliscompletelytopsyturvy,hesaid,sincetheoriginal

ideaofwebsearchinvolvedatop-downapproach,where

peoplecametoasiteandgraduallynavigateddowntothe

inventory.Nowitssidewaysnavigationatbest,andtheaver-

agetravelercanvisitasmanyas22websitesbeforebooking.

Asaresultofthisrealization,Hiltonchangeditsfocuson

channelmanagementtoevaluatetheactivitiesoftheonline

teams,withagoalofinuencingthedecisionprocessandmaximizingretailpresence,ratherthanjustdidIgetthe

booking.

akingaleaffromproductmarketers,Brownsaidthat

shelfspaceisanessentialconsiderationthatis,havingthe

brandappear,underHiltonsretailguidelines,inasmanyrel-

evantlocationsaspossibleasmanytimesaspossible.Tus,

inadditiontobuildinggreatbrandsthatdeliverrelevant

productandexperienceandthatsendapropermessage,

onemustmakesurethatproductdistributionisappropriate

throughallrelevantchannels.

Tisinvolvesmaintainingarelationshipwithall

channelsthatmattertoyourbusiness.BrowngavetheexampleofCocaCola,whichhasmaintainedastrong

relationshipwithmanydistributorstogetaddedshelfspace

andtolockupdistributionchannels.TisallowedCoketo

getimmediatedistributionforitsnewproductsthroughits

existingchannels.

So,abrandcandemonstrateitsvaluetoownersin

partbyshowingitsshelfspaceontheGDS,anywebbased

business-to-consumer(B2C)channel,orinsalesrelation-

ships.Contrarytocommonbelief,thegreatesteectof

onlinetravelagentshasnotbeentodirectlyincreasecom-

moditization,buttoincreasetransparency.Consequently,if

abrandorhotelisinfactanundierentiatedcommodityorperceivedasoneoflowqualityorservice,thisbecomes

readilyapparenttoconsumersastheysearchontheweb.

Forthisreason,itisessentialtohaveagreat,dierentiated

productandalsotomakesureallcommunicationisaligned

withthatproduct.

BrownnotedthatthereslotsofnoiseregardingOAs

inthelodgingindustry,buttheOAsareinthemiddleof

thisdiscussionmostlybecauseofthetransparencythey

certainbrandsaresignicantlynegativeinRevPAR.Most

brandsincreasedADR,butnotallincreasedoccupancy,and

thechangeintotalrevenuewasnotalwaysfavorable.With

thosedata(assumingthenecessaryauthorizationissecuredfromtheprovideroftheseproprietarydata),itwouldbe

possibletocreateanindexinwhichbrandsareranked

accordingtovaluecreation.Suchanindexwouldbeuseful

forassetownersconsideringanewagandfortheparties

involvedinassetmanagement.

Althoughitspossibletocreatesuchanindex,thefactis

thathavingabrandistypicallycriticaltosecuringnancing

foraproject,Woodworthcautioned.Inarecentmeeting

withylenders,hefoundthatallofthempreferredaag,

whileonlyaselectfewwouldlendmoneyforanindepen-

dentproperty.Tus,evenifthebrandtechnicallyextracts

morevaluethanitcontributes,thefactisthattherewouldbe

nodealwithoutthebrand,andsothebrandclearlybrings

valuetotheowner.

MichaelLeven,ofTeSands,couldseeanotheruse

forsuchanindex,whichistoprovidethedataneededto

showbrandmanagerswhattheyneedtodotoimprovetheir

brandtocreatemorevalue.Otherissuesaretocheckthedif-

ferencebetweenupmarketanddownmarketreaggingand

toseewhethertherearedierencesbetweeninstitutional

ownersandowner-operators.

Shelf space is an essentialconsiderationthat is, havingthe brand appear, under

Hiltons retail guidelines, inas many relevant locationsas possible as many timesas possible.Paul Brown,president, brands andcommercial services, HiltonWorldwide


13/20


provide.Heagreesthattheeconomicsappeartroubling,but

arguesthattheynotasbadastheyseem.Indeed,hesees

thecostoftheOAasbeingnottotallyoutoflinewiththe

netcontributionitprovides,particularlygiventheassoci-

atedbillboardeectandinmanycasestheabilitytotapinto

incrementalsegments.Tatsaid,OAcostsareexpectedto

continuetobereducedovertimeasalternativedistributionchannelsemergeanddirectonlinechannelsbecomeeven

moreeective.

