Aureli forlani pencarelli_sgbed-ancona-2014

Brand management in the hotel industry:
from company to network brand.
Opportunities and limits of
networking for small-sized hotels
Aureli S. - Forlani F. - Pencarelli T.
Ancona – 17/07/2014
THE 13th INTERNATIONAL CONFERENCE
OF THE SOCIETY FOR GLOBAL
BUSINESS & ECONOMIC DEVELOPMENT

Agenda
1. Background and objectives and of the study
2. Literature review
3. Methodology
4. Findings from empirical analysis
5. Concluding remarks

Background
Importance of intangibles resources in the tourism sector
and the hotel industry in particular (Pencarelli and Gregori, 2009; Krambia-
Kapardis and Thomas, 2006; Nemec and Mihalic, 2007; FitzPatrick et al. 2013).
Brand is a key success factor and source of competitive
advantage which leads to revenue (O’Neill and Mattila, 2004, 2010; Hong-
bumm Kima and Woo Gon Kim, 2005; O'Neill and Carlback, 2011).
Doubts about SMEs’ capability to design and manage a
brand (is brand management a too complex activity?)
Italian SMEs collaborate through consortia, associations,
product clubs and network contracts to attract customers;
sometimes creating brand alliances (Aureli and Forlani, 2013).

RQ1 – Do small-sized hotels consider hotel brand a
key success factor?
RQ2 – Do small-sized hotels devote attention to
brand management?
RQ3 – What’s the role of hotels’ networking
strategies in brand management?
Research Questions

Literature review:
Brand and Brand Management
Brand is a name, sign, symbol, etc. used to identify the seller’s
products and distinguish them from those of its competitors (Kotler
and Scott, 2002) which embodies tangible and intangibles attributes
that are relevant for the customer
Brand management refers to the process by which the brand is
laden with meanings and the combination of actions carried out to
maintain and improve the brand’s reputation and distinctiveness
(Pratesi and Mattia, 2006) :
- Design of the brand identity
- Brand positioning
- Brand Marketing and Monitoring
- Brand architecture

Literature review:
Brand usage in tourism
Attention on how the hotel brand relates to the brand of
the chain, association or network the company belongs
to and to the brand of the destination (Pencarelli and Splendiani,
2008; Pencarelli, Betti and Forlani, 2009; Aureli and Forlani, 2013).
When territorial/place brands are consonant with the
local business actors’ values and brands, the
effectiveness of the marketing policy of these
businesses augment and the potential benefits
achievable increase

Literature review:
Networking strategies among
tourism actors
Italian hotels are used to collaborate but mainly informally or
through consortia, associations and product clubs; whereas
abroad we can find large multinationals and multiple brand
affiliations (Bailey and Ball, 2006; Lomanno, 2010)
One of the key benefit of brand affiliation is obtaining a strong
brand which translates into higher occupancy rates deriving
from customers attracted by the hotel chain brand’s promises
However individual hotel owners need to be sure that the
chain’s branding strategies are appropriate for its property (O’Neill
and Mattila, 2006) -> brand consonance

Methodology
Focus on the Province of Rimini
Identification of formal networks through the national dataset of
the Chambers of Commerce -> one network contract named
“Made in Rimini-Holidays” formed in May 2013 by three hotel
consortia (network of networks)
“Made in Rimini-Holidays” groups more than 100 hotels, which
represents about 10% of the total lodging offer.
Random selection of three hotels for each consortium
Face-to-face, semi-structured interviews with hotel
owners/mangers at each hotel premises
Topics investigated: HOTEL BRAND; BRAND MANAGEMENT;
NETWORK PARTECIPATION

