Contemporary Issues In Hotel Industry

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BX772102
Contemporary issues in Hotel Industry
Name: Ranveer Singh
Student ID:
Critiquing Published Article: Hotel Brand Strategy

1 .Assumption: Brand management
A hotels brand drives the operating ratios that are co related with a hotel property market value. Some brands consistently have strong net operative incomes than do others while other brands report consistently strong average daily rates than others do. (Oneill and Mattila 2006)
Our study indicates that consumers are typically willing to pay a price premium for brands they view as high in quality. (Oneill and Mattila 2006)
Hotel brands first create value for guests by helping to assure them of a uniform level of quality. (Oneill and Xiao2006)

• Reasoning & evidence :
The hotel
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3. Assumption: Franchising
Franchising presents are set of special considerations for brand management. According to Keller 1993 favourable, strong and unique brand are stored in memory when the consumer possess familiarity with the brand. Therefore the extension of the familiar brand names such as Hilton developing the Hilton grand inn brand should find themselves in potential guests.
The financial advantage of brand extension is that it provides forms not only with higher profit but with savings in marketing expenses. (Lane and Jacobson 1995)
The percentage of franchisee units within a hotel brand has been shown to be negatively co related with both guest satisfaction and occupancy percentage.

• Reasoning & evidence:
Franchising presents a set of special considerations for brand management when the owner of the brand is not the property operator, issues may arise both in terms of consumer perceptions and a as franchises willingness to sign with a chosen brand. An issue that arises in franchise is potentially adverse effect on the brand perception in a property which is owned by third
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First the study is limited to only five-star hotels. Thus, future research should attempt to examine brand equity across many different hotel categories. This will provide the opportunity to make comparisons between different hotel products. The results of this study will be more representative if the research is conducted through probability examin method. It should also be noted that no performance measurements have been conducted in this study due to inability to gather the required financial data which Include performance measurement and financial performance of the studied hotels, for example revenue per room and annual occupancy rate will further strengthen this study. An odd finding of this study, based on the empirical results of the path analysis, was that of the components of perceived quality as suggested by Parasuraman et al. (1988), assurance was found to have no direct relationship with any component of customer-based brand equity. As mention in the discussion section, this might show that this 5 component models of perceived quality is not applicable to the five-star hotels. Further research into this claim would clear this suggestion. As for future research, the scale developed here can be used to measure consumer-based brand equity in other service sectors, introducing the necessary adaptations, in line with their balance of service characteristics such as their mix of

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