Global Lodging Forum 2014: what is the acceptable level of brand flexibility to foster international development?

5 min reading time

Published on 01/04/14 - Updated on 17/03/22

Global Lodging Forum 2014 ©MKG Group

Can a hotel brand correspond to the "One size fits all" concept? How much can they adapt to the different markets in their international growth? All these subjects have been discussed on March 17, during the second panel at the Global Lodging Forum entitled "What is the acceptable level of brand flexibility to allow international development?".

Bettina BAMERT, Director Conversions, Marriott International & the Ritz-Carlton Company LLC :

The challenge is always to balance the core principles that make up the brand identity with local relevance in a meaningful way. While many of our brands originate in the United States, we are seeing more and more local adaptation. Two years ago, Courtyard by Marriott for example launched a new prototype for Europe with an adapted guestroom and public space design that better addresses the needs of this specific market. Given the fragmented nature of the European lodging market, we see much of the development potential through conversions of existing hotels and buildings, which naturally require a higher degree of adaptation. Brands that are particularly conversion-friendly are AC by Marriott and the Autograph Collection.

Christian KARAOGLANIAN, Chief Developement Officer, Accor :

Standardized brands appeared in Europe at the end of the 60s and 70s when the hotel industry was in very poor condition and customers needed security. It was also a means achieving economy of scale with an efficient business model. Today things have changed and customers no longer need standards to be reassured and the model is not interesting any more in light of asset light development. This is why we created the All Seasons brand that is now called ibis Styles, in response to the improved average level of the hotel industry and the arrival of hotels with a new look on the economy segment. The most important is to stick to the basics, and even at destinations where we have been asked for adapted services, we are getting back to basics.

David HEIJLIGERS, Senior Director Development, France & Benelux, Hilton Worldwide :

Hampton Inn, now Hampton Inn by Hilton on the European market, is a very American product that we have adapted to clientele on the Old Continent, especially in terms of furniture. We have created a European product. While it is necessary to maintain a certain homogeneity generally speaking, it is nonetheless necessary to not be a fundamentalist of the brand and not oppose local adaptation, especially when it comes to breakfast. We nonetheless have a very international clientele and we are trying to standardize products and have international standards. Flexibility must be reasonable. We also have other brands that are less standardized such as Double Tree by Hilton. For me the two most important things are customer promise and investor promise, and for both you must be able to guarantee results.

David VELY, Senior VP Development Middle East & Africa, Whitbread :

Our international development is modest and we are operating only on a small number of selective markets in India and the Middle East. We are working with partner/ investors and our developments are generally subject to three or four specific requirements. Brand identity does not necessarily lie in a concrete product but rather in the customer’s idea of service and travel. As far as the economy segment is concerned services may be limited in number but not in terms of quality. A hotel must guarantee a good night in a comfortable environment. For example, we promise our guests they may sleep four to a room, and even if this changes from one market to the next the promise will be kept.A brand is first and foremost a promise of service.

Elie YOUNES, Senior VP, Head of Group Development, Carlson Rezidor/Rezidor Hotel Group :

One of the primary reasons why our Radisson Blu and Park Inn by Radisson brands are developing very quickly in Europe is that they are adaptable to the different markets on the continent. Nonetheless it is necessary to find the right balance between the brand’s DNA and its adaption to the local market. As far as concerns Radisson Blu, the brand’s DNA includes innovation, as in the giant aquarium in the lobby at the Radisson Blu in Berlin demonstrates. Moreover, we stopped developing the brand Missoni because when we try to adapt an haute couture brand to the hotel industry, there is a conflict of interest with regard to the commercial aspect of our business. We were unable to achieve our commercial target.

Laurent BONNEFOUS, Director of Development, B&B Hôtels :

The DNA of B&B is flexible and we have been able to develop our products in Germany by adapting them to the local market, and then reproduce the model in Poland and at our other destinations. Regardless of the destinations, the quality of services does not change, it remains a B&B hotel. Nonetheless changes are possible regarding the physical aspect of the properties, especially comforters that are different in France while furniture is different in Italy. France remains our primary market but we are increasing international development, especially in Europe. I believe that the fact that we have slightly different properties does not make us lose customers and that it would be illusory to want to impose anything very specific.

Matthieu EVRARD, Executive Director - Development & Asset Management, Louvre Hotels Group :

The flexibility of a hotel product depends on the segment it is positioned on. Economy categories are more rigid in terms of product as they tend toward the budget category. And inversely, the more upscale the product range, the more flexible it is because it depends more on customer experience and the local market. Moreover, a product may be on the same segment and yet be obliged to make changes depending on the markets because positioning standards are different. For example, in Brazil real estate development only happens in the form of large structures. It is not conceivable to develop a 50 room hotel there. Our strategy consists of using the European source to create domestic demand and once the product is well established on its market, cross-border distribution may be envisaged.

Philippe BIJAOUI, VP Development Europe, InterContinental Hotels Group :

Holiday Inn is a highly developed product in the United States and internationally. If there is one point where this chain is not flexible it is customer satisfaction. We have sacrificed several of our properties to achieve a certain coherence with respect to the brand overall. Holiday Inn Express is a more standard product for which we have relied on the construction of properties to develop it internationally. For example, in Russia we have designed structure in order to be able to continue building in the winter despite extreme climate conditions in this country. I believe that construction is a real adaptation lever for hotel chains to pursue international development.
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