Beating the Competition and Sustaining in the Modern Hotel Industry

2220 Words9 Pages
“The capital of the world is in 23 different places”- this was the tagline used by the General Electric Company when it expanded its business in 1995. It is very valid for India as well. India is emerging as one of the leading economies of the world and the rate of growth in every sector of the economy is immense. The hotel industry is very sensitive to economic cycles and is therefore intrinsically linked to the state of the economy. At present, there are over 462 hotels in the country and the total number of rooms is around 58612. Hotel room supply has increased in 2010-11 by 15% while the nationwide occupancy has increased by 1.7%. Although the growth in supply is a double digit figure but the growth in occupancy signals the fact there…show more content…
“There is a direct company-customer contact-based relationship.”(Moores, 1986) This experience helps hotels achieve distinction against competitors. But at the same time “the communicated value proposition of the brand has to be clear-cut so that potential guests are able to identify the advantage of a hotel in comparison to its competitors” (Daun and Klinger, Delivering the message, 2006).Apart from communication through words, pictures and logos should also be redesigned in order to make an everlasting connection with the guest. “For hotel chains wanting to satisfy the needs of guests and beat the competition, then building a psycho brand provides an opportunity which if realized, could do not only this but also defy the test of time.” (Mehta Gautam, December 17, 2003) Perceptions of brands in the minds of the consumer are formed on the basis of the four main functions of the brain-thinking, sensation, intuition and feeling. Psycho branding is supported by three concepts- Goodyear’s Model of Brand Evolution: Brands act as extensions of the personality. Incorporation of personal characteristics into the brand makes it more appealing to guests. Moment of Identity: The modern guest tries to match her own identity with the identity she relates to the brand. Maslow’s Hierarchy of Needs: It is the driving force for choosing any brand, the one which identifies with self actualisation. For hotel chains wanting to satisfy the needs of
Open Document