If Hermes opened a hotel, I think we would be able to guess accurately what it would be like. If Marriott, Hilton, Hyatt, or Intercontinental Hotel Group came out with a bag we’d have no clue because they simply don’t have a brand, they are simply a good piece of real estate with a logo. If I swapped the signage on a hotel at that price point you couldn’t tell if you were in a Marriott, if you were in a Hilton, or Hyatt, the lobby, the hallway, the room, I don’t know where I am. No brand.
What it means to have a brand is you’ve made a promise to people. They have expectations. If that is distinct you’ve earned something. If it’s not distinct, let’s admit, you make a commodity and you’re trying to charge just a little bit extra for peace of mind. The problem that these hotels have is sort by price. If I go online now to find a hotel it’s simple, sort by price. Why would I pay $200 extra to go a block or two away? I don’t.
The value of a brand is how much extra am I paying above the substitute. If I’m not paying extra, you don’t have a brand. When we think about what brands ought to do to move forward, the most important thing is to not worry about your slogan or your logo., it’s to worry about the substance, product and service that matters for people who care. Find the people who care, the smallest viable group you can live with, and figure out how to give them a product and service that matters.
My boutique hotel might charge double what other hotels might charge, for less. But it’s only less by their measure. It’s way more by the measure of someone who cares about the product, service, and value and how hip it feels to walk into our bar. They’re not investing in a room with like three power outlets or an unhealthy breakfast, they’re investing in throwing a party in a place where you also can sleep while you’re on the road, a place to be seen at, a place that employ people that will make you feel special.
My hotels and others few like it have a brand and this is the reason some people pay extra for.