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Global branded hotel operators increasingly focus on the luxury sector in a quest for higher fees. – Image Credit Unsplash+
The Brand Margin research by BVA BDRC measures how much more or less a consumer is willing to pay for a branded product versus an unbranded one or a competitor. This calculation and the consumer’s familiarity with the brand generate a Brand Advantage score.
- Premier Inn, Hilton Hotels & Resorts, and Holiday Inn have maintained their market positions despite Airbnb’s increasing brand recognition.
- The highest brand margins are found in the luxury segment, led by Raffles and Mandarin Oriental.
The latest Hotel Guest Survey from BVA BDRC revealed that top hotel brands such as Premier Inn, Hilton Hotels & Resorts, and Holiday Inn have retained their brand advantage in the market. This comes even as Airbnb makes significant strides in brand recognition, particularly among business travelers.
The Brand Margin research by BVA BDRC measures how much more or less a consumer is willing to pay for a branded product versus an unbranded one or a competitor. This calculation and the consumer’s familiarity with the brand generate a Brand Advantage score.
The survey identified Premier Inn, Hilton Hotels & Resorts, and Holiday Inn as brands that have solidified their positions within their respective tiers—economy, upper full service, and mid-market—effectively gaining a competitive advantage.
Fiona von-Hinten, director of BVA BDRC, pointed out that the study highlights the power of an established brand and how difficult it can be to displace such a brand from the consumer’s mind. Despite having no consistent product or loyalty program, she noted that Airbnb is seeing success through recognition.
Von-Hinten added that understanding guests’ perceptions of hotel brands’ value is crucial in evaluating a hotel brand’s performance and appeal to investors. This includes assessing its market position, brand equity strength, and investment attractiveness.
The study found that the highest brand margins are in the luxury segment, led by Raffles and Mandarin Oriental. Gen Y and the Boomer demographics attribute the highest brand margins across all age groups.
Von-Hinten concluded that the study serves as a reminder of the value of a successful brand for all those making development decisions, as global branded hotel operators increasingly focus on the luxury sector in a quest for higher fees.