AsBrownexplainedit,Hiltonspolicyistosellthe

wayourcustomerswanttobuyattheoptimaleconomics

forHiltonandourhotels.Tisstrategyincludesmaintain-

ingvisibilityandmakingiteasytonavigateacrossallcore

retailandsearchchannels.Itsessentialtoestablishconsis-

tentproductpricingacrossallchannels,andtoprovidethe

customerwithcompellingreasonstousedirectchannels

asmuchaspossible.Inanalyzingthedierentchannels,its

essentialtotakeaholisticviewtodetermineeachchannels

economics,roleandrelativevalue,bothasaninuencerandasabookingengine.Forthisreason,onemustmanage

channel-pertinentdatainthemostgranularformtogainan

apples-to-applesassessment.

Makingdirectchannelsbetterthananyothersthat

thecustomermightuseincreasesyield,asdoesencourag-

inggueststoparticipateintheloyaltyprogram.Customers

whoaremembersofHiltonHHonorsaretwotothreetimes

morelikelytobookthroughdirectchannels,sothatisworth

alot.Brownaddedthatitisdangeroustolookataverage

economics.Instead,youhavetolookatthemargintosee

howthedollarschange.Justasanexample,pay-per-click

advertisingseemslikeareasonablewaytobringinbusiness,

butastheclicksincrease,theybecomeconsiderablymore

expensive,andthemarginalincreasefrompaidsearchdrops

considerablyveryquickly.

Heresanexampleofhowtocreateaholisticviewofa

channel,inthiscaseOAs.TeprosforOAsinclude:the

valueofbeingontheshelf,includingthebillboardeect;

theyreachadistinctivecustomerbase;theyoerrelatively

compellingyieldifwellmanaged;theircontractrulescanset

termsandpricestability;andthechannelreturnsrelatively

highROIonpromotionsandmarketing.Teconsarethat

OAsarerelativelyexpensiveandbidupcostofsearch

terms.TeygenerallyoerlowerreportedADRsandrela-

tivelyinexibleinventorycontrols,andmostcriticallyfromabrandmanagementpointofview,thebranddoesnothave

directconnectionwithconsumerinbooking.

BrandArchitectureOneissueraisedbyBenoitGarbesProcterandGamble

studywashowtocreatetheorganizationbehindthebrand.

Inrecentyears,theajorganizationaddressedthatissueasit

redevelopeditsorganizationtomanageaportfolioofbrands.

Inajointpresentation,LuluRaghavan,countrydirector,

LandorAssociates,andAjoyMisra,seniorvicepresident

forsalesandmarketing,ajHotels,Resorts,andPalaces,

explainedajsportfolioapproachtomanagingwhathadbecomeagroupofdisparatepropertiesstraddlingdierent

segmentsofthemarket.Synonymouswithluxuryhospitality

since1903,theajhadgrownrapidlysince1971byreach-

ingouttonewmarketsandcustomergroups.Opportunistic

growthstretchedthebrand,however.Asaresult,therm

wantedcreateabrandstructurethatmadesensebothexter-

nally,intermsofcustomersperceptions,andinternally,in

termsoforganization.

Giventhatajoperatedbrandsindisparatemarket

segments,oneofitschiefconsiderationswastodetermine

howmanybrandsitneededtocoverthedierentmarket

opportunitiesandtherelationshipbetweenthemaster

brand(aj)andtheotherbrandsitmightneedtohave.Te

recongurationstrategycameattheinectionpointof2003,

whenthecompanyreorganizedfromamonobrandtomul-

tiplebrands,thusrelievingthestretchonthecorebrand.aj

satattheintersectionofthreevectors: (1)brandarchitecture,

internationalexpansion,andcustomerexperience;(2)new

expansioninternationallyandanewreviewofthecus-

tomerexperience;and(3)therealizationthatthechainhad

grownopportunistically.Teajgroupbroughtordertothe

Taj created a brand structurethat made sense bothexternally, in terms of

customers perceptions,and internally, in terms oforganization.Lulu Raghavan,country director, Landor

