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Sub-brands effective versus disruptors: Landor

Global brand strategist and design firm Landor has released research findings that suggest innovative hotel sub-brands have been particularly effective in the battle against industry disruption.

The complete list of the top 10 most innovative hotel brands, according to Landor Pulse, includes Aloft (Starwood), Andaz (Hyatt), Autograph (Marriott), Edition (Marriott), Element by Westin (Starwood), Kimpton (IHG), Moxy (Marriott), SpringHill Suites (Marriott), The Standard Hotels, and W Hotels (Starwood). The only independent brand named to the list is The Standard Hotels.

The Landor Pulse of most innovative hotel brands is based on results from the United States 2016 BrandAsset Valuator (BAV), the world’s largest database of consumer brand perception, comparing statistics for more than 76 hotel brands.

“Like other sectors, disruption has become the norm. To combat the Airbnb effect and the popularity of boutique hotels, major hotels are investing in sub-brands that dial up local flavor and cutting-edge design, offering truly differentiated experiences that you just can’t find in the parent brands,” said Michael Khoury, strategy director at Landor. “We are seeing a range of strategies from voice-activated rooms (Aloft) to partnerships with relevant brands like Yoga for Bad People (Edition) and West Elm (SpringHill Suites).”

“Comparing BAV hotel category data over the last 10 years shows that perceptions of innovation have never been more important in driving brand strength,” said Maarten Lagae, Landor’s senior research manager of insights and analytics. “And while there are no high-end brands such as Ritz-Carlton, Four Seasons, or Peninsula on the list, innovation does happen across all market segments and across a wide range of traveler types.”

Millennials are becoming the largest group of leisure and business travelers, and they are looking for more than just affordability. “As shared food and travel experiences have become Instagram status symbols, millennials are flocking to lifestyle-oriented hotel brands that align with their passions and weave a community feeling into the experience,” Lagae added.

Examples include Moxy, a spin-off brand by Marriott, which attracts millennials through a social experience that comes with a bar that never sleeps. Meanwhile, Aloft (Starwood) has created a digitally enabled environment, with room service available via mood-specific emoji texts that is delivered by a robotic butler. Element by Westin boasts a nature-inspired design and places strong emphasis on sustainability and healthy living. IHG’s Kimpton brand has even reimagined the loyalty game. Its algorithm-based program measures and rewards overall consumer engagement with the brand based not only on room stays, but also social media interactions and attendance at wine hours or exercise classes. Many of these sub-brand innovations will eventually get rolled out chainwide.

“This sort of agility is exactly what’s needed in such a dynamic, fast-moving market,” Khoury said. “Given the scale and expenditures involved, it appears the major players have decided that it’s easier—and quicker—to concentrate their experience innovations in newer sub-brands, and consumers have taken notice. The question now is if and how the parent brands will be able to keep up.”

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