In the hotel industry, there may be nothing more important than brand equity. You simply cannot buy the emotional feelings attached to a hotel with great brand equity. That’s why Orient-Express Hotels Limited’s name change could be a risky move.
With a collection of 45 hotel, rail, and river cruise experiences, Orient-Express Hotels Limited has established itself as a major player in the hotel industry. Though they have experienced great success, they have never been able to fully embrace the name, which was licensed from a French transportation company. When CEO John Scott came on board at the end of 2012, he decided to focus on the name. The result is a new one: Belmond.
Scott was worried about the low level of cross-visitation within the company (only 3% of total demand) and wanted to increase the likelihood of customers visiting multiple properties in different locations. Now Scott may have to worry about whether his gamble to introduce a new name will deplete the brand equity the company has built over the years.
While the decision may be questioned by the general public, executives within the company conducted months of research, oversaw dozens of focus groups, and collected intense evaluations before landing on Belmond. Additionally, they plan on setting aside $15 million in marketing and promotions over the next couple of years in an attempt to develop brand equity with the new name. Only time will tell whether this gamble pays off.
If you are interested in learning more about Orient-Express’s name change, be sure to read the full article. At JDI Search, we recruit exclusively in the hotel and resort industry. That means our recruiters know how to help you find, acquire, and retain top-level talent.