Associates, and Ajoy Misra,senior vice president for salesand marketing, Taj Hotels,

Resorts, and Palaces


14/20


Oncetheanalysiswascompleteandthestrategyset,the

onlychallengewasinactuallystarting.Makingchangesin

thebanneryearof2003didntinitiallyseemtomakesense,

butthelogicwascompelling.LaunchingtheGatewaybrand

wasawhite-knucklemoment,sincesomanyhotelsneeded

tobereagged.Finally,itwasessentialtomaintainopen

transferforemployeesfromonebrandtoanother,allundertheataumbrella.Withthosebarrierssurmounted,the

condenceinthisnewarchitecturecontinuestogrow.oday

theajsportfolioencompasses105hotelsin11countrieson

5continents.

TeBrandasaBundleofRightsLongtimehospitalitylitigatorJimRenard,apartnerwiththe

lawrmofBickel&Brewer,broughttheroundtableupto

speedonissuesrelatingtobrandsandlaw.Renardseesthe

conceptofabrandasconsistinginlargepartofabundle

ofintellectualpropertyrights:comprisingservicemarks,

copyrightedmaterials,andtradesecrets.Forcompaniesthat

ownalltheirhotels,legalchallengesareminimal,intermsofacquiringmarksandcopyrightsandkeepingtradesecrets.

Challengesarise,however,inconnectionwiththird-

partymanagementagreementsandfranchisecontracts,

pursuanttowhichbrandowners(i.e.,chains)conveyto

otherstherighttouseortoaliatehotelswiththeirbrands.

Ofthemanyprovisionsinmanagementcontracts,amajor

breedinggroundforbrand-relateddisputeshasbeenterrito-

rialprotectionclausesbywhichhotelownersareeectively

givenenforceablerightsagainstthebrandownersthem-

selves.Furthercontributingtothosecontroversiesisthe

fundamentallegalprinciplethattheoperatorisanagentof

thehotelownerandowestheownerduciaryduties,evenifthecontractdisavowsthatrelationship.

Teindustryscontinuingconsolidationinthelasttwo

decadesincreasedthenumberofdisputesregardingterritory

issues.Insomeinstances,mergersandacquisitionsledto

unintendedencroachmentsformanyhotelcompanies.In

addition,theproliferationofco-brandsandendorsed

brands(thatis,newhotelbrandsthatarealiatedwithor

areendorsedbyexisting,well-knownbrands)hasgivenrise

tonumerousclaimsofbreachesofrestrictivecovenantsand

territorialexclusivityclauses.Renardexplainedthatmany

ofthesedisputesarosebecauseofcontractlanguagethat

wasnotdraedwithsucientcare(orsucientforesight),aswellasbythefailureonthepartofsomemanagement

companiesandfranchisorstomonitorandcoordinatetheir

developmentactivitieswiththelimitationsandrestrictions

imposeduponthembyexistingcontractswiththird-party

owners.Insum,Renardurgedallbrandpurveyorstobe

awareoftheprovisionsoftheircontractsandtoensure

compliancewiththeirobligationsastheybuildthevalueof

theirbrands.

portfolio,byrepositioningajastrueluxurybrandandby

focusingondomesticdominanceinIndiawiththecreation

oftwonewbrandsVivantabyajandTeGatewayHotel,

whichisnotexpresslyaajbrandinname,butwhichiscon-

nectedtoit.Itthensetitsbudgetbrand,Ginger,inamoredistantorbitbothorganizationallyandintermsofmarket

perception.Tisframeworkwasdictatedbytherealitiesof

thepossibledilutionofthemainbrandbyassociationwith

midmarketandeconomybrands.