Hotel characteristics
Selected hotels :
- are exclusively three- and two-star hotels (50% each)
- run by owners
- small-sized: with less than 50 rooms (63%) or a number of rooms comprised
between 50 and 100 (37%); employing less than 20 people
- targeting mainly Italian tourists (foreigners represent 12% of total guests)
The three consortia are:
- “Hotel Tipici Riminesi” (Typical hotels of Rimini) which groups hotels located in
some fractions of Rimini aiming to promote themselves and the territory where
they are located emphasizing the local traditions and culture, make joint
purchase and offer staff training to the associated hotels
- “Torre Pedrera Hotels” which groups hotels located in a fraction named Torre
Pedrera aiming to promote this specific area by providing information about
lodging firms, public services and events to both tourists and inhabitants
- “Piccoli Alberghi di Qualità” (Small Quality Hotels) which groups hotels located in
Rimini and other nearby cities (Riccione, Cattolica, Misano) aiming to improve
their efficiency and combine it with the local culture of hospitality (small family-run
hotels with high quality standards)

Findings
11111113Hotel brand popularity
(international)
21111114Hotel brand popularity
(national)
23224454Hotel brand popularity (local)
54554545Impact of financial resources
on brand popularity
43443533Brand as key success factor
RQ1 – Do small-sized hotels consider hotel brand a key success factor?
5-point Likert scale (1= strongly disagree; 5= strongly agree)
- Small hotel owners consider hotel brand an important key success factor whose
popularity strongly depends from the amount of financial resources invested.
- However, hotel brand is scarcely recognized sometimes even in the local area of
Rimini.

Findings
5,00%20,00%5,00%2,50%2,50%7,00%3,00%3,00%Financial investments in
promotion (% of annual
turnover)
Content
management
on FB,
Twitter,
Google+;
partecipation
to the
consortium's
websiste and
other local
tourism portal
(i.e.
Riminibeach)
; seasonal
greatings;
trade fair
participation
Content
management
on Hotel
website, FB,
creation of
newsletters;
limited
advertising
on
newspapers
Advertise on
free press;
content
management
on Hotel
website, FB,
Twitter,
Pinterest,
Google+;
participation
to the
consortium's
website and
local tourism
portals (i.e.
Riminidamar
e)
Content
management
on Hotel
website, FB,
Flickr,
Twitter,
Youtube;
promotion on
the local free
press and
internet
portals
Renewal of
the Hotel
website;
presence on
the tourism
portal "Rimini
beach";
presence on
OTA
(Venere.com,
Booking.com)
, FB, Twitter
Theatrical
setting, use
of mascot
representing
the summer;
content
management
on Hotel
website, FB,
Pinterest,
Google+;
seasonal
greetings
cards; trade
fair
participation
Content
management
on Hotel
website, FB,
Twitter;
presence on
Travel web
site
(Tripadvisor
& OTA);
advertising
on
newspapers;
trade fair
partecipation
with the
consortium
Content
management
on Hotel
website, FB,
Youtube;
trade fair
partecipation
(alone and
with the
consortium)
Activities carried out to support
the hotel brand
Systematic
use of logo in
hotel
communicati
on; payoff: "A
small jewel
just a few
steps from
the sea"
Registered
trademark;
familiar and
easy to
remember
name; payoff:
"Your house
by the sea"
Revision of
the logo to
evoke the
sea and
summer
(inserting a
boat and the
sun)
Revision of
historical
name to
communicate
the concept
of beach and
the sea
Revision of
historical
name to
emphasize
hotel's
location by
the sea
Improvement
of historical
logo and
hotel name
from a brand
management
perspective;
seasonal
slogans
NoRevision of
the historical
name in the
phase of
requalificatio
n and
enlargement
of the hotel
Brand identity system (Logo,
Naming, Payoff)
YesYesNoYesNoYesNoNoCreation of a brand identity to
communicate the hotel
RQ2 – Do small-sized hotels devote attention to brand management?

Findings
- Creation of a brand identity is rare: three hotels declare to have created it,
but they are not always able to describe its components (which are absent)
nor they have identified the intangible attributes associated to the brand;
moreover hotel name have all historical roots linked to personal owners’
experiences
- Management activities are limited to web marketing, social network
communication, advertising on traditional media and internet. They are not
implemented with the aim to exploit hotel brand but they are more similar to
traditional promotional activities.

