Does the world have too many hotel brands already?
In a poll conducted by Hotel Interactive, to the question “What best describes your sentiment regarding franchise development today?”, 57% of respondents agreed to: “There are a good amount of brands, but they need to be more distinct.” And 35% said “There are too many brands, companies need to consolidate.” This appears to imply that there are indeed too many brands. Some in the hotel industry, especially in the US, take the view that there is still demand for new brands. But others agree that in an age where consumers are bombarded with information, companies need to redefine their brands.
Gus Stamoutsos, EVP of franchise development for Wyndham Hotel Group: “We are very large in economy/midscale. As you try to grow brands, you can lose sight of what they really are. So we’re going back and not focusing on the amenities but the essence of what brands are.”
Industry icon Jack DeBoer said that hotel brands should be disciplined in not changing to absorb every new fashionable idea and stay close to what they are.
[pictured: Ramada Plaza Hotel Anaheim, California, USA; courtesy Wyndham Hotel Group]