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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/8/6/2019 Brand Roundtable
3/20
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:
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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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6 TeCenterforHospitalityResearchCornellUniversity
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
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CornellHospitalityRoundtableProceedingsJune2011www.chr.cornell.edu 7
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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8 TeCenterforHospitalityResearchCornellUniversity
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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CornellHospitalityRoundtableProceedingsJune2011www.chr.cornell.edu 9
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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10 TeCenterforHospitalityResearchCornellUniversity
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
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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
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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
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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
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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
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CornellHospitalityRoundtableProceedingsJune2011www.chr.cornell.edu 15
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
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16 TeCenterforHospitalityResearchCornellUniversity
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
8/6/2019 Brand Roundtable
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CornellHospitalityRoundtableProceedingsJune2011www.chr.cornell.edu 175244004.1
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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.
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Brand Roundtable
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CornellHospitalityRoundtableProceedingsJune2011www.chr.cornell.edu 19
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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