LILYPAD HOTELS and Resorts could certainly create some connections among its brands; the business rationale for doing so is evident. However, Andre needs to proceed with caution: It’s critical that any linkages don’t compromise the value of the individual offerings. A plan to emphasize the corporate brand over the property brands might very well backfire. The implicit promise from each property is that no other hotel in the area will offer guests the same sort of culturally grounded travel experience. But how credible can that one of-a-kind claim be if La Plaza’s “handwoven” bathrobes are made in China and stamped with the Lilypad’s logo? Once you start making branding choices that don’t ring true or that otherwise detract from the customer experience, you’ve gone too far. Lilypad’s brands are quite distinct in customers’ minds – that’s their greatest strength.
So instead of making significant and observable changes in the rooms themselves, Lilypad’s management team should emphasize changes behind the scenes to help boost the company’s cross-sell numbers. The soft endorsements Lilypad’s is already doing (putting its name on coat hangers, for instance) may still influence customers’ behavior over time.
But the company should also make better use of other resources specifically, the internet and various players in the travel industry. By linking the individual properties’ websites to the corporate one, for instance, Lilypad’s would be able to give customers more information about the hotels. It might even engender a community of “brand fans.” And by forging stronger relationships with travel agents and the trade press, Lilypad’s would be able to tell the corporate story more comprehensively than it has in the past.
What’s clear, though, is that Andre and his team haven’t found the right balance between the company’s two approaches to brand management. Lilypad’s has