Effects of Branding on Business Performances at the Selected Hotels

Abstract

ABSTRACT This research investigated the effect of branding in particular on the different hotels performances as well as in enhancing their image. Hotels branding is critical for its business success and thus to succeed, information on branding is needed to guide management decisions that will sustain the hotels and make them competitive. It assessed the effects of branding on images of hotels in Uganda. The study was guided by objectives; to profile the various branding strategies employed by Imperial Royal hotel, Munyonyo Speke resort and Munyonyo Commonwealth hotel in its operations, to determine the effects of branding on the image of hotels and evaluation of the challenges faced by hotels in their branding process. Questionnaire was administered and interviews were employed to collect data that was analyzed using computer special package (SPSS version.16). The study established that different branding strategies are used by the hotels. The strategies include; maintaining good reputation , good brand name , partnering with other branding strategies , moving to market place before other brands and provision of quality services at the hotel. The study further revealed that hotel branding has a positive effect to the development of the hotel through creation of hotel reputation, increasing visitors to the hotel, creation of repeat purchase, increasing customer royalty which results to increased sales. The findings show that that branding has contributed to hotel reputation, increased hotel sales, increased customer base and created repeat visits to the hotel. Despite the branding process at the hotel, the study revealed that there are different challenges experienced during the branding. The identified challenges were of problems of customer acquisition, high costs involved, meeting customer expectations and ever increasing competition. As the result, the study recommends that the hotel should ensure reviewing of activities and evaluating the successes through metrics such as levels of brand awareness and levels of engagements. Regular reviews would help seize and exploit new opportunities while upholding hotel commitment to remain true to hotel vision and brand strategy and need by management to conducts aggressive marketing campaigns to create awareness of its brand especially to potential customers and to try to penetrate the new areas where they have not yet reached.