Why an International Brand ?
International brands are considered to guarantee a high level of standards and service, and when planning their arrival and selecting a hotel, tourists therefore look for well-known brands first, because an unknown hotel with no brand does not tell them much and provides no guarantee of quality at all.
When an independent hotel joins the brand and reaches the standards it sets, this presents it with a great opportunity to increase the average cost of its rooms and its overall revenue accordingly.
Commission rates for the use of online travel agency services are lower for brand hotels than for independent ones. In sum, operating under a brand obviously promises higher revenue and lower commission rates.
- After joining a brand, independent hotels are able to use international sales channels and global distribution systems, which begs the question: why is it mandatory to use these systems if it is permitted to freely use the resources of OTA. The answer is that OTA customers are mainly individual tourists, private persons, whereas the corporate clients every hotel dreams of, use only GDS services and if hotels do not make use of this resource then they lose many potential guests such as corporate clients, who in this case will use a hotel network. While network hotels first of all have an excellent reputation, the network they belong to also guarantees a high quality of service.
Greater levels of interest and trust when dealing with banks—not only when applying for loans for project maintenance but also when using the operating hotel as a credit resource. An international brand is actually a guarantee that the business is managed properly, and therefore a guarantee of sales growth. As a result, banks consider the financing of brand hotels to be less risky.
Finally, international brands increase competition in the hotel sector, encouraging the establishment of high standards of service quality which would be quite impossible to achieve without a brand.