Selina, a hotel and experiences brand focused on youth travelers, said on Wednesday that its financial metrics were trending in the right direction as it reported earnings results.
25.08.2023 - 14:21 / skift.com / Sean Oneill
Appealing to people’s emotions is becoming a more effective way for hotel groups to woo travelers because guest needs are evolving in ways that undercut the traditional branding recipe. Many hotel executives are fine-tuning what their brands stand for and how they communicate that message to guests as they try to grab market share.
For years, chains have upheld brand standards, namely, the rules that property owners agree to live by when they enter franchise or management agreements with hotel groups. Brand standards have specified everything from which signs should be out front, what types of thread count are okay for the bedsheets, and often the price ranges that the hotels should charge. The purpose of brand standards has been to create consistency, regardless of who may own properties. The contrast with the relative unpredictability of independent hotels has helped brands grow.
Yet today, fewer guests rely on traditional brand messaging as the decisive reason to choose a hotel. In the past, travelers had less access to information, so the sign out front of a property carried more weight by conveying a promise of consistent quality. But now, every smartphone can bring up a mix of reviews and social recommendations specific to an individual property. Perhaps there’s a swimming pool, as is required by the brand standards, but it’s out of service at a particular location. Or maybe reviews fault the local staff for lack of hospitality. The spread of digital information has undermined the selling power of national brand pledges to deliver things like consistent quality pillows, carpeting, and fresh waffles for breakfast.
“Engaging with emotion is the next frontier in hospitality branding, especially at the upper end of the business,” said Chekitan Dev, the Singapore Tourism Distinguished Professor at Cornell University’s Nolan School of Hotel Administration and author of Hospitality Branding.
Emotional appeals by hospitality brands are also becoming more important to hotel branding, partly in response to societal change. Many people have become lonelier in their day-to-day lives. In the U.S., the amount of time the average American spends with friends has dropped since 2013, when it was six-and-a half hours a week, to only four hours a week in 2019, and then further down to only two hours and 45 minutes a week in the pandemic year of 2021, according to the Census Bureau. The percentage of U.S. households with a single resident has risen to 29 percent, up from only 13 percent in 1960, the Census Bureau said.
While the U.S. is only one country, data elsewhere points to a trend in many countries of digital infotainment and other social dynamics driving increased isolation among individuals. This trend
Selina, a hotel and experiences brand focused on youth travelers, said on Wednesday that its financial metrics were trending in the right direction as it reported earnings results.
Hilton said Thursday that it plans to install at least six electric vehicle chargers per property at 2,000 hotels in North America, and will buy devices from Tesla. Once it fully installs them, Hilton will own more electric vehicle chargers than any other U.S.-based hotel group.
Earnings seasons for the hotel sector is nearly over, and one striking aspect of executive comments on calls with investors was the resilience of development pipelines for hotels belonging to brands run by global groups. For new construction, conversions, and franchise signings, hotel companies painted an optimistic picture.
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Kerzner International has unveiled its new brand Siro, a set of fitness-themed lifestyle hotels. The developer said on Wednesday that it has slated to open its first property in a tower in One Za’abeel, a luxury community in Dubai, U.A.E., in the last months of 2023.
While 2022 was a post-pandemic boom year for hotel demand in much of the world, total global hotel investment volume decelerated slightly to $71.9 billion, a decline of 2 percent relative to 2021. The relative lack of outbound Chinese hotel investment, the Russian war in Ukraine, and recessionary pressures in several markets tamped down the pace of growth.
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.
The U.S. hotel sector will this year finally surpass 2019 levels on a few performance metrics, according to research commissioned by the country’s largest hotel lobby.
Hilton Worldwide is rolling out its first-ever hotel brand in the economy slice of the market, Spark by Hilton, taking on rivals such as Marriott International, Choice, and InterContinental Hotels Group in this competitive market segment.
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.
It’s been a boom time for the hotel industry in the United Arab Emirates, as recent news items in Skift’s Daily Lodging Report have recently shown.
Good morning from Skift. It’s Tuesday, January 24. Here’s what you need to know about the business of travel today.