Hotel brand portfolio strategy

Abstract

Purpose

This study aims to develop dimensions and sub-items that explain hotel brand portfolio strategy (HBPS) and explore performance differences among HBPS groups in an effort to improve our knowledge about HBPS. A key ingredient in success for a hotel company is the successful building and management of a strong brand portfolio.

Design/methodology/approach

This study proposes four dimensions of HBPS: brand portfolio scope, intra-portfolio competition, brand portfolio location and brand portfolio element. By employing ten additional sub-items, the study evaluates the HBPS practices of hotel firms and tests performance differences.

Findings

The findings present current HBPS practices in the hotel industry and identify four groups pursuing similar HBPS. The results also suggest that operational performance differs according to a firm’s particular focus in HBPS.

Research limitations/implications

This study enriches our knowledge of HBPS by establishing dimensions and relevant measures and by suggesting the effect that HBPS has on performance. Future research might extend this study to examine the potential impacts of a business’s internal and external environments on the relationship between HBPS and its performance.

Practical implications

This study will aid executives in making important HBPS decisions such as whether to add a brand or how to reallocate resources among brands. This study also provides executives with a tool with which to monitor the relative position of their HBPS within the market.

Originality/value

This study is the first to establish dimensions and sub-items for understanding HBPS in the hotel industry. It also demonstrates a new approach to the analysis of competitive positioning and its relationship to performance.

Citation

Wang, Y.-C. and Chung, Y. (2015), "Hotel brand portfolio strategy", International Journal of Contemporary Hospitality Management, Vol. 27 No. 4, pp. 561-584. https://doi.org/10.1108/IJCHM-01-2014-0031