Why do hotel chains use so many different names for the same class? [closed]

My question doesn't involve names that stem from mergers and acquisitions. Keeping these names is less costly than replacing them, like replacing Ritz-Carlton, Sheraton, Delta, Westin with Marriott.

Rather, why did Marriott commence Fairfield Inn in 1987, when it founded Courtyard in 1982?

Similarly, Hilton founded Hilton Garden Inn in 1996, and acquired Hampton in 1999. Why then did it commence Tru by Hilton in 2016?

The screenshot beneath is from Hilton and Marriott.

hotels

Best Answer

The Hotel market is, like many other markets, splintered into many different brand names, and consumer don't follow consolidations well.
In other words, a single brand name is not able to capture more than 3 or 5% of the market, no matter how great they are.

Therefore, offering multiple brand names allows the chain behind it to grasp a larger share of the overall market. Consolidating all Hilton brands in for example two brands would reduce their market share over the next years significantly; obviously not something Hilton is interested in.

Other well-known examples are detergents (basically the complete detergent market consist of two companies, but they need to offer several dozens of 'brands' to defend their market share); sweets; and so on.

In addition, each brand tries to cater to a slightly different market segment, as customers have different priorities.

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Why do hotels have different names?

As in all franchises, a hotel is granted exclusivity over their brand for a certain area. By making different brands with different amenities, the chain can offer more hotels, and rooms, in the same market, while limiting to a certain extent the competition between franchisees. Thanks.

Why do hotel brands have several individual brands?

Hotel companies don't want to capture only a particular set of customers. With having a single brand, it becomes difficult to do so. To focus on every type of traveler which includes business travelers, long term stays luxury, they prefer making different brands.

Why are there so many different Marriott hotels?

Marriott, like the other big hotel companies, owns very few of its own hotels these days. The hotel owners enter into multiyear contracts with companies like Marriott allowing them to use a specific brand.

What are the classification of types of hotel rooms?

Different Room Types in hotels

Single: A room assigned to one person. ...
Double: A room assigned to two people. ...
Triple: A room that can accommodate three persons and has been fitted with three twin beds, one double bed and one twin bed or two double beds. ...
Quad: A room assigned to four people.

International and National Hotel Chains

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