THE IMPORTANCE OF STANDARDS AND BRANDING FOR SMALL HOTELS SUB-SECTOR OF THE REGION

T HE IMPORTANCE OF S TANDARDS
AND B RANDING FOR S MALL
H OTELS SUB – SECTOR OF THE
REGION

P RESENTATION
   The importance and impact of Standards
    and Branding in general for the small hotel
    sub-sector
   The Brands and Standards of the STEP
    Programme
   Credible Brands and Standards for small
    properties

   Sharing of recommendations based on
    finding of from the Report Updating
    Brands and Standards, Small Tourism
    Enterprise Network (STEN) Project
    July 2011

I NTRODUCTION
   Hotels are expected to provide their guests
    with the best of everything

   Small hotels in the Caribbean are aiming to
    provide the best service they can and the
    people factor will make the huge difference

   It is crucial that the design of the hotel and
    service it offers, follow concepts of quality
    standards implementation.

M AINTAINING THE LEVEL OF
SERVICE THAT IS REQUIRED

   through understanding guests’
    expectations,
   setting service standards to meet these
    expectations,
   training the staff to follow these service
    standards,
   guiding the guests’ experiences,
   and identifying and closing service gaps.

W HAT IS THE VALUE OF
     ESTABLISHING S TANDARDS ?

   To determine the level of performance
    required

   And how that performance should feel
    to the guest.

   Guests are seeking consistency and
    quality at the right price

S TANDARDS

   Standards act as a quality minimum
    not a steadfast rule
   Standards create cohesiveness
    necessary to the survival of a hotel
    brand
   Standards are critical in creating Brand
    Equity

   Standards are hard to maintain but
    without them where would the brand
    be?

S OME CRITICAL A REAS
    WHERE S TANDARDS CAN BE
                               APPLIED
   Reservation services
   Arrival services
   Check-in
   Evening housekeeping
   Wake up call
   Room service (ordering and delivery)
   Check-out
   Departure services

I MPORTANCE AND IMPACT OF
                    S TANDARDS
   Service standards should be set, implemented,
    and evaluated or DIM with the guests in mind.
   These Standards also help give the guests an
    idea as to what they should be expecting from
    the small hotel
   The service standards provide the staff with
    guidelines as to what they should be doing for
    their guests.
   Standards help to identify and close service
    gaps.

THE SMALL HOTEL

   Cottage
   Villa
   Bed and breakfast
   Small resort
   Inn

   These hotels should hold a certain mystique
    that invites their guests to continually return

P ULL FACTOR : Q UALITY
                     S TANDARDS
   It is important that the service standards
    small hotels provide their guests meets or
    exceeds their expectations, by doing so, the
    guest will leave satisfied.
   Standards are hard to maintain but without
    them the Brand would be lost
    Standards act as a quality minimum not a
    steadfast rule

   Standards are critical to maintaining
    Brand Equity
   Standards create cohesiveness
    necessary to the survival of a hotel
    brand

T HE   CONCEPT OF   B RANDS

B RANDING

The term branding has traditionally been used with the
promotion of products

•Modern day meaning “ to implant on the mind”
•American Marketing Association Definition

-“ A name term, sign, symbol or design, or a combination of
them, intended to identify the goods and services of one
seller or group of sellers and to differentiate them from those
of the competition.”

B RANDING D OMINANT T REND
    IN THE H OTEL I NDUSTRY

   Branding/ re-branding can positively
    impact customer purchase
    preferences and intentions,
    satisfaction and loyalty and a firm’s
    financial performance.

W HAT         IS A     B RAND

   The product or service of a particular supplier
    which is differentiated by its name or
    presentation

   A brand is actually a promise given by the
    company to its consumer about what the
    product can give to the consumer.

H OTEL B RANDS

   Travelers expect more than comfort
    and convenience
   Looking for an experience that look
    and feel different from the traditional
    branded hotels
   Era of Boutique Hotel- experience with
    members of the hotel staff e.g. A
    Caribbean small hotel

   Effective branding strategies can
    increase customers’ satisfaction and
    strengthen customer loyalty, which in
    turn contribute to a company’s
    financial performance and as a result
    a potential source of strategic
    advantage.

I MPORTANCE AND IMPACT OF
                            BRANDING

   A product brand is not only a name for
    that product or for a hotel. A brand
    will always be connected to a
    company’s identity which will remind
    the consumer about its performance.

