Hospitality

Hospitality

Brand Transition

 

There are a couple of benefits the consumer has from a branded product. A branded product helps the consumer to identify goods easily and it provides the information needed. It is also a quality indication because people normally know something about the brand and so they believe that the quality standards remained the same. People tend to buy a product from the same brand if they had a good experience with the previous product. If the consumers know were the product comes from or to which brand it belongs it gives them the feeling of being on the save side because he makes the connection with a prior experience. As already mentioned brands are a sign of quality and so the feeling of security increases. Brands stay for a promise of the producer what customers can expect from the product they buy. Clients can trust this promise very easy because there are certain characteristics in each product that have to be same to guarantee the quality. Therefore a branded product helps the consumer to lower the risk in his decision making process. Branded products reduce the risks of making wrong decisions and being disappointed in the end.

Many questions arise on finding the most suitable hotel operator to run your hotel real estate. From an investor or owner point of view, it has not become easier to choose. Hotel brands have been evolving and growing rapidly over the last decade hence, the alternatives to choose are unlimited.

According to an interview with Tess Mattison, Senior Director European marketing Choice hotels, ‘the days that the hotel brand can scale a predefined ‘brand bible’ are over’. A hotel has become much more than “the look and feel”. Hotel brands are moving from being product driven to service driven.

The rise of many new soft brands and boutique collections confirm the rising importance of service. The contemporary consumer is keen on more personalisation, authenticity, experience, technology, sharing, etc. These consumer trends have marked the industry. Operators understand this well and have become more flexible in their negotiations by offering the opportunity of less product standardization and more services. Since services have become that important, the question the investor or owner should ask is what services to expect from the operator and how the operator translates their services to the needs of the building? This could be ‘loyalty programs, staff training, revenue management, IT systems, improved purchasing power, more easy financing to lenders, rooms distribution network, sales & marketing support, brand awareness, specific customer profiles, a proof of concept, etc.;

With a large inventory of hotel brands and boutique collections and the increased importance of services, the investor or owner have much more need to be guided by professionals.

Invest Point Bulgaria offers investors and private owners of hotel real estate a professional search and selection of a suitable operator. This consists of different phases, aimed at identifying, evaluating and concluding the operator that fits best the needs.

Our brand transition services allow ownership to augment their operational results and optimize value when a hotel changes its flag. We know how to evaluate and select the appropriate brand, negotiate the terms, implement the Performance improvement plan, and execute a seamless transition.