Introduction

In a competitive market, branding is among the factors that drive a hotel’s success. Consumers today, when choosing a hotel product, do not only consider utilitarian qualities such as location, service level, and price but also consider emotional value product. Organizations hence strive to create solid brands that ensure recall, promote loyalty, and allow them to be distinguished from others.

With the advancement of digital technologies and changing consumer preferences, traditional hotel marketing methods are being replaced by new strategies focused on personalization, emotional customer engagement, and sustainable development. The aim of this study is to analyze the role of branding in the hotel sector and its impact on hotel positioning in a competitive market.

Main part. Branding in the hotel industry

Branding is an overall strategic activity that aims to construct, create, and nurture the image of the hotel in the minds of customers. It stands in contrast to traditional marketing that aims to drive services and trigger sales. The strategy forms the long-term personality of the hotel so that it becomes recognizable, competitive, and attractive to visitors at an emotional level.

A brand in scientific literature refers to a set of tangible and intangible characteristics that render a product or service unique from its competitors and build long-term relationships in consumers’ minds that influence their behavior. It is, according to the definition by Kevin Keller, a renowned marketing scholar, how one manages a firm’s or product’s image so that there is a healthy relationship between the brand and the targeted audience [1]. To the hospitality industry, it means not just serving quality but creating experience that will make customers remember with regard to a specific hotel or hotel chain.

There are a number of industry-specific characteristics placing particular demands on branding strategy. Firstly, it is an intangible service provided by a hotel and thus can scarcely be evaluated prior to consumption. Secondly, the quality of the service is reliant on the human factor, which is why, in this industry, branding is particularly crucial for building trust and guiding customer expectations. Third, the hotel industry of today is characterized by intensive competition, and thus companies need to have clear positioning and differentiation in the market. Thus, branding is not just an advertising method, but a multifaceted process that involves reputation management, service quality, customers’ emotional involvement, and corporate culture.

Branding strategies for hotels in a highly competitive environment

Creating a solid and enduring marketing concept requires an integrated approach, including strategic positioning, customer expectation fulfillment, and establishment of an emotional bond with the audience. The beginning of creating a differentiated value proposition that distinguishes a hotel from others is to identify the target audience and its preferences [2]. It is formed taking into account market trends, customer needs and competitive environment. In the hospitality industry, firms can work with various segments, offering specialized solutions for tourists, business travelers, youth markets, or families.

Visual identity is another crucial aspect, which includes corporate style, logo, architectural features, and interior. A unified design system creates a familiar image, encourages customer trust, and strengthens reputation. Branding, however, is not only about external appearance — it also includes corporate philosophy, mission, and values, which are articulated in service standards, corporate culture, and customer contact.

A strong brand allows hotels not only to form a positive image among consumers but also to provide engagement with customers. For this reason, emotional reinforcement strategies are used, including personalized service, customer experience, and building brand loyalty. Hotel companies intentionally use loyalty programs and offer individualized services to build long-term relationships with clients and reduce consumer sensitivity to price changes. In a competitive environment, they strive not only to provide standard services but also to create a unique stay experience, making it an essential part of their marketing strategy. To achieve this, various strategies are utilized to meet changing customer needs and address new trends.

The modern hotel business cannot be imagined without digital technologies, which have emerged as a major brand promotion and customer interaction tool. Technological innovation determines how a hotel’s image is created and how it provides an individualized approach and multichannel communication with customers (table 1).

Table 1

The role of digital technologies in brand promotion [3, 4]

The use of digital technologies not only enhances the effectiveness of customer communication but also creates a unique user experience, which is a contribution to the formation of long-term loyalty. Moreover, innovative solutions open up the possibility of swift adjustment to the changing needs of guests, thereby providing business processes optimization.

Thus, hotel branding is the main means of increasing the competitiveness. Its development requires a comprehensive approach such as strategic positioning, value proposition implementation, and the use of digital technology to interact with customers. Hotel companies focus on emotional attachment, personalized service, and two-way communication in a highly competitive market to consolidate their market positions and maintain long-term loyalty.

The impact of branding on hotel competitiveness

Hotel perception by the customer is also strongly determined by branding, which generates expectations regarding quality of service, and ambiance of stay. Branding serves as a guarantee of certain standards and reduces uncertainty involved in the choice of a hotel. In an oversaturated market with many types of hotels of similar features, the brand is one of the determining factors for the decision.

