Brand performance of Chinese domestic vs. international hotels: Perceptions of operators as well as domestic and foreign guests

Abstract

The significant differences in financial performance between internationally branded hotels and domestically branded hotels in China inspired this study. As part of the research, we surveyed hotel operators and guests on their perception of brand performance of the hotel they managed and stayed at, respectively. Results showed that managers of internationally branded hotels were more positive about their brand performance than the guests were, whereas managers of domestically branded hotels had a similar, or sometimes lower, assessment of their brand performance. Surprisingly, from the guests’ perspective, domestic hotels received higher ratings on brand choice intention and brand loyalty, while receiving similar ratings on all other brand-related measurements, as compared to international hotels. Significant differences were also found in brand quality, trust in management, and reliability among the sub-samples. Chinese guests rated these components lower for both internationally and domestically branded hotels, while foreign guests showed stronger intentions of choosing the same domestic brand in the future. We discuss the implications for both international and domestic hotel operators.

Keywords: brand performance, brand equity, China hotel, international hotel brand, domestic hotel brand