The Importance Of Standards And Branding For Small Hotels

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T HE IMPORTANCE OF S TANDARDSAND B RANDING FOR S MALLH OTELS SUB – SECTOR OF THEREGION

P RESENTATION The importance and impact of Standardsand Branding in general for the small hotelsub-sector The Brands and Standards of the STEPProgramme Credible Brands and Standards for smallproperties

Sharing of recommendations based onfinding of from the Report UpdatingBrands and Standards, Small TourismEnterprise Network (STEN) ProjectJuly 2011

I NTRODUCTION Hotels are expected to provide their guestswith the best of everything Small hotels in the Caribbean are aiming toprovide the best service they can and thepeople factor will make the huge difference It is crucial that the design of the hotel andservice it offers, follow concepts of qualitystandards implementation.

M AINTAINING THE LEVEL OFSERVICE THAT IS REQUIRED through understanding guests’expectations, setting service standards to meet theseexpectations, training the staff to follow these servicestandards, guiding the guests’ experiences, and identifying and closing service gaps.

W HAT IS THE VALUE OFESTABLISHING S TANDARDS ? To determine the level of performancerequired And how that performance should feelto the guest. Guests are seeking consistency andquality at the right price

S TANDARDS Standards act as a quality minimumnot a steadfast rule Standards create cohesivenessnecessary to the survival of a hotelbrand Standards are critical in creating BrandEquity

Standards are hard to maintain butwithout them where would the brandbe?

S OME CRITICAL A REASWHERE S TANDARDS CAN BEAPPLIED Reservation services Arrival services Check-in Evening housekeeping Wake up call Room service (ordering and delivery) Check-out Departure services

I MPORTANCE AND IMPACT OFS TANDARDS Service standards should be set, implemented,and evaluated or DIM with the guests in mind. These Standards also help give the guests anidea as to what they should be expecting fromthe small hotel The service standards provide the staff withguidelines as to what they should be doing fortheir guests. Standards help to identify and close servicegaps.

THE SMALL HOTEL Cottage Villa Bed and breakfast Small resort Inn These hotels should hold a certain mystiquethat invites their guests to continually return

P ULL FACTOR : Q UALITYS TANDARDS It is important that the service standardssmall hotels provide their guests meets orexceeds their expectations, by doing so, theguest will leave satisfied. Standards are hard to maintain but withoutthem the Brand would be lost Standards act as a quality minimum not asteadfast rule

Standards are critical to maintainingBrand Equity Standards create cohesivenessnecessary to the survival of a hotelbrand

T HECONCEPT OFB RANDS

B RANDINGThe term branding has traditionally been used with thepromotion of products Modern day meaning “ to implant on the mind” American Marketing Association Definition-“ A name term, sign, symbol or design, or a combination ofthem, intended to identify the goods and services of oneseller or group of sellers and to differentiate them from thoseof the competition.”

B RANDING D OMINANT T RENDIN THE H OTEL I NDUSTRY Branding/ re-branding can positivelyimpact customer purchasepreferences and intentions,satisfaction and loyalty and a firm’sfinancial performance.

W HATIS AB RAND The product or service of a particular supplierwhich is differentiated by its name orpresentation A brand is actually a promise given by thecompany to its consumer about what theproduct can give to the consumer.

H OTEL B RANDS

Travelers expect more than comfortand convenience Looking for an experience that lookand feel different from the traditionalbranded hotels Era of Boutique Hotel- experience withmembers of the hotel staff e.g. ACaribbean small hotel

Effective branding strategies canincrease customers’ satisfaction andstrengthen customer loyalty, which inturn contribute to a company’sfinancial performance and as a resulta potential source of strategicadvantage.

I MPORTANCE AND IMPACT OFBRANDING A product brand is not only a name forthat product or for a hotel. A brandwill always be connected to acompany’s identity which will remindthe consumer about its performance.

VALUEOF THEB RAND The value of a brand is based on theawareness of the brand, its qualityperception, and overall customersatisfaction (Aaker, 1991). Satisfied customers of a BRAND tendto buy more, be less price conscious,and to generate positive word-ofmouth, thus contributing to bottomline profit

From the hotel owner’s perspective,affiliating with an appropriate brandwith the correct position can allowthem to leverage on the brand’sestablished name to increaseawareness of their property andmarket value (O’Neill & Xiao, 2006). This is especially useful if the hotel isrebranding in reaction to changes inmarket demand or market segment.

