Private Label Drinking Water for the Hospitality and Lodging Industry Building Brand Awareness and Customer Loyalty in a Competitive Environment
The Hospitality and Lodging Industry in the United States is booming with strong growth in overall revenues and average price per room. Notwithstanding external factors such as international terrorism and the rapid rise in fuel costs Cheap MLB Jerseys , most industry forecasts predict continued growth in revenue.
Recent studies show however, that the industry suffers from a considerable loss in revenue and profits because of ineffective differentiation of service offerings and branding. This trend is recent because historically hotel customers have demonstrated brand loyalty.
Private label drinking water has been proven to be a powerful, cost effective method of promoting quality brand images and differentiating service offerings.
Opportunity Lost
The Hospitality and Lodging Industry plays a major role in the U.S. economy with business travelers alone accounting for $40 to $50 billion in annual revenue. A recent study however Cheap Jerseys Wholesale , by a recognized research firm, concludes that up to $20 billion in additional revenue is lost because frequent travelers are not loyal to specific hotel brands.1
This revenue deficit represents an opportunity lost for profitability and continued cash flow for the industry.
Brand Loyalty Means Greater Profits
Most analysts and academics agree that loyal customers constitute the basis of a successful business because of new sales cost savings, the ability to sell additional higher margin features to loyal customers and word of mouth or informal referrals to new customers.2
The creation and maintenance of brand loyalty therefore is the strategic objective of many industries with no exception to the Hospitality and Lodging industry. As one study concluded ?Loyal customers are logically at the heart of a company's most valuable customer group.? 3 Therefore Cheap Jerseys Online , the overall importance of customer loyalty could realistically benefit or impede the industry itself.
Without brand loyalty firms in the industry are forced to compete on the basis of price instead of quality; history has shown this to be a losing proposition.
The challenge to the individual manager is the best use of resources in order to create the highest level of customer loyalty. This applies to mid-market hotels as well as major chains and franchises.
Traditional Efforts Are No Longer Effective
Reward programs and superior customer service are no longer enough to establish brand loyalty. Studies have concluded that hotels are failing to increase brand loyalty due to a lack of differentiation and traditional efforts such as rewards and points programs have become commodities in the industry.
Because they are offered by most firms in the industry, rewards programs have changed from service differentiators to service requirements and cost centers. As a result, some analysts have concluded that rewards systems and points programs have become no more than a cost of doing business.4
As a result Cheap Jerseys Free Shipping , there is increased concern that customer loyalty programs are failing to achieve their objectives of increasing customer loyalty and profits.5
Customer service and satisfaction is less of a factor now in establishing and maintaining brand loyalty primarily because competition has created a culture of exceptional customer service. Studies have also concluded that high levels of customer satisfaction do not guarantee brand loyalty unless competitors fail to offer the same level of service.
Many hotels are seeking better ways to create customer loyalty and are exploring the inherent desires of individuals to be loyal to brands they are comfortable with. All industry participants, whether large high end hotels or mid-market firms, must develop more effective ways to develop and communicate their brand propositions.
Focus on Design Cheap Jerseys From China , Services and Amenities to Help Build Brand and Loyalty
To create a memorable lodging experience and to better distinguish their brand proposition, many hotels and franchises are investing in redesigned facilities, new value added and telecommunications services and a broader array of amenities to create brand awareness and customer loyalty.
According to a recent analysis by PricewaterhouseCoopers Cheap Jerseys China , guests at hotels across the country are now greeted by a myriad of new amenities ranging from increased choices for checkout methods to high quality drinking water and in-room exercise equipment. Hotels are adding and improving amenities to achieve incremental revenues, respond to increased consumer expectations and create customer loyalty through quality branding.
In addition to investing in new services and amenities a unified and clear branding message must be developed and conveyed.
Design and the Brand Message
Developing an effective brand message is more than creating a brand statement. The brand message must appeal directly to the emotions of the customer in order to create enduring brand loyalty; and design is one of the most powerful tools for publicizing the brand. It is important to understand that quality of design will significantly improve the quality of the brand message and the resulting brand loyalty.
Therefore, extreme care must be exercised during the brand design and communication process to ensure that the brand message is not diminished.