Trust is built on a hotel’s reputation, the quality of its services, and its consistency in meeting guest expectations. The greater the trust, the greater are the chances that a guest will keep coming back to the hotel again, thus making the customer base stable and reducing the cost of bringing in new visitors [5]. This creates long-term advantages for the hotel as not only is a high occupancy rate guaranteed but also opportunities for recommending to other potential visitors increase.

Brand image also influences the hotel choice process. When there are many alternatives, customers resort to familiar brands that are associated with reliability and high-quality service. This is built up through multichannel interaction, including advertising campaigns, customer views, and direct experience.

The brand also contributes significantly to the financial well-being of the hotel company because it directly affects profitability, room occupancy levels, and scalability. A strong strategy allows the hotel to set higher room rates because customers are willing to pay for a standard level of service and the company’s reputation. Considering the brand as a symbol of quality and reliability reduces customer price sensitivity, which positively impacts the profitability of the hotel.

The financial value of a brand is also indicated by its ability to command investments. Powerful brand hotel chains are likely to attract more capital, expand their operations, and enter new markets. Investors view the brand as an asset that offers stable revenue streams and high consumer confidence. Therefore, the hotel firms are able to manage their financial strategy with greater advantage through the power of the brand employed to complement market value and create long-term competitive advantages.

Modern hotel business is developing against the background of increased sensitivity to social responsibility and sustainable development. The customers increasingly prefer hotel brands that demonstrate commitment to sustainable environmentalism, social responsibility, and ethical operations. These are the fundamental pillars laid down in positioning the hotel as they segment the hotel from rival hotels by creating a differential value proposition. With the integration of green development concepts such as reducing the carbon footprint, utilizing energy-conserving technology, restricting single-use plastics, and involving the locals, a hotel chain can become not only competitive but also uphold its image based on the expectations of consumers having an environmentally conscious lifestyle [6]. These attributes can serve as a platform on which to promote the hotel as a socially conscious and green brand, yet another competitive advantage in the marketplace.

Socially responsible companies have attention from a broader audience, for instance, business consumers and companies that select partners according to their input towards sustainable development. This is especially important in a competitive market, where every element of branding can be a deciding factor in hotel positioning and the attractiveness of various customer segments.

Thus, branding emotionally and visually impacts consumers, in addition to being a focal point in creating enduring competitive edges via the maintenance of high occupancy rates, establishment of trust, and creation of investments. With an extremely competitive market situation, proper branding not only allows hotels to maintain their place in the marketplace but also create additional value to customers, ultimately contributing to building their financial results.

One example of a successful marketing concept in the hotel industry is Marriott International. Brand recognition in the USA in 2023 was 82 % (fig. 1).

Figure 1. Brand awareness of Marriott International [7]

Thanks to its diversification strategy, the company has been able to reach a wide range of clients, from business travelers to those seeking a special experience. The clear positioning of each brand within the network allowed the company to take a leading market position and increase its competitiveness. The division into premium, business-oriented, and lifestyle brands helped attract different audience segments without losing the individuality of each hotel product. The loyalty program, which integrates all components of the network, created a stable base of regular customers, increasing the rate of repeat bookings. As a result, Marriott’s successful branding has contributed not only to the increase in market share but also to strengthening customer trust, making it one of the most competitive hotel chains in the USА [8]. This example shows that a sound diversification strategy and clear brand positioning allow a hotel chain to reach different audience segments while maintaining the uniqueness of each product. Effective management contributes to the growth of repeat bookings and an increase in market share.

Conclusion

The analysis of the impact of branding on the positioning of hotels in a competitive market has shown that its successful management is a strategically important tool in the hospitality industry. The creation of a unique image, the development customer experience, and the use of digital technologies allow hotel companies not only to discover new consumers but also to reinforce the loyalty of current ones. Modern consumers are increasingly concerned not only with the functional qualities of hotels but also with their value orientation, service philosophy, and level of personalization, such that branding emerges as a driver of competitiveness.

Online services consumption and personalized customer interaction enable hotels to distinguish themselves in the marketplace and ensure sustained demand. Respectively, under the circumstances of dynamic development of the industry, branding remains one of the driving forces of long-term success of hospitality businesses, their market value, and customer reputation.