Findings
Rimini is a
large city;
the fraction
indicates
customers
that the
hotel is
walking
distance
from the
beach
Emphasize
hotel's
location in
the city of
Rimini and
not in any
of its
fractions
Rimini is
the hotel
location
Rivazzurra
because it is
the specific
hotel's
location
Rimini is
the hotel
location
Rimini has
a greater
visibility
while Torre
Pedrera is
small and
not well
known
To highlight
the area
around
Rimini and
its
characteristi
cs
(tranquillity
)
Torre
Pedrera is a
very quiet
place and
its image is
more
consistent
with the
hotel's
target
Reasons for the choice of
the territorial brand
Miramare -
fraction of
Rimini
RiminiRiminiRivazzurra -
fraction of
Rimini
RiminiRiminiTorre
Pedrera –
Rimini –
Romagna's
Coast
Torre
Pedrera –
Rimini's
Coast
Territorial (place) brand
associated with the hotel
Piccoli
hotel di
qualità
Piccoli
hotel di
qualità
Hotel Tipici
Riminesi
Hotel Tipici
Riminesi
Hotel Tipici
Riminesi
Torre
Pedrera
Hotels
Torre
Pedrera
Hotels
Torre
Pedrera
Hotels
Network participation
Hotels’ brand architecture does not emerge as the outcome of an analytical process

Findings
Creating a strong network brand is not a priority in hotels’ networking strategies. Nor
hotels seem to question about brand coherence (with one exception)
No, the two
brands are
placed side
by side
No, high
investments
are needed
to achieve
this effect
No, the two
brands are
placed side
by side
No, however
it could be a
benefit if it
works like for
hotel chains
No, however
the network
brand
represents
an
opportunity
NoYesYes, if the
network
brand
functions it
will prevails
(like for hotel
chains)
In customers' perception, the
network brand replaces/could
replace the hotel brand
21111131Network brand popularity
(international)
(national)
(local)
Yes concept
of co-
branding
NoNoNoNoNoNoNoChanges in brand
management derived
from/after the collaboration
To inform
customers
about the
quality of
small hotels
by using the
network
brand; Share
experiences
and
problems
To increase
and
communicate
hotels'
quality; to
strengthen
the whole
category of
small hotels
in Rimini
To increase
the capacity
of
communicati
on; Cost
savings;
Create
activities and
services for
guests
(guided
tours)
To
differentiate
from
competitors;
Create
events and
activities for
clients;
Reduce
costs
First to
enhance the
territory, its
traditions and
products;
Second to
participate in
trade shows;
Cost savings
Cost saving;
Communicati
on and trade
fair
participation;
Use of the
booking
portal
Promotion
and
commercializ
ation (with
on-line
booking); To
liven up the
fraction of
Torre
Pedrera
Cost saving,
promotion
and
marketing;
More
recently also
internationali
zation
Reasons for joining formal
networks with other tourism
enterprises
RQ3 – What’s the role of hotels’ networking strategies in brand management?

Findings
In hoteliers' opinion the network brand does not increase their
recognizability nor it could replace individual hotel brands in the
customers’ mind.
What occurs for hotel franchising chains is considered impossible by
the majority of respondents because it would require too much
financial resources and it is believed to works only for proprietary
chains.
Hotels communication and hotel brands mainly leverage on the brand
of the territory where they are located underestimating the
opportunities deriving for synergies with the network brand.
In conclusion there are several challenges for small-sized hotels at
both the organizational and network level and several potential
improvements to achieve.

Limitations & Future research
Results are limited to the case studies here analyzed
and the local area investigated.
Future research steps will involve a greater number of
hotels and possible comparisons with medium-sized
and large hotels of the same tourism destination
could be help identify possible difference due to
hoteliers’ personal mindset and managerial approach.

Info and contacts:
Ancona – 17/07/2014
selena.aureli@unibo.it
tonino.pencarelli@uniurb.it
fabio.forlani@uniurb.it

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