By Dennis A. Marzella

Some hotels want guests to remember them for their free breakfast, chocolate chip cookies, or bathroom amenities. But remembering doesn't guarantee a return visit. When it comes to brand loyalty, guests are becoming increasingly fickle and quick to switch their patronage for better rates, frequent flier miles, a free night....even free phone cards.

According to the YP&B/Yankelovich Partners 1998 National Business Travel MONITOR, there has been a significant decline in two of the three measures used to track loyalty trends. Although 7 out of 10 business travelers agree, "I do not have the time to investigate the quality of different hotels, so I stay at the same hotel brand I did the last time," there was a statistically significant decline from the previous year (71% versus 78%). Moreover, there was also a significant decline in the proportion of business travelers who say "it is very difficult to get me to change brands" (65% versus 75%).

This pattern suggests that while the majority of business travelers value brands, a substantial proportion are not loyal to any one. If this trend continues, there could be trouble in River City. In other words, to millions of travelers, a hotel is a hotel is a hotel.

This is not surprising in an industry that has undergone tumultuous changes in ownership and management, and one where franchising is prolific. Since brand loyalty is an important dimension of brand equity, brand marketers should heed the warning and take appropriate strategic action to make their brands more relevant to their customer base. In a social climate where consumers are less willing to compromise, business travelers are likely to be responsive to brands that step up to the plate and take a stand with a clear market position-eliminating contradictory cues.

Even among leisure travelers who find a hotel brand that satisfies them, 45 percent say they would consider switching brands, suggesting that the loyalty issues is also relevant when analyzing the travel patterns of vacationers.

While business and leisure travelers in all demographic groups profess specific hotel, airline, and car rental brand preferences, those preferences are frequently compromised by marketing and promotion. Less fickle, perhaps, are consumers who prefer luxury hotels, some of whom pay to participate in guest recognition programs.

"There is no question that loyalty is deteriorating as each segment becomes more crowded," said Mike Beirne, hospitality industry reporter for Brandweek. "At the high end, consumers don't stay within a brand, although some companies are trying to brand 'luxury collection' hotels. People who are well-traveled know a hotel's reputation. They are demanding when it comes to the accouterments. They will provide repeat business, but they select hotels based on recommendations and on what their friends say is the new best place...whether that's in San Francisco, Phoenix, or Hawaii."

In mid-priced and economy lodging segments, Beirne said that the hotel partnership with telephone and airline companies may be mutually beneficial now, but may ultimately dilute the personality of the brands.

YP&B/YANKELOVICH PARTNERS NATIONAL BUSINESS TRAVEL MONITOR™
Brand Loyalty Perspective:	1997 %	1998 %
When traveling on business, I don't have the time to investigate the quality of different hotels, so I usually stay at the same brand I did last time.	78	71*
Once I find a hotel brand I like, it is very difficult to get me to change.	75	65*
It is risky to stay at a hotel or motel brand that you are not familiar with.	56	54
*Denotes statistically significant difference from prior period.