Foraj,thekeysuccessfactorswereasfollows:

Dierentiationincategoriesandpositionincompetitive

brandscape,

Seniormanagementalignmentmanagerssoonreal-

izedthatthecompanystructurewouldchange,

Employeeengagement,training,andmotivation,

Partneracceptancethistookalongtimeandthejourneycontinues,

Optimaldeploymentofresources,

Consumerinsightandcustomermappingforpsycho-

graphics,

Brandblueprintforbothserviceandproduct,and

Communicationinallthiswascritical.

The industrys continuingconsolidation in the last twodecades increased the number

of disputes regarding territoryissues.Jim Renard, a partnerwith the law rm of BickelBrewer


15/20


BrandingbyDesignSeveralofthebrandingdiscussionsacknowledgedthat

designisacriticalaspectofanybrandspositioning.Howard

Wol,seniorvicepresidentatWAG,illustratedhowbrand-

ingbydesignispartartandpartscience.Tesciencecomes

fromunderstandingtheelementsofgooddesign.AsWol

explainedthem,theyarefunctionality,quality,andimpact.Morespecically,excellentdesignmeansthatapropertyis

designedforitspurpose,isbuilttolast,andlispeoples

spirits.

akingthoseprinciplesasabasis,Wolreferenceda

toolcalledDQI(DesignQualityIndicator)toquantifyhow

designaddsvaluetoaproject.Hyatttestediton30oftheir

ownedhotelsadministeringthe99-variablequestionnaire

to2,000guestsandemployeesandwasabletocorrelate

theDQIscoreswithguestandemployeesatisfactionaswell

aswiththehotelsRevPARindex.WAGalsohasexamined

theeectofdesignonapropertystopandbottomline,by

comparing27hotelsthatthermdesignedinfourgeo-graphicareasagainstcompetitivesetsinthesamemarkets

managedbythesameoperatorsoverthecourseof20years.

TeWAGhotelsoutperformedthecontrolgroupinoc-

cupancy,ADRandRevPAR.

Wolsaidthatdesignaddsvalueinthefollowingways:

Assetvalue:highervaluationaswellasloweroperating

andmaintenancecosts;

Qualityofenvironment:improvedproductivityand

betterguestexperience;and

Brandidentity:recognition,visibilityandmedia

exposure.

Wolcautionedthatyourbrandisdenedbyyourcus-

tomers,notbyyou.Gooddesignemphasizesandreectsthe

brandspromises.Asanexample,Morganscustomerspoint

tothedesignoftheirhotelsasbeingunexpected,dynamic,

andfun.

Whileitseasytothinkofguestsatisfactiononasingle

continuum,Wolseestwoseparatelinearscalesofcustomer

satisfaction.Intherstone,ifyouxwhatswrong,youcan

turnadissatisedcustomerintoasatisedguest.Tesecond

levelstartswithasatisedcustomerandmovestoaguest

wholovestheproperty.Design,asWolillustratedwith

examples,canhelptomovegueststotheloveitcategory.Ifyoudliketoknowwhatdesignissuesyourproperty

faces,askyouremployees.Guestscomeandgo,butemploy-

eeshavetodealwithapropertysdesignweaknessesdayaf-

terday,and,moretothepoint,employeesconcernsmirror

manyoftheguestsissues.Basedonresearchconductedby

Wol,thetopcomplaintscitedbyemployeesaboutahotels

designarealsonotedbyguests:insucientlighting,inad-

equateworkspaces,poortemperaturecontrol,slowelevators,

confusingnavigation(poorsigndesign),andmaintenance

issues.Wolpointsoutthatyoucanthaveagreathotelif

youremployeesdontliketheplace.Tereisalsoabottom-linebenettohavinghappyemployeesthatcanbemeasured

intermsofproductivity,morale,turnoverandguest

satisfaction.

Inconclusion,Wolrelayedthendingsofanother

studythatinvolveswheretogetthemostbangforyourbuck

inarenovation.Teanswer,surprisingly,wasthelobbyover

theguestrooms,basedondoingabeforeandaeranaly-

sisofeighthotelsrenovatedbyHyatt.Beyondthatnding,

renovatingboththeguestroomsandlobbytogetherhadan

evengreaterimpactonguestsatisfactionandROI.Atresort

properties,investinginlandscapingandenhancingthear-

rivalexperiencecanalsogeneratehandsomereturns.

