HOW MANY TIMES CAN ONE REINVENT A HOTEL BRAND?
Are we never satisfied with a great product? Do we always have to find a 'new and improved' version? Can we not build in 'perpetual improvement' into the brand in the first place?
I have never been in the retail business so do not know whether my dishwasher soap needed to be reinvented every year or so. Apparently it does, otherwise the 'new and improved' phrase would not appear every day on the shelves and in the newspapers promoting this newly concocted product.
In automobiles, it scares me. Why did they have to throw out every part that was 'new and improved' in my model purchased last year. Was it faulty? Did they screw up that badly? *
InterContinental, the brand leaders in our franchising industry, not so much for their InterContinental name but for their Holiday Inn brand, has announced a new brand re-launch of the basic HI brand. Not the HI Select, not the HI Sunspree, not the HI Express, just the HI.
It caught my eye because they went through that twice before when they wanted to filter out some of the measly franchisors who did not keep up their product quality.....and reward others. Some were bleeding their properties and thence the brand.....a new sweep was called for and a new brand extension, Crowne Plaza and then Holiday Inn Select were born and those with the old green sign and no moniker were left in the dust.... or were they?
Can we see the day when Four Seasons introduces Five Seasons or Three Seasons? I doubt it. Or will Marriott subsegment a Ritz Carlton in suburbia to a Carlton Inn or a small boutique city centre property to an Auberge Ritz....I also doubt that! Although using Barry Sternlicht's keen eye for signage economy with his brilliant "W" projects, perhaps an "AR" might be a first step for Auberge Ritz?!!! Actually, it has a nice relaxing ring to it..............AAAAARRRRRR.
Or perhaps Marriott's base brand could sub-segment and Alberghi Marrio's would hit the streets in Little Italy city sections around the world with specialty Sports Bar combos called RRiots.
Then why does the mother of them all keep having to spin off what are now know as Holiday Outs. In fact a brand was born from that piece of corporate surgery in the early 90s when they went through the same excercise and ended up mailing the franchise fees to a competitor. New signage for the loyal owners, new standards created by a new wave of MBAs and their new brand managers, such a waste of money when all it takes is brand discipline, agility and teeth.
What is brand discipline you may well ask? What will it take to build a brand that has stability, consistency, standards that are not standard.....and built in quality? It is an unrelenting focus on guaranteeing the quality of the FF & E, the services, the F&B and guest loyalty/satisfaction. This is needed by both the franchisor and the franchisee. Put another way...it is needed by the licensor and the client........and therin lies the rub.
Does the licensor have enough 'chutzpah' to eliminate a client just for the sake of some worn carpet, some sagging mattresses, dated bathrooms or faded drapes? Or is it easier to provide that loyal client with a waiver for renos that are then deployed to next ....or future years........and keep the revenue stream coming.
Will it take another pendulum swing where franchisors become managers again, and franchisees are disenfranchised? Will the owners of the brands need to recognise that standards are not delegatable by written agreements nor can they be policed by company negotiators.
I think it should but it won't.
I believe that the management of a brand is a very personal thing, not open to diverse interpretations nor financial difficulties. It is a strong statement of a position. A powerful statement of style......not something that gradually deteriorates and then needs to be re-named. That is a cop-out. A total departure from the basic principles of the brand which were established in good faith.
It is however the way our industry works. The day that each hotel opens is the best day of the rest of its life. From that point on, its carpets and mattresses start to wear, its' sheets and drapes gather dust and grime and the youthful staff each take one day closer to retirement.
As long however as there are new names to throw at sub-standard generators of franchise fees, there will always be a new name for those that excel. It is just not fair for those that toe the line and those enthusiastic employees of all ages who try to make up for the shortfalls of the owner or franchisor.
"Quality is never an accident......................it is always the result of calculated effort."
See also "New & Improved, Oh Really?"
http://www.fool.com/investing/value/2006/01/27/new-and-improved-oh-really.aspx
If you are in need of franchise advice, contact [email protected]
* Actually I drive a Lexus so do not have to buy a new car every year. They just build in perpetual improvement..... so whenever I am ready, I know they will be.
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