THE TOURISM AND HOSPITALITY INDUSTRY DURING COVID19
Updated: Oct 16, 2022
Seven ways to strengthen brand equity
The tourism and hospitality industries are one of several industries that have been severely challenged in surviving the pandemic. Small and medium-sized businesses were affected most because they were less prepared to adapt to the changes, thus making it difficult to maintain their market position and business operations during the crisis.
Brand equity is basically the degree of influence the brand name has in the minds of consumers or the value of the brand. This value is provided to the customers and the firm. Four fundamental precepts of brand equity that create value are brand awareness, perceived quality, brand association, and brand loyalty. High brand recognition amongst customers is necessary because it helps companies distinguish themselves from their competitors and make memorable impressions on consumers. Moreover, keeping the brand in a strong position is also a major factor for business success and survival.
Regarding the tourism and hospitality industries, customers tend to judge the brand based on:
1. Their overall experience with the brand.
2. How easy it is to purchase the service.
3. The adaptability of the service or product.
4. Their evaluations and impressions of the service obtained and its value.
Ways to strengthen brand equity during the pandemic
It is essential to realize that strengthening brand equity has numerous benefits. In particular, the most compelling evidence confirmed that stronger brand equity means a higher likelihood that the brand can better cope with a crisis. Hence, in order to strengthen brand equity and be a successful competitor in the tourism and hospital industries, here are several tactics that businesses can implement today that may positively affect the company's profitability and survival during the crisis:
1. Create adaptable services, experiences, and products. Also, create flexibility in business planning and forecast.
2. Establish efficient communication with customers through social media branding strategies.
3. Maintain open communication with customers regarding business or service changes and new developments and explain why these changes and developments are necessary.
4. Create awareness through information-based advertisements relating to specific protocols and measures and communicate what actions are taken to make the customers feel safe.
5. Maintain and create strong brand loyalty through periodic evaluations of customers’ expectations and needs, as well as the collection of continuous feedback from customers in areas such as hosting and customer service.
6. Focus on creating memorable experiences by providing high-quality service and products, delivering excellent customer service, and building customer relationships.
7. Lastly, create a stronger brand association by using the business location's unique characteristics and landscapes when branding.
Research has shown that customers in the tourism and hospitality industries still have the same expectations as before the pandemic. Hence, strengthening brand equity strategically during this crisis can help small and medium businesses survive through the pandemic.
References:
Aaker, D.A., 1992. The value of brand equity. Journal of business strategy.
Gössling, S., Scott, D. and Hall, C.M., 2020. Pandemics, tourism and global change: a rapid assessment of COVID-19. Journal of Sustainable Tourism, 29(1), pp.1-20.
Henriksson, J. and Karlsson Eriksson, O., 2021. Managing brand equity during an ongoing pandemic: A qualitative study in the tourism and hospitality industry during covid-19.
Jones, P. and Comfort, D., 2020. The COVID-19 crisis and sustainability in the hospitality industry. International journal of contemporary hospitality management.
Rahman, M.S., Fattah, F.A.M.A., Hussain, B. and Hossain, M.A., 2020. An integrative model of consumer-based heritage destination brand equity. Tourism Review.
Rooney, J.A., 1995. Branding: a trend for today and tomorrow. Journal of product & brand management.