ConclusionTegoaloftherstCHRBrandManagementRoundtable

wastoprovokechangeandpushthestatusquo.Terangeof

topicscoveredintheone-daysessioncanbeviewedinthe

wordcloudonthenextpage,createdbysubjectingthetran-

scriptofthedaysproceedingstoWordCloudanalysis(using

freesowareatwordle.net).Teimportanceofeachtopicis

denedbythesizeofthewordinthecloud.

If youd like to know whatdesign issues your propertyfaces, ask your employees.

Their concerns mirror thoseof guests. Howard Wolff,senior vice president at WATG


16/20


ExhibiT 1

Wd cld f and managmnt ndtal

Teglobalbrandscapediscussiondenedthetrendsto

whichbrandleadersneedtopaymoreattention;thebrand

rightsdiscussiondeterminedhowbrandrightsshould

bebestenshrinedinmanagementagreements;thebrand

architecturediscussiondenedthebestwaytomanagea

brandportfolio;thebrandingbydesigndiscussionfocused

onwhichaspectsofdesigndriveguestengagement;the

brandamenitiesdiscussionidentiedthekeyamenitiesthatdriveusageandsatisfaction;thebrandingintheinternet

agekeynoteprovocationledthediscussiononthefutureof

brandsonline,includinghowhotelbrandsandOAscan

livetogetherbetter;andthebrandvaluediscussiondened

anewandbetterwayforbrandstotracktheircompetitive

performance.Insummary,thisroundtableprovidedat-

tendeesanopportunitytoshowcasetheirthoughtleadership,

oerinsights,andlearnfromsomespiritedandinformative

discussions.n


17/20

CornellHospitalityRoundtableProceedingsJune2011www.chr.cornell.edu 175244004.1

The Executive PathHospitality Leadership Through Learni

Complete program information and applications available onli

www.hotelschool.cornell.edu/exec

Phone + 1 607 255 4919 Email [email protected]

Professionals from around the world ainvited to attend 3-day, 10-day or onlincourses at the worlds leading institute fohospitality management education in:

Visit our website to apply.

Explore, develop and apply ideas witglobal hospitality leaders an

expert Cornell professors

Success

AdvancingBusiness

andPersona

Strategic Leadership Finance

Foodservice Human Resources

Marketing

Operations

Real Estate


18/20


CHR Publications

Indexwww.chr.cornell.eduCornell Hospitality Quarterlyhttp://cqx.sagepub.com/

2011 ReportsVol.11,No.11CustomerLoyalty:ANewLookattheBenetsofImprovingSegmentationEortswithRewardsPrograms,byClayVoorhees,Ph.D.,MichaelMcCall,Ph.D.,andRogerCalantone,Ph.D.

Vol.11,No.10CustomerPerceptionsofElectronicFoodOrdering,bySherylE.

Kimes,Ph.D.

Vol.11,No.92011ravelIndustryBenchmarking:StatusofSeniorDestinationandLodgingMarketingExecutives,byRohitVerma,Ph.D.,and

KenMcGill

Vol11No8Search,OAs,andOnlineBooking:AnExpandedAnalysisoftheBillboardEect,byChrisAndersonPh.D.

Vol.11No.7Online,Mobile,andextFoodOrderingintheU.S.RestaurantIndustry,bySherylE.Kimes,Ph.D.,andPhilippF.Laqu

Vol.11No.6HotelGuestsReactionstoGuestRoomSustainabilityInitiatives,byAlexSusskind,Ph.D.andRohitVerma,

Ph.D.

Vol.11,No.5TeImpactoferrorismandEconomicShocksonU.S.Hotels,byCathyA.Enz,RentaKosov,andMarkLomannoVol.11No.4ImplementingHumanResourceInnovations:TreeSuccessStoriesfromtheServiceIndustry,byJustinSunandKateWalsh,Ph.D.

Vol.11No.3Compendium2011

Vol.11No.2PositioningaPlace:DevelopingaCompellingDestinationBrand,byRobertJ.Kwortnik,Ph.D.,andEthanHawkes,M.B.A.