Effective hotel branding can also increase thelevel of reliability and risks associated withthe hotel perceived by the consumer, andpositively influence their consumptionbehavior as consumers will tend to purchasefrom brands they trust and are more familiarwith (Bateson & Hoffman, 1999; Berry,1999). In turn, owners can enjoy stronger customerloyalty and charge higher rates for greaterfinancial returns (Kayaman & Arasli, 2007).

Due to this intangible nature of the service“product,” consumers are “forced” to anchortheir decision based on relativelydependable cues such as the firm’s imageand reputation Brands in the Hotel industry today are morethan the concrete symbols associated withthem today they represent a lifestyle choiceand create a whole new meaning system

Branding prescribe the look feel andfunction of the hotel Brand create a psychological andemotional experience for the guest

T HE FOUR CONSTRUCTS OF CUSTOMER BASED HOTEL BRAND EQUITY HAVE BEENIDENTIFIED TO BE brand loyalty, brand awareness, perceived quality and brand image (Aaker, 1991; Bailey& Ball, 2006; Prasad & Dev, 2000; Yoo& Donthu, 2001)

B ENEFITSOFB RANDING Introduces stability in the business Helps guard against competitive imitation Allows consumers to shop with confidence Reduces marketing cost Decreases operating cost Increases referrals Provides competitive advantage

Hotel operators should recognize thatonce they've developed a clearlydefined brand, they need to work hardto maintain the standards andqualities associated with it.

C ARIBBEAN E XPERIENCES

S TEP The Small Tourism Enterprise Program (STEP)was designed to provide assistance to smalltourism enterprises and Hotels to enhancetheir competitiveness. STEP provided training in product and services delivery, a mechanism to embrace internationalstandards, avenues for cost-effective marketing.

Updating and Revise The CaribbeanExperiences Brand, under SmallTourism Enterprise Network (STEN)Project July 2011

M AJORFINDINGS STEP implemented activities and resourceswere off the radar and most tourism officialsin place today were not familiar with theProject or its outputs That it appeared that there was a waste ofresources as stakeholders were not utilizingthe resources already in place. In several of the countries personnel arebusy creating standards for the sectorwithout the benefit of the standardsproduced under the STEP Programme

In terms of STEP project implementation By the time the Caribbean Experiences BrandWebsite had been introduced and promoted,many of the smaller properties had alreadygone ahead and got their individual WebSites done. There was therefore little or noutilization. In most of the STEP Countries there was theneed for real public/private sectorpartnership. The term was being applied butin actuality the partnerships were eitherweak or non-existent

R ECOMMENDATIONS An awareness, education campaign belaunched to review/launch STEP/STENactivities – This could be a national campaignusing peer leaders, testimonials, flyers andradio and television promotions. TheCampaign must emphasize the evocation of agenuine Caribbean Experience. That the Coordinator role be defined toensure sustainability. Use of a performancebased job description could be used to helpto determine the coordinators that areassigned.

That the OAS puts a mechanism in place forperformance management of thecoordinators to include goals,communication, contact with stakeholders,quarterly reports etc. A workshop is conducted for keystakeholders on the STEP resources and theiruses e.g. Caribbean Experiences, TheInnkeeper

38S TANDARDS AND B RANDING ARE P RINCIPLES FORATTAININGW ORLD -C LASS S TATUS There must be a shared company vision Management must do more than simply what is necessary Managers must know how to play host to all people The community must value the hotel Culture must be seen as a resource

Human resources must be treated as assets Training must be continuous at all levels Communication must be systematic The delivery system must meet the promisesmade by marketing Details matter Management must continuously find ways toimprove the hotel’s image

C REATE THE B ALANCETHROUGH S TANDARDS ANDB RANDING Balance between marketing, operationalprocedures, and brand asset value in thesmall hotel industry sub-sector through greathotel management and leadership

QANDA

Brand Equity Standards create cohesiveness necessary to the survival of a hotel brand . THE CONCEPT OF BRANDS. BRANDING The term branding has traditionally been used with the promotion of products Modern day meaning “ to implan

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