By DAVID CHURCHILL
shows no sign of abating. Everything from mega-takeovers such as Marriott’s grab for Starwood, to the emergence of alterna- tive accommodation providers typified by Airbnb, is challenging the hospitality industry in 2017 as never before. And that is before advances in mobile and other technologies offer hoteliers unprecedented
What is already certain for 2017 is that
there will be no let-up in the brand prolif- eration which has characterised the global hotels market in recent years. According to US hotel data provider STR, there were nearly 1,000 separate hotel brands world- wide at the start of last year – with 30 of those alone now accounted for by Marriott
“As hotels offer more choice and services, it makes the market more competitive for the buyer”
scope to shape and develop the way they innovate their product and market the end result. Never has it been more vital for corporate buyers to become aware of how the hospitality world is shaping up to changing circumstances.
following its Starwood merger. Marriott has decided to keep all 30 brands, but in an effort to help travellers understand them better has reclassified them into two main categories – either ‘Classic’ or ‘Distinctive’ – and then into three further groups: Luxury,
Premium and Select. Thus while the main Marriott and Sheraton chains are classed as Classic Premium brands, Moxy and Aloft brands are Distinctive Select. Targeting ever more niche markets is the
name of the game for hospitality provid- ers. Serviced apartment group Ascott, for example, is launching a new brand this year called Lyf – meaning ‘Live your freedom’ – aimed at Millennials who, as a cohort, already account for a quarter of Ascott’s customer base. And Ennismore, which owns the
Hoxton hotel brand that started in trendy Shoreditch a decade ago and has spread to central London and Amsterdam (with Paris and New York to follow this year), is now launching a budget version of the Hoxton called No Co – embracing stylish design and technology but at a sub-£100 a night room rate. But the big hotel chains are still the main
drivers of the branding game. While Mar- riott will probably use 2017 to bed down the Starwood acquisition – as well as accelerat- ing the roll-out of physical properties under the Moxy and other labels – Choice Hotels International, for example, is keen to add to its brand portfolio this year. It has targeted a move into the ‘upper
upscale segment’ and is looking for brands to either acquire or develop. Choice CEO Stephen Joyce recently told investors that a “full-service upper upscale brand adapted for today’s environment would really complete our portfolio”. Understandably, he is keeping potential targets or concepts under wraps for the moment, but Europe is understood to be a particular focus.
MORE COMPETITION For managed travel, does the surge in new brands help or hinder travel buyers? “Corporates we speak to see these changes as beneficial,” says Corporate Travel Man- agement (CTM) director Stuart Birkin. “As hotels offer more choice and services, it makes the market more competitive for the buyer as hotels compete against each other in key business cities.” Yet the impact of these new brands
is also shaping the way hotels will look and operate in 2017 and beyond. Room design and facilities, influenced by Millen- nial travellers, will emphasise that they are
BUYINGBUSINESSTRAVEL.COM BBT January/February 2017 37
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