Vol.11No.1TeImpactofHealthInsuranceonEmployeeJobAnxiety,WithdrawalBehaviors,andaskPerformance,bySeanWay,Ph.D.,BillCarroll,Ph.D.,AlexSusskind,Ph.D.,andJoeC.Y.Leng

2011 Hospitality ToolsVol.2No.1Megaips2:wentyestedechniquesforIncreasingYourips,byMichaelLynn

2011 Proceedings

Vol3,No.5BuildingBrandsintheInternetAge:Analytics,Loyalty,andCommunication,byGlennWithiam

Vol.3,No.4BraveNewWorld:OnlineHotelDistribution,byGlennWithiam

Vol.3,No.3SocialMediaandtheHospitalityIndustry:Holdingtheigerbytheail,byGlennWithiam

Vol.3No.2TeChallengeofHotelandRestaurantSustainability:FindingProtinBeingGreen,byGlennWithiam

Vol.3No.1CautiousOptimism:CHRSExaminesHospitalityIndustryrends,byGlennWithiam

2010 ReportsVol.10No.18HowravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisions,byLauraMcCarthy,DebraStock,andRohitVerma,Ph.D.

Vol.10No.17PublicorPrivate?TeHospitalityInvestmentDecision,byQingzhongMa,Ph.D.andAthenaWeiZhang,Ph.D.

Vol.10No.16BestPracticesinSearch

EngineMarketingandOptimization:TeCaseoftheSt.JamesHotel,byGregBodenlos,VictorBogert,DanGordon,CarterHearne,andChrisK.Anderson,Ph.D.

Vol.10No.15TeImpactofPrix Fixe

MenuPriceFormatsonGuestsDealPerception,byShuoWangandMichaelLynn,Ph.D.

Vol.10No.14TeFutureofHotelRevenueManagement,bySherylKimes,Ph.D.

Vol.10No.13MakingtheMostofPricelinesName-Your-Own-PriceChannel,byChrisAnderson,Ph.D.,andShijieRadiumYan

Vol.10,No.12CasesinInnovative

PracticesinHospitalityandRelatedServices,Set4,byCathyA.Enz,Ph.D.,RohitVerma,Ph.D.,KateWalsh,Ph.D.SherylE.Kimes,Ph.D.,andJudyA.Siguaw,D.B.A

Vol.10,No.11WhosNext?AnAnalysisofLodgingIndustryAcquisitions,byQingzhongMa,Ph.D.,andPengLiu,Ph.D.
http://www.chr.cornell.edu/http://cqx.sagepub.com/http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15619.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15619.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15619.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15619.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15560.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15560.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15562.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15562.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15562.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15562.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15481.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15481.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15479.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15479.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15479.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15439.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15419.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15419.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15419.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15379.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15379.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15379.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15379.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15579.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15579.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15579.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15539.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15539.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15500.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15500.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15500.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15482.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15482.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15482.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15460.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15460.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15460.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15460.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15460.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15460.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15482.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15482.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15482.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15500.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15500.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15500.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15539.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15539.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15579.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15579.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/roundtableproceedings/roundtable-15579.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15379.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15379.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15379.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15379.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15419.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15419.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15419.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15439.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15479.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15479.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15479.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15481.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15481.htmlhttp://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15540.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15562.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15562.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15562.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15562.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15560.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15560.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15619.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15619.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15619.htmlhttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15619.htmlhttp://cqx.sagepub.com/http://www.chr.cornell.edu/


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Vol.10,No.10CasesinInnovativePracticesinHospitalityandRelatedServices,Set3:CayugaSustainableHospitality,Chic&Basic,JetBlueAirlinesJumeirahEssexHouse,TeRitz-Carlton

HotelCompany,Runtriz,TeSeaportHotel,TayerLodging,ripelevision,andXsenseExperientialDesignConsulting,by

CathyA.Enz,Ph.D.,RohitVerma,Ph.D.,KateWalsh,Ph.D.SherylE.Kimes,Ph.D.,andJudyA.Siguaw,D.B.A.

Vol.10,No.9BuildingCustomerLoyalty:enPrinciplesforDesigninganEectiveCustomerRewardProgram,byMichaelMcCall,Ph.D.,ClayVoorhees,Ph.D.,andRogerCalantone,Ph.D.

