Storytelling. This word has made its way into the lexicon of the hospitality industry. It’s often used when outlining the experience a hotel offers or in describing the design direction of a property. But for Parsippany, NJ-based Wyndham Hotel Group (WHG), it has become a mission. By bringing a “story,” to each of its 16 hotel brands, a definition is born, a direction decided, and a guest identified. These 16 individually crafted stories tell much about each of the brands, which, in turn, creates for the guest a place to call home away from home, and for the owner/franchisee, a marketable distinction in the economy and midscale space.
The “what” is easy: Baymont Inn & Suites; Days Inn; Hawthorn Suites by Wyndham; Howard Johnson; Knights Inn; Microtel Inn & Suites by Wyndham; Ramada Worldwide (including Ramada Encore); Super 8; Travelodge; Tryp by Wyndham; Wingate by Wyndham; Wyndham; Wyndham Garden; Wyndham Grand; and Dolce Hotels and Resorts, which was acquired last year. And the “why” is now defined (see sidebar, page 37), but it’s the “how” that WHG wanted to share with our publication.
So, when the invitation to sit down with Geoff Ballotti, CEO of WHG, was presented, Hotel Business jumped on it. What better way to understand the new branding than to chat with the hotel giant’s top executive—as well as Lisa Checchio, VP, brand marketing and insights—and take a show-and-tell journey with them through the research that has not only informed the strategies and the processes that detailed them, but reveals the inspiration behind the ideation?
With our country so focused on the political scene right now, it was refreshing to get a different take on the idea of democracy—this time, as it applies to the hotel industry: great experiences for all, no matter status. Are you an adventure-seeker? WHG has a place for you. A sophisticated and savvy traveler? There’s a place for you, too. And not just because you, as a guest, want it. Or need it. But you deserve it. Noted Ballotti, “Why shouldn’t people on a budget staying at an economy hotel have the same experience that someone might have at an upscale hotel? Income shouldn’t dictate experience.” WHG’s strategic global transformation across all 16 brands is, according to the hotel company, “the democratization of hospitality” in an attempt to reposition its iconic brands for a diverse global middle class, as well as Millennials.
We started off the interview with two words: change and evolution, and it became the perfect segue to take a deeper dive into WHG’s strategy. “We stepped back and said to ourselves, ‘We are the world’s largest economy and midscale provider—and we’re committed to that space—but how do we make our brands more relevant for the future?’” said Ballotti. “The growth occurring in this industry is really in the midscale and economy space. You see all of our big competitors wanting to get into that space with new brands. Or wanting to create a new brand, and that’s great. They all have aspirations to have brand-new properties in the next few years.”
The mission of WHG, the world’s largest hotel company—based on number of hotels with a portfolio of nearly 8,000 properties worldwide—is clear: provide great value and quality experiences at every price point. And in order to accomplish this lofty but seemingly basic goal, WHG embarked on an 18-month study focused on 50 recognized hotel brands along with the primary decision drivers of thousands of business and leisure travelers around the world. The end result? A repositioning and revitalization of its 16 economy, midscale and upscale brands to meet the needs—and desires—of travelers regardless of their budgets or traveling styles. From refreshed interiors and distinctive touches and revamped—and catchy—marketing campaigns to enhanced perks targeted to the kinds of travelers each brand welcomes, guests will, as they’re unveiled, see the fruits of WHG’s labor, which began this summer.
The campaign based on the simple premise of “belonging”—a “who are you? who we are” strategy—sets the tone of each of the WHG brands; the focus less on the brands, per se, and more on their associated lifestyles. The theory is that this approach enriches the guest experience because the guest will no longer have to sacrifice a great and memorable stay due to cost and will be able to identify with a WHG brand. Moreover, according to the executives at WHG, it’s not only about value for money, but perhaps more importantly, about the freedom to explore “your world the way you want.” WHG’s transformation unlocks the opportunity to serve the “everyman,” whose needs and preferences are often more nuanced than the existing economy options available—an opportunity that WHG identified as untapped in the industry.
Just some facts: Travel and tourism is one of the fastest-growing industries globally, with its contribution to the global GDP expected to rise from $7.2 to $11 trillion over the next decade as the global middle class more than doubles from two billion to 4.9 billion. “We’re transforming at a time when the global travel and tourism industry is growing faster than the global economy, fueled largely by Millennials and an increasingly travel-curious middle class,” said Ballotti. “We have 1,800 Days Inns, we have 2,600 Super 8s, and those brands have close to 100% brand awareness and are in the sweet spot of the market. And not only here in the U.S., but in India, where there is an emerging middle class, and in China, where we just opened our 1,100th hotel. It’s an emerging middle class that is looking for those Western-branded experiences.”
Ballotti continued, “This is why we believe this democratization of travel, where those middle-class travelers are looking for an experience that is unique and well-defined with great programming that features consistency, great quality and a great loyalty program behind it, is the way to go. With Wyndham Hotel Group’s unmatched scale and the breadth of our portfolio, no one is better positioned to meet this demand and champion the everyday traveler.”
To uncover what matters most to this “everyday traveler,” WHG partnered with NY-based Siegel+Gale, a brand strategy and experience firm, to understand guests’ preferences and priorities and, consequently, design brand experiences tailored to elevate midscale and economy hotel stays by delivering both the “wonders of travel” and great value. The research revealed key insights into traveler expectations and concluded that one size does not fit all when it comes to economy hospitality. And, moreover, that a great experience trumps status. The resulting insights created the foundation for new brand identities for owners and guests built on differentiated values and guiding principles to drive more memorable experiences for travelers. Or, in other words, said Ballotti, “We’re unlocking the potential of our iconic brands with a unique new positioning. And it’s not only an evolution, it’s been a revolution. A revelation. It’s been eye-opening for all of our teams, and we’ve had a lot of fun with it.”
He continued, “This is something that has not been done tremendously well in the economy and midscale space, and I sincerely have never been more excited than I am about what we’re doing here. Clearly and uniquely defining each brand’s positioning and then bringing that positioning to life through programming has been done so well in the luxury and upper-upscale space. And we’re ready to do it in the economy and midscale segments.”
WHG has clearly defined each brand to stand for something that matters to the kinds of guests it targets, creating meaningful identities to meet the needs of every kind of traveler, bringing to life a brand personality as unique as that of its guests. “We put personas of our guests at the center of everything we’re doing so that the future of our hotels will be what guests need it to be, what our owners need it to be, not necessarily what we want it to be,” explained Checchio.
From re-energizing American classics such as Super 8, to enriching guest expectations at Travelodge, to enhancing the experiences at Microtel Inn & Suites by Wyndham and Wingate by Wyndham—which, respectively, were named best economy/budget hotel for 14 of the last 15 years and best midscale for the second consecutive year by J.D. Power and Associates the day of our meeting—guests can anticipate changes that will capture these brand experiences and speak to what WHG calls the new brand promises. And the emphasis is on the word promise: A big difference between a message and a promise is the message says what you’re going to do. A promise is really meaning what you say. And WHG certainly means it. After all, if not all hotels are alike, neither are all travelers. To that end, each brand is differentiated from the other—and the respective comp sets—from personality-based, rather than purely transactional websites, to the guestrooms.
And while the design of the interiors is certainly crucial to the overall revitalization endeavor, the approach to design is less about the actual look—though that is significant to the upgrades—and more about creating spaces that will produce lasting memories. Economy has been totally redefined and design has helped that transformation. Every option at every price point is becoming more design-driven.
“Design is so important in value and economy products,” said Checchio. “When you think about economy hotels or midscale renovations, you might think, ‘OK, they’re nice rooms.’ But it is hard