Brand vs. Bottom Line

It’s something we all deal with. Protecting the sanctity of a brand amidst the storm of our current economic conditions. The hospitality sector is awash with deep discounts, reductions to marketing budgets, staff layoffs and, in most cases, a board of directors that just wants to stop the bleeding. Four Seasons’ Founder Isadore Sharp certainly doesn’t stand alone when he chooses brand integrity over balance sheets, but the 77 year old is an unlikely torchbearer for brand always being first.

I personally agree with him. At least to a point. Luxury brands can’t discount, but they can add value. While a room might stay at $395/night, there is no reason why a hotel can’t throw in a round of golf, spa treatment or even tickets to a local museum, or free airport limo pickup. It’s time to get creative with added value.The problem with the Four Seasons is that they only manage the hotels. The individual hotel owners often have an entire other Board of Directors to answer to.

This is a great article from the New York Times that anyone in the hotel industry should read.

Link: http://www.nytimes.com/2009/06/28/business/global/28four.html