Calyx Hotels and Resorts

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Calyx - Case Facts

20 year old company 12 boutique hotels and resorts worldwide 1500 rooms and 115,000 unique guest visits annually Maritime Hotel Flagship, started as a abandoned counting house in SF All hotels featured architectural details, furnishings, and culinary choices that reected local culture and tastes. Brand promise one-of-a-kind travel experiences in beautiful and unique locations

Strategies for growth

Current Scenario of cross selling

Cross

selling rate among all properties is 5% against 10-15% as enjoyed by Corporate Branded hotels.

Average revenue per room $750 If cross selling is 10% $785.71 If cross selling is 15% $821.43

S o u rce o f O ri i g n

Pro d u ct/ S e rvi ce D i re n ti ti n ffe a o

Corporate Branding

Pros
Contracts and name- two biggest assets of a hotel management company. Bulk purchases and cross sales- can help to realize economies of scale. For future contracts, the prospects of being associated with a big corporate brand name would be better for the property owners. Corporate brand will help the individual properties in attracting foreign travelers. Price premium.

Cons
The brand promise of Calyx is the individualized experience. Going for corporate brand, no matter how big or small, it will enforce consistency at some level, which is in direct opposition to the brand promise. As pointed out by Betsey, there will be critical questions

Corporate Sub-branding
Pros

May serve the purpose of Cross selling

Cons

A certain level of standardization has to be brought among the hotels. May effect the loyalty of customers Inertia from the hotel managers Calyx doesnt have a strong Brand

Endorsed Branding
Pros

A common linkage will be formed Brand equity of existing properties can be leveraged Lesser financial risk
Cons

Fails to create a strong global brand

Silent Brand Associations

Pros

It will help calyx in building up the brand keeping the individual brand identities intact. Will slowly but steadily help transfer the brand equity to calyx brand without disturbing the brand identity of individual properties. There should be minimum inertia from the managers. It is in sync with the core values of the brand calyx and doesnt disturb the customer perceptions.
Cons

Not all the customers will be able to make the association The process is very slow and not very definitive, as not all customers would be such keen

Endorsed Branding

Thank You