VALUE       OF THE      B RAND

   The value of a brand is based on the
    awareness of the brand, its quality
    perception, and overall customer
    satisfaction (Aaker, 1991).
   Satisfied customers of a BRAND tend
    to buy more, be less price conscious,
    and to generate positive word-of-
    mouth, thus contributing to bottom-
    line profit

   From the hotel owner’s perspective,
    affiliating with an appropriate brand
    with the correct position can allow
    them to leverage on the brand’s
    established name to increase
    awareness of their property and
    market value (O’Neill & Xiao, 2006).
    This is especially useful if the hotel is
    rebranding in reaction to changes in
    market demand or market segment.

   Effective hotel branding can also increase the
    level of reliability and risks associated with
    the hotel perceived by the consumer, and
    positively influence their consumption
    behavior as consumers will tend to purchase
    from brands they trust and are more familiar
    with (Bateson & Hoffman, 1999; Berry,
    1999).

   In turn, owners can enjoy stronger customer
    loyalty and charge higher rates for greater
    financial returns (Kayaman & Arasli, 2007).

   Due to this intangible nature of the service
    “product,” consumers are “forced” to anchor
    their decision based on relatively
    dependable cues such as the firm’s image
    and reputation

   Brands in the Hotel industry today are more
    than the concrete symbols associated with
    them…today they represent a lifestyle choice
    and create a whole new meaning system

   Branding prescribe the look feel and
    function of the hotel

   Brand create a psychological and
    emotional experience for the guest

T HE FOUR CONSTRUCTS OF CUSTOMER -
BASED HOTEL BRAND EQUITY HAVE BEEN
                   IDENTIFIED TO BE

   brand loyalty,
   brand awareness,
   perceived quality
   and brand image (Aaker, 1991; Bailey
    & Ball, 2006; Prasad & Dev, 2000; Yoo
    & Donthu, 2001)

B ENEFITS           OF    B RANDING
   Introduces stability in the business
   Helps guard against competitive imitation
   Allows consumers to shop with confidence
   Reduces marketing cost
   Decreases operating cost
   Increases referrals
   Provides competitive advantage

   Hotel operators should recognize that
    once they've developed a clearly
    defined brand, they need to work hard
    to maintain the standards and
    qualities associated with it.

C ARIBBEAN E XPERIENCES

S TEP
   The Small Tourism Enterprise Program (STEP)
    was designed to provide assistance to small
    tourism enterprises and Hotels to enhance
    their competitiveness.
   STEP provided training in
       product and services delivery,
       a mechanism to embrace international
        standards,
       avenues for cost-effective marketing.

   Updating and Revise The Caribbean
    Experiences Brand, under Small
    Tourism Enterprise Network (STEN)
    Project July 2011

M AJOR        FINDINGS
   STEP implemented activities and resources
    were off the radar and most tourism officials
    in place today were not familiar with the
    Project or its outputs
   That it appeared that there was a waste of
    resources as stakeholders were not utilizing
    the resources already in place.
   In several of the countries personnel are
    busy creating standards for the sector
    without the benefit of the standards
    produced under the STEP Programme

   In terms of STEP project implementation
   By the time the Caribbean Experiences Brand
    Website had been introduced and promoted,
    many of the smaller properties had already
    gone ahead and got their individual Web
    Sites done. There was therefore little or no
    utilization.
   In most of the STEP Countries there was the
    need for real public/private sector
    partnership. The term was being applied but
    in actuality the partnerships were either
    weak or non-existent

R ECOMMENDATIONS
   An awareness, education campaign be
    launched to review/launch STEP/STEN
    activities – This could be a national campaign
    using peer leaders, testimonials, flyers and
    radio and television promotions. The
    Campaign must emphasize the evocation of a
    genuine Caribbean Experience.
   That the Coordinator role be defined to
    ensure sustainability. Use of a performance
    based job description could be used to help
    to determine the coordinators that are
    assigned.

   That the OAS puts a mechanism in place for
    performance management of the
    coordinators to include goals,
    communication, contact with stakeholders,
    quarterly reports etc.

   A workshop is conducted for key
    stakeholders on the STEP resources and their
    uses e.g. Caribbean Experiences, The
    Innkeeper

S TANDARDS AND B RANDING ARE P RINCIPLES FOR
    38                                      ATTAINING
                                W ORLD -C LASS S TATUS
    There must be a shared company vision

    Management must do more than simply what is necessary

    Managers must know how to play host to all people

    The community must value the hotel

    Culture must be seen as a resource

   Human resources must be treated as assets

   Training must be continuous at all levels

   Communication must be systematic

   The delivery system must meet the promises
    made by marketing

   Details matter

   Management must continuously find ways to
    improve the hotel’s image

C REATE THE B ALANCE
     THROUGH S TANDARDS AND
                   B RANDING
   Balance between marketing, operational
    procedures, and brand asset value in the
    small hotel industry sub-sector through great
    hotel management and leadership

Q   AND   A