Airôtel Rümlang
Airôtel Rümlang’s Branding Challenge
A Conjoint Study
Introduction:
According to the text, the situation in Airôtel Rümlang and the international scenario at that time showed that some considerations should be taken into account. This is precisely what Irene Fellner did when she contacted her friend Thomas Meier for conducting a conjoint analysis. As we read, due to the terrorist attacks of September 11th, the Tourism market in Switzerland suffered a steep decline (being the Americans one of the most important groups of visitors in the European nation).
The conjoint analysis showed that on average, people were willing to pay from CHF 25.53 to CHF 74.68 more (for the same utility as Airôtel Rümlang) when belonging to a well-known brand like Best Western Hotels or Holiday Inn. In the meantime, the premium of a brand name was between 13.7% and 39.4%. As of the results of the conjoint analysis, it was pretty obvious to Mrs. Fellner that even though she had been leaning towards staying independent, the possibility of franchising with some of the prestigious hospitality brands turned really interesting. The elements shown above, along with a favorable geographic location and the recent economic downturn incentivized her to start thinking about that possibility.
Development:
As we have studied, the ultimate objective of a good mark-based management strategy is to generate and maximize profits as much as possible all while improving consumer satisfaction and brand loyalty. Following this idea, we think that in order to answer the former question we need to analyze the expected profitability of Airôtel Rümlang without franchising and compare it with the possible (due to a lack of data) profitability once being part of Comfort Inn Hotels. We may also take into consideration the gains from acquiring the new “Comfort” identity and compare it with the losses of not being Airôtel Rümlang anymore (as a brand name).
As we could see in Exhibit 3, the total profit
A Conjoint Study
Introduction:
According to the text, the situation in Airôtel Rümlang and the international scenario at that time showed that some considerations should be taken into account. This is precisely what Irene Fellner did when she contacted her friend Thomas Meier for conducting a conjoint analysis. As we read, due to the terrorist attacks of September 11th, the Tourism market in Switzerland suffered a steep decline (being the Americans one of the most important groups of visitors in the European nation).
The conjoint analysis showed that on average, people were willing to pay from CHF 25.53 to CHF 74.68 more (for the same utility as Airôtel Rümlang) when belonging to a well-known brand like Best Western Hotels or Holiday Inn. In the meantime, the premium of a brand name was between 13.7% and 39.4%. As of the results of the conjoint analysis, it was pretty obvious to Mrs. Fellner that even though she had been leaning towards staying independent, the possibility of franchising with some of the prestigious hospitality brands turned really interesting. The elements shown above, along with a favorable geographic location and the recent economic downturn incentivized her to start thinking about that possibility.
Development:
As we have studied, the ultimate objective of a good mark-based management strategy is to generate and maximize profits as much as possible all while improving consumer satisfaction and brand loyalty. Following this idea, we think that in order to answer the former question we need to analyze the expected profitability of Airôtel Rümlang without franchising and compare it with the possible (due to a lack of data) profitability once being part of Comfort Inn Hotels. We may also take into consideration the gains from acquiring the new “Comfort” identity and compare it with the losses of not being Airôtel Rümlang anymore (as a brand name).
As we could see in Exhibit 3, the total profit