Many large groups have decided recently to own fewer properties and focus on management contracts and thus grow their portfolio. Larger portfolios demand a brand strategy, and segmentation according to region, country or city as well as business sector is growing. This focus on developing different brands in different markets underlines the importance of brands in corporate business.
The recent division of Accor’s business into two companies in order to make Accor itself a dedicated hotel company gives it the opportunity to expand its portfolio in fast-growing markets. But like many of the world’s largest hotel companies – Hilton, Marriott, Starwood, InterContinental – Accor is comprised of a number of brands.

And these brands are expanding all the time. For example, it is expanding its Pullman brand, five-star hotels aimed at both business and conference traffic in Malaysia and Vietnam where the brand has already enjoyed success. The brand is in Europe, almost exclusively in France and Germany, and in Asia but non-existent in North America.

After its IPO Rezidor had to ensure that its brands retained no ties to previous owners so Radisson SAS has become Radisson blu, and it has launched Missoni to be its funky, designer brand.

Andrew Coslett, CEO of InterContinental, recently gave an interview to Fortune in which he talks about how each of InterConti’s seven brands must be tailored to different markets and that whereas in the past hotel brands were based on price bands, that brands were no longer being identified purely by room rate.

Why it matters

• Policy Different price bands no longer will connect eligible employees with eligible brands. Creating a hotel program that gives the range of hotels needed for different employees need no longer be defined only by rate band.

• Identifying the “right” brand for your employees The brand has to be both appropriate for the company but with increased variety comes more opportunity for delivering greater traveler satisfaction, lower costs and the ability to target spend.

• Corporate negotiations The negotiations may be with the group or with the brand but it is vital to try to incorporate as much flexibility in the program as your travel profile requires and with such fluidity that could be more challenging.

What to look out for in the future

• More outside influence on decision-making Hoteliers’ increased desire to differentiate their products will mean more targeted marketing and more direct influence on travelers.

• Consistency of brands As the emphasis becomes more on individual properties reflecting their location or culture, consistency wanes which could affect expectations. In addition as the emphasis on acquiring management contracts increases, there will be more properties which have only just recently come into a brand portfolio and may not be of the standard expected.