Luxury Brand Exclusivity
There are hotels now offering unique goods and services to their clients today more than any other period in history. Premium hotels are now emerging globally for travelers who are searching for luxury and exclusivity at the same time. The last decade, for example, has witnessed the rise in luxury hotels in some of the world’s top destinations such as New York, Paris, and London, with little-known destinations such as South East Asia also becoming hubs for luxury hotels. China, the world’s leading economic hub has its fair share of exclusive hotel brands, as is the case with Morocco too. This paper will thus look at how luxury brands affect hotel operations, as well as the operational effectiveness in the hotel industry.
With the emerging luxury brands in the hotel industry globally, hotel operations have greatly improved on quality and services offered to their clients. Most of these clients are the elite in society, who demand nothing short of the best in terms of the goods and services they purchase while enjoying their stay. According to (Siguaw, Enz 1999), if a hotel fulfills all that it promises to its guests and at times go beyond the expectations, it becomes a determining factor on whether the client becomes a return client. Siguaw and Enz (1999) contended that luxury hotels maintained a higher than average quality standard in all that they offered, with staff training being regularly undertaken to ensure the expected standards are always met. Housekeeping duties are undertaken on a regular basis to ensure that all rooms are clean at all times, a task that falls under the specific mandate of the housekeeping manager (Siguaw & Enz 1999). The process to check-in is also faster for luxury hotels by facilitating engagement prior to their physical arrival, something that ensures the guests go straight to their rooms without having to stop at the front office (Siguaw & Enz 1999). With proper management in the hospitality industry, non-profitable hotels can be turned into profitable destinations.
Luxury brands improve management and operational effectiveness in the hotel industry through the introduction and adoption of Total Quality Management (TQM). Siguaw and Enz (1999) illustrated that in India’s hospitality industry, the government is interested in how hotels offer their services and pressures them to maintain them at their highest possible levels. Industry players are also often advised to adopt the total quality management system process, which turns out to be profitable for business and thus ensure India’s hotels stay competitive (Siguaw & Enz 1999). Total quality management gives guidelines on how business should be done to attain the highest quality possible. Among the issues of concern is the fact that it is the hotel’s responsibility to ensure the surrounding environment is clean, which is attained by a well developed and executed waste disposal strategy. Processing of waste should, therefore, be the responsibility of the hotel (Siguaw & Enz 1999).
Value of Co-Creation
Clients who value luxury brands make them more valuable through what they purchase in the hotels unknowingly. Pongsakornrungsilp and Echroeder (2012) suggested that value addition is important in marketing. Clients and service providers in this instance have a role to play in adding value to whatever it is they are offering. In this regard, customers are believed to add more value to the services and goods they purchase. Value addition is not static; it is dynamic, and it can be looked at from different dimensions (Pongsakornrungsilp & Echroeder 2012). For instance, the process involved in creating value relies on the way clients perceive what is being offered on the market currently, the way a product is presented to them by the service provider, and the most of all the quality of the product. Pongsakornrungsilp and Echroeder (2012) confirmed that the general notion that the customer is positioned at the far end of the chain connecting the producer and the client is no longer valid. The customer is at the center of the most important position which is at the center of marketing. The study further pointed out that with the effort being put by producers to manipulate clients into buying their products and services, it is evident that client reactions to certain products cannot be predicted. Now producers are more attentive to how they can include their targeted clients in the co-creation of additional value.
Better hospitality management practices have shown that hotel businesses can now be turned into luxury brands and demand high value for what they will be offering to their target market. Total quality management, in this case, ensures that clients get value for their money, which reflectively means the hotel can only make good returns if they put in additional efforts towards satisfying their guests. This includes every effort and detail that goes into cleaning the guest suites and the time taken to make minor adjustments on a daily basis as a measure to return it to its best setup. The client should be at the center of a marketer’s mind if he/she wants to make sales to a targeted group of consumers, and he/she should never be underrated in his/her power to co-create value.
Pongsakornrungilp, S. & Schroeder, J. E. (2012) Marketing Theory: Understanding Value Co-Creation in a Co-Consuming Brand Community 11 (3) 303-324 doi: 10.1177/1470593111408178
Siguaw, J. A. & Enz, C. (1999) Best Practices in Hotel Operations: Hotel and Restaurant Administration Quarterly 40 (6) doi: 10.1016/S0010-8804(00)87464-9