Branding as a Differentiator for Reducing Competitive Threats and Elevating Profitability in the Hotel Industry
Gamaleeva, Veronika (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025051612312
https://urn.fi/URN:NBN:fi:amk-2025051612312
Tiivistelmä
This study aims to answer the question: How can branding be used as a differentiator for lowering the threat of competition and elevating overall profitability level in the hotel industry? The motivation behind this research lies in exploring the key reasons for the industry's generally low profitability and addressing this issue by examining emerging consumption shifts—specifically, the growing demand for intangible, sensation-driven experiences, and the increasing importance of branded concepts as a means for consumers to express or reinforce their personal identity.
The research consists of a literature review that examines the nature of the hotel industry to identify its key profitability-limiting factors and to explain how branding can help address these challenges. The empirical part of the study involves an analysis based on a semi-structured interview, aimed at exploring the nature and practical implementation of hotel branding.
The findings of this research highlight the primary focus of hotel branding as increasing the conceptual and sensory tangibility of hotel services. This is achieved through the strategic application of brand personality, brand communication, brand visual identity, and the overall hotel identity concept. A highly curated and conscious implementation of these elements has been shown to positively influence the reduction of guest price sensitivity, the capture of greater customer value, and the differentiation of hotels within a competitive landscape—all of which contribute to improved profitability.
The results of this study may offer valuable insights for emerging hotel brands into the evolving consumption environment of the hotel industry, including the growing appeal of experiential liminality among local communities. These findings can serve as inspiration for new hotels in designing their own distinctive "hotel destinations.
The research consists of a literature review that examines the nature of the hotel industry to identify its key profitability-limiting factors and to explain how branding can help address these challenges. The empirical part of the study involves an analysis based on a semi-structured interview, aimed at exploring the nature and practical implementation of hotel branding.
The findings of this research highlight the primary focus of hotel branding as increasing the conceptual and sensory tangibility of hotel services. This is achieved through the strategic application of brand personality, brand communication, brand visual identity, and the overall hotel identity concept. A highly curated and conscious implementation of these elements has been shown to positively influence the reduction of guest price sensitivity, the capture of greater customer value, and the differentiation of hotels within a competitive landscape—all of which contribute to improved profitability.
The results of this study may offer valuable insights for emerging hotel brands into the evolving consumption environment of the hotel industry, including the growing appeal of experiential liminality among local communities. These findings can serve as inspiration for new hotels in designing their own distinctive "hotel destinations.