Vol.10,No.8DevelopingMeasuresforEnvironmentalSustainabilityinHotels:AnExploratoryStudy,byJieJ.Zhang,NitinJoglekar,Ph.D.,andRohitVerma,Ph.D.

Vol.10,No.7SuccessfulacticsforSurvivinganEconomicDownturn:

ResultsofanInternationalStudy,bySherylE.Kimes,Ph.D.

Vol.10,No.6IntegratingSelf-serviceKiosksinaCustomer-serviceSystem,bysz-Wai(Iris)Lui,Ph.D.,andGabrielePiccoli,Ph.D.

Vol.10,No.5StrategicPricinginEuropeanHotels,20062009,byCathyA.Enz,Ph.D.,LindaCanina,Ph.D.,andMarkLomanno

Vol.10,No.4CasesinInnovativePracticesinHospitalityandRelatedServices,Set2:Brewerkz,ComfortDelgroaxi,DinnerBroker.com,Iggys,JumboSeafood,Openable.com,PriceYourMeal.com,SakaeSushi,Shangri-LaSingapore,andStevensPass,bySherylE.Kimes,Ph.D.,CathyA.Enz,Ph.D.,JudyA.

Siguaw,D.B.A.,RohitVerma,Ph.D.,andKateWalsh,Ph.D.

Vol.10,No.3CustomerPreferencesforRestaurantBrands,Cuisine,andFoodCourtCongurationsinShoppingCenters,byWayneJ.aylorandRohitVerma,Ph.D.

Vol.10,No.2HowHotelGuestsPerceivetheFairnessofDierentialRoomPricing,byWayneJ.aylorandSherylE.Kimes,Ph.D.

Vol.10,No.1Compendium2010

2010 Roundtable RetrospectivesVol.2,No.1SustainabilityRoundtable2009:TeHotelIndustrySeekstheElusiveGreenBullet.

2010 Industry PerspectivesNo.6TeFutureofMeetings:TeCaseforFacetoFace,byChristineDuyandMaryBethMcEuen

No.5MakingCustomerSatisfactionPay:

ConnectingSurveyDatatoFinancialOutcomesintheHotelIndustrybyGinaPingitore,Ph.D.,DanSeldin,

Ph.D.,andArianneWalker,Ph.D.

No.4HospitalityBusinessModelsConfronttheFutureofMeetings,byHowardLockandJamesMacaulay

2010 ToolsoolNo.13MeasuringthePerformanceofSearchEngineMarketing:wooolsfortheHospitalityIndustryAnilAggarwalandBillCarrollPh.D.

oolNo.14TeWineCellarManagement

ool2.0,GaryM.TompsonPh.D.

2009 ReportsVol.9,No.18HospitalityManagersandCommunicationechnologies:ChallengesandSolutions,byJudiBrownell,Ph.D.,andAmyNewman

Vol.9,No.17CasesinInnovativePracticesinHospitalityandRelatedServices,Set1:AquabyGrandstand,BrandKarma,CapellaHotels&Resorts,Enrip,Hotels.comVisualiser,Luggage

Club,RoyalPlazaonScotts,astings,uneHotels,andVisitBritain.com,byJudyA.Siguaw,D.B.A.,CathyA.Enz,Ph.D.,SherylE.Kimes,Ph.D.,RohitVerma,Ph.D.,andKateWalsh,Ph.D

Vol9No16TeBillboardEect:OnlineravelAgentImpactonNon-OAReservationVolume,byChrisK.Anderson,Ph.D.

Vol9No15OperationalHedgingandExchangeRateRisk:ACross-sectionalExaminationofCanadasHotelIndustry,

byCharlesChang,Ph.D.,andLiyaMa

Vol9No14ProductiersandADRClusters:IntegratingwoMethodsforDeterminingHotelCompetitiveSets,byJin-YoungKimandLindaCanina,Ph.D.

Vol9,No.13SafetyandSecurityinU.S.Hotels,byCathyA.Enz,Ph.D

CHR Publications

Index
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