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Why do hotel chains use so many different names for the same class?
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Some of the names stem from mergers and acquisitions that explain why Marriott has Ritz-Carlton, Sheraton, Delta, Westin. Keeping these names
is easier and less costly than replacing them.
My question doesn't involve these names then. For example, Marriott founded Courtyard in 1982. Why then did it commence Fairfield Inn in 1987?
Similarly, Hilton founded Hilton Garden Inn in 1996, and acquired Hampton in 1999. Why then did it commence Tru by Hilton in 2016?
The screenshot beneath is from Hilton and Marriott.
hotels
asked 1 hour ago
Greek - Area 51 Proposal
3,43061941
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up vote
1
down vote
favorite
Some of the names stem from mergers and acquisitions that explain why Marriott has Ritz-Carlton, Sheraton, Delta, Westin. Keeping these names
is easier and less costly than replacing them.
My question doesn't involve these names then. For example, Marriott founded Courtyard in 1982. Why then did it commence Fairfield Inn in 1987?
Similarly, Hilton founded Hilton Garden Inn in 1996, and acquired Hampton in 1999. Why then did it commence Tru by Hilton in 2016?
The screenshot beneath is from Hilton and Marriott.
hotels
asked 1 hour ago
Greek - Area 51 Proposal
3,43061941
In all these cases the Wikipedia pages appear to explain clearly the reasons behind each of these hotel chains and how they differ. Do you have a specific question not answered there?
– Michael Hampton
34 mins ago
The pages you are linking to, all explain that the 'product labels' are placed on quite distinct service packages. Why do you describe these as 'same class'?
– Tor-Einar Jarnbjo
30 mins ago
add a comment |Â
up vote
1
down vote
favorite
up vote
1
down vote
favorite
Some of the names stem from mergers and acquisitions that explain why Marriott has Ritz-Carlton, Sheraton, Delta, Westin. Keeping these names
is easier and less costly than replacing them.
My question doesn't involve these names then. For example, Marriott founded Courtyard in 1982. Why then did it commence Fairfield Inn in 1987?
Similarly, Hilton founded Hilton Garden Inn in 1996, and acquired Hampton in 1999. Why then did it commence Tru by Hilton in 2016?
The screenshot beneath is from Hilton and Marriott.
hotels
asked 1 hour ago
Greek - Area 51 Proposal
3,43061941
Some of the names stem from mergers and acquisitions that explain why Marriott has Ritz-Carlton, Sheraton, Delta, Westin. Keeping these names
is easier and less costly than replacing them.
My question doesn't involve these names then. For example, Marriott founded Courtyard in 1982. Why then did it commence Fairfield Inn in 1987?
Similarly, Hilton founded Hilton Garden Inn in 1996, and acquired Hampton in 1999. Why then did it commence Tru by Hilton in 2016?
The screenshot beneath is from Hilton and Marriott.
hotels
hotels
asked 1 hour ago
Greek - Area 51 Proposal
3,43061941
asked 1 hour ago
Greek - Area 51 Proposal
3,43061941
asked 1 hour ago
Greek - Area 51 Proposal
3,43061941
asked 1 hour ago
Greek - Area 51 Proposal
3,43061941
asked 1 hour ago
Greek - Area 51 Proposal
3,43061941
3,43061941
In all these cases the Wikipedia pages appear to explain clearly the reasons behind each of these hotel chains and how they differ. Do you have a specific question not answered there?
– Michael Hampton
34 mins ago
The pages you are linking to, all explain that the 'product labels' are placed on quite distinct service packages. Why do you describe these as 'same class'?
– Tor-Einar Jarnbjo
30 mins ago
add a comment |Â
In all these cases the Wikipedia pages appear to explain clearly the reasons behind each of these hotel chains and how they differ. Do you have a specific question not answered there?
– Michael Hampton
34 mins ago
The pages you are linking to, all explain that the 'product labels' are placed on quite distinct service packages. Why do you describe these as 'same class'?
– Tor-Einar Jarnbjo
30 mins ago
In all these cases the Wikipedia pages appear to explain clearly the reasons behind each of these hotel chains and how they differ. Do you have a specific question not answered there?
– Michael Hampton
34 mins ago
In all these cases the Wikipedia pages appear to explain clearly the reasons behind each of these hotel chains and how they differ. Do you have a specific question not answered there?
– Michael Hampton
34 mins ago
The pages you are linking to, all explain that the 'product labels' are placed on quite distinct service packages. Why do you describe these as 'same class'?
– Tor-Einar Jarnbjo
30 mins ago
The pages you are linking to, all explain that the 'product labels' are placed on quite distinct service packages. Why do you describe these as 'same class'?
– Tor-Einar Jarnbjo
30 mins ago
add a comment |Â
2 Answers
2
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oldest
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up vote
3
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The hotel brands have differences in amenities within the class. To use your Hilton example, from lower to higher service, it goes Tru (smaller, more basic rooms), Hampton Inn (middle of the range, no food operation allowed outside free breakfast), then Hilton Garden Inn (requires full-service restaurant, no free breakfast). There's also some minor requirements about things like plastic cups, fridges, and microwaves.
To the owner, requirements like a restaurant and room sizes can have a significant impact on profitability, given the location. Mass-market hotels are built on the principle of predictability, and it's critical to convey the level of service up front.
Second, the majority of hotels are franchises, so to the franchisee, their hotel does compete against a hotel from the same brand. As in all franchises, a hotel is granted exclusivity over their brand for a certain area. By making different brands with different amenities, the chain can offer more hotels, and rooms, in the same market, while limiting to a certain extent the competition between franchisees.
answered 29 mins ago
user71659
1,0071615
add a comment |Â
up vote
0
down vote
The Hotel market is, like many other markets, splintered into many different brand names, and consumer don't follow consolidations well.
In other words, a single brand name is not able to capture more than 3 or 5% of the market, no matter how great they are.
Therefore, offering multiple brand names allows the chain behind it to grasp a larger share of the overall market. Consolidating all Hilton brands in for example two brands would reduce their market share over the next years significantly; obviously not something Hilton is interested in.
Other well-known examples are detergents (basically the complete detergent market consist of two companies, but they need to offer several dozens of 'brands' to defend their market share); sweets; and so on.
In addition, each brand tries to cater to a slightly different market segment, as customers have different priorities.
answered 13 mins ago
Aganju
17.5k53868
add a comment |Â
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
3
down vote
The hotel brands have differences in amenities within the class. To use your Hilton example, from lower to higher service, it goes Tru (smaller, more basic rooms), Hampton Inn (middle of the range, no food operation allowed outside free breakfast), then Hilton Garden Inn (requires full-service restaurant, no free breakfast). There's also some minor requirements about things like plastic cups, fridges, and microwaves.
To the owner, requirements like a restaurant and room sizes can have a significant impact on profitability, given the location. Mass-market hotels are built on the principle of predictability, and it's critical to convey the level of service up front.
Second, the majority of hotels are franchises, so to the franchisee, their hotel does compete against a hotel from the same brand. As in all franchises, a hotel is granted exclusivity over their brand for a certain area. By making different brands with different amenities, the chain can offer more hotels, and rooms, in the same market, while limiting to a certain extent the competition between franchisees.
answered 29 mins ago
user71659
1,0071615
add a comment |Â
up vote
3
down vote
The hotel brands have differences in amenities within the class. To use your Hilton example, from lower to higher service, it goes Tru (smaller, more basic rooms), Hampton Inn (middle of the range, no food operation allowed outside free breakfast), then Hilton Garden Inn (requires full-service restaurant, no free breakfast). There's also some minor requirements about things like plastic cups, fridges, and microwaves.
To the owner, requirements like a restaurant and room sizes can have a significant impact on profitability, given the location. Mass-market hotels are built on the principle of predictability, and it's critical to convey the level of service up front.
Second, the majority of hotels are franchises, so to the franchisee, their hotel does compete against a hotel from the same brand. As in all franchises, a hotel is granted exclusivity over their brand for a certain area. By making different brands with different amenities, the chain can offer more hotels, and rooms, in the same market, while limiting to a certain extent the competition between franchisees.
answered 29 mins ago
user71659
1,0071615
add a comment |Â
up vote
3
down vote
up vote
3
down vote
The hotel brands have differences in amenities within the class. To use your Hilton example, from lower to higher service, it goes Tru (smaller, more basic rooms), Hampton Inn (middle of the range, no food operation allowed outside free breakfast), then Hilton Garden Inn (requires full-service restaurant, no free breakfast). There's also some minor requirements about things like plastic cups, fridges, and microwaves.
To the owner, requirements like a restaurant and room sizes can have a significant impact on profitability, given the location. Mass-market hotels are built on the principle of predictability, and it's critical to convey the level of service up front.
Second, the majority of hotels are franchises, so to the franchisee, their hotel does compete against a hotel from the same brand. As in all franchises, a hotel is granted exclusivity over their brand for a certain area. By making different brands with different amenities, the chain can offer more hotels, and rooms, in the same market, while limiting to a certain extent the competition between franchisees.
answered 29 mins ago
user71659
1,0071615
The hotel brands have differences in amenities within the class. To use your Hilton example, from lower to higher service, it goes Tru (smaller, more basic rooms), Hampton Inn (middle of the range, no food operation allowed outside free breakfast), then Hilton Garden Inn (requires full-service restaurant, no free breakfast). There's also some minor requirements about things like plastic cups, fridges, and microwaves.
To the owner, requirements like a restaurant and room sizes can have a significant impact on profitability, given the location. Mass-market hotels are built on the principle of predictability, and it's critical to convey the level of service up front.
Second, the majority of hotels are franchises, so to the franchisee, their hotel does compete against a hotel from the same brand. As in all franchises, a hotel is granted exclusivity over their brand for a certain area. By making different brands with different amenities, the chain can offer more hotels, and rooms, in the same market, while limiting to a certain extent the competition between franchisees.
answered 29 mins ago
user71659
1,0071615
answered 29 mins ago
user71659
1,0071615
answered 29 mins ago
user71659
1,0071615
answered 29 mins ago
user71659
1,0071615
1,0071615
add a comment |Â
add a comment |Â
up vote
0
down vote
The Hotel market is, like many other markets, splintered into many different brand names, and consumer don't follow consolidations well.
In other words, a single brand name is not able to capture more than 3 or 5% of the market, no matter how great they are.
Therefore, offering multiple brand names allows the chain behind it to grasp a larger share of the overall market. Consolidating all Hilton brands in for example two brands would reduce their market share over the next years significantly; obviously not something Hilton is interested in.
Other well-known examples are detergents (basically the complete detergent market consist of two companies, but they need to offer several dozens of 'brands' to defend their market share); sweets; and so on.
In addition, each brand tries to cater to a slightly different market segment, as customers have different priorities.
answered 13 mins ago
Aganju
17.5k53868
add a comment |Â
up vote
0
down vote
The Hotel market is, like many other markets, splintered into many different brand names, and consumer don't follow consolidations well.
In other words, a single brand name is not able to capture more than 3 or 5% of the market, no matter how great they are.
Therefore, offering multiple brand names allows the chain behind it to grasp a larger share of the overall market. Consolidating all Hilton brands in for example two brands would reduce their market share over the next years significantly; obviously not something Hilton is interested in.
Other well-known examples are detergents (basically the complete detergent market consist of two companies, but they need to offer several dozens of 'brands' to defend their market share); sweets; and so on.
In addition, each brand tries to cater to a slightly different market segment, as customers have different priorities.
answered 13 mins ago
Aganju
17.5k53868
add a comment |Â
up vote
0
down vote
up vote
0
down vote
The Hotel market is, like many other markets, splintered into many different brand names, and consumer don't follow consolidations well.
In other words, a single brand name is not able to capture more than 3 or 5% of the market, no matter how great they are.
Therefore, offering multiple brand names allows the chain behind it to grasp a larger share of the overall market. Consolidating all Hilton brands in for example two brands would reduce their market share over the next years significantly; obviously not something Hilton is interested in.
Other well-known examples are detergents (basically the complete detergent market consist of two companies, but they need to offer several dozens of 'brands' to defend their market share); sweets; and so on.
In addition, each brand tries to cater to a slightly different market segment, as customers have different priorities.
answered 13 mins ago
Aganju
17.5k53868
The Hotel market is, like many other markets, splintered into many different brand names, and consumer don't follow consolidations well.
In other words, a single brand name is not able to capture more than 3 or 5% of the market, no matter how great they are.
Therefore, offering multiple brand names allows the chain behind it to grasp a larger share of the overall market. Consolidating all Hilton brands in for example two brands would reduce their market share over the next years significantly; obviously not something Hilton is interested in.
Other well-known examples are detergents (basically the complete detergent market consist of two companies, but they need to offer several dozens of 'brands' to defend their market share); sweets; and so on.
In addition, each brand tries to cater to a slightly different market segment, as customers have different priorities.
answered 13 mins ago
Aganju
17.5k53868
answered 13 mins ago
Aganju
17.5k53868
answered 13 mins ago
Aganju
17.5k53868
answered 13 mins ago
Aganju
17.5k53868
17.5k53868
add a comment |Â
add a comment |Â
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In all these cases the Wikipedia pages appear to explain clearly the reasons behind each of these hotel chains and how they differ. Do you have a specific question not answered there?
– Michael Hampton
34 mins ago
The pages you are linking to, all explain that the 'product labels' are placed on quite distinct service packages. Why do you describe these as 'same class'?
– Tor-Einar Jarnbjo
30 mins ago