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Thursday, 13 August 2009

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A different approach
Posted by James Chappell at 12:00 AM

I just got back from traveling throughout California for two weeks. It struck me how different the hotel markets are in the States compared to Europe once you get out of the big cities.

Large cities—anything more than a population of one or two million—are, in my experience, pretty saturated with international brands. The usual suspects pop up exactly where you’d expect to find them. Only Rome and Tokyo seem to have resisted the onslaught better than the other destinations, but they’re the exception.

It’s once you get outside theses cities you find the difference starting to appear. Brands are far less prevalent in Europe, where hotels tend to be located near a large amenity, preferably an airport or a train station. Once you get down past a certain size population, you’ll be hard pushed to find more than one or two small, usually independently run, hotels without any kind of affiliation.

In the U.K., some would be Best Western. In Germany, maybe InterCity, Ring hotels or a smaller localized marketing group; but the vast majority are independent and unbranded.

That’s not so in the U.S. I knew all about the numbers of course, but still, it’s amazing to see at almost every street intersection, you’ll see a Holiday Inn, Motel 6, Red Roof, Travelodge, Econolodge, Embassy Suites and many others.

In addition the sheer number and regularity of these hotels, the configuration also is interesting. In Europe, you’ll rarely see hotels next door to one another. It’s almost like the more reserved Europeans want to give each other space so they don’t look as if they’re doing anything as vulgar as competing with each other. The American approach is so much more gung ho—rows of hotels right next to each other, unapologetically vying for attention like products on a supermarket shelf.

They both have their merits, but I prefer the American way. At least you know you’ll be able to find somewhere to stay wherever you go, which isn’t something Europe can be accused of.



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4 Comments
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17 August 2009 at 2:00 PM Central Time
In response to: A different approach
Jonathan Newbury commented:
You raise an interesting point. Personally, I believe it comes down to the fact that the US is a much larger country. The citizens expect things to be pretty much the same wherever they go which means branding really works here. In Europe I believe the opposite is true - many differences in culture and language over a smaller area. t he brands just do not ring true with people here - and I agree with Neale - there is a certain joy in finding that "hidden gem" of a hotel with it's own character and personality. jnewbury@preferredhotelgroup.com

14 August 2009 at 1:51 AM Central Time
In response to: A different approach
Ewan Campbell commented:
I believe part of the issue of lack of brands outside major cities is much to do with the risk factor in developing a new build property in 'uncharted waters'. As a hotel developer it was always difficult to get good market intelligence at a sensible cost when researching secondary markets. I wonder if the availability of stats in the US is more prevalent or do the citizens of the US just embrace the franchise and brand spirit more? Whilst seeking to develop branded hotels in Spain, I found that the 'locals' could not understand why one would wish to part with between 5 and 8 percent of their revenue to a franchisor when there were no revenue guarantees and for the most part the brand marketing machines were focussed for the most part on business traffic to major cities rather than leisure and niche local markets required to fill a room in the sticks. I would believe that the 'rooms business' would be a lesser component of the overall business in Europe where hotels have a good F&B or banqueting business, which let's face it, the brands do little to enhance. I believe the non branded face of Europe's hotels will remain as long as the brand owners focus solely on cookie cutter rooms business.

13 August 2009 at 1:34 PM Central Time
In response to: A different approach
Neale French commented:
Having worked and stayed in chain hotels and independents or non-branded hotels on both sides of the 'pond', frankly I'm in favour of Europe's individuality in its hotels. If you were to stay in some branded hotels that I could mention, in Europe's cities, well, you could be anywhere - London, Paris, Rome, Lisbon. The rooms are all exactly the same - even down to the waste paper basket in the washroom! It's like eating in a MacDonalds restaurant - no local flavour to enjoy that identifies exactly where you are. Of course we all understand the economic advantages of sourcing 'fixtures and fittings' for chain hotels, and I accept that the business traveller is on the whole looking for efficiency, reliability and a ‘familiar face’. But for the independent traveller on vacation, well, who would want to stay in a sterile 'one-size-fits-all' chain hotel? Viva a diferenca na Europa!

13 August 2009 at 12:59 PM Central Time
In response to: A different approach
Henri Birmele commented:
I agree with your observation with the various Brands and plenty off them. I personally do prefer the European way with the independent Brands if you leave the "the large amenities". I like the adventure that our Industry is offering. The traveler attached with loyalty programs or larger employers which have set up Corporate Rates with any of the big Brands will for that reason chose such. Thank you for sharing your experience in California as I believe that is a very interesting topic. Henri Birmele hfbirmele@live.com



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