Conducting a Conjoint Analysis to Build a Successful Hotel Brand

Are you a hotel professional willing to strengthen your branding and determine what best satisfy your customers? If so, you should consider conducting a conjoint analysis that will allow you to best identify your guest’s likings. Indeed, this research method can help you reveal valuable insights for your guest’s experience based on real-life scenarios.

What Does Conjoint Analysis Stand For?

Conjoint Analysis is a very popular research method that marketers use for the purpose of measuring the value guests place on facilities, amenities and services offered. Statistical techniques applied on results obtained enables to uncover guest’s preferences. Thus, it allows to better guide decisions when it comes to developing powerful brands and ensure profitable business. Below is a diagram showing what you can achieve with a conjoint analysis for your marketing strategies:

Image taken from: https://www.questionpro.com/blog/how-businesses- can-use-conjoint-analysis-for-market-research/

Conjoint Analysis Process for your Hotel

In order to proceed with a conjoint analysis for your property, you have to break it down into the different attributes defining your hotel. The next step would be to test different combinations of these elements in order to identify your customer’s desires. Through the participation of several participants from your target audience, you will be able to evaluate the components strengthening your property’s image. This will help you come up with conclusions as far as concern your business physical layout and operations. A conjoint analysis can be conducted to evaluate the perception of your guests towards your property’s facilities as follow:

Image taken from: https://www.semanticscholar.org/paper/Conjoint- Analysis-of-Price-Premiums-for-Hotel-Goldberg- Green/53bc9e1692181bcb117d58595935a5dd1f74d04d

This model can also be applied to help with the pricing decisions such as in the image below inquiring guests about several options:

Image taken from: https://www.qualtrics.com/au/experience-management/product/pricing- conjoint/

Courtyard by Marriott— A Hotel Concept Crafted through this Consumer-Based Marketing Technique

Marketing consultants conducted a conjoint analysis for Marriott International corporation in the late 90s which allowed the company to create a new hotel chain, Courtyard by Marriott. The study was an important guide for a new product development. Indeed, it helped determine a new hotel positioning, facilities physical appearance and market segment. This test marketing was successful as it launched a powerful hotel brand that has been significantly expanding.

The consumer study evaluated the main features the hotel would offer separately which were broken down into 50 different elements. This is how they divided the main aspects of the hotel and examples of the many different features they evaluated:

  • Hotel external facets (e.g:building, landscape, pool, location, size, etc.)
  • Rooms (e.g: size, design, AC, location, bathroom, etc.)
  • Food and beverage (e.g: restaurant, in-room dining, stores, kitchen, etc.)
  • Lounge (e.g: guest types, location, atmosphere, etc.)
  • Services (e.g: front office, bell desk, transportation, business center, maintenance services, children care, etc.)
  • Facilities (e.g: spa, fitness center, playgrounds, etc.)
  • Security (e.g: security team, video surveillance, smoke detectors, etc.)The results of the conjoint analysis helped create an appealing hotel branding aiming at offering a “special little hotel at a very comfortable price”. Using similar procedures, Marriott International was also able to develop several lodging brands appealing to different audiences.

    Marketing science can do as well as engineers or architects to design sophisticated hotel concepts. The conjoint analysis marketing model has proven to be successful for developing powerful hotel brandings and offering unique guest’s experience. It has helped hoteliers identify what really influence the consumer decision making process. Once you perform a quality conjoint analysis, you will obtain conclusive data that will allow you to have your property valuable more than ever in the eyes of your audience. Be ready as Marriott to develop an innovative brand that will make a difference in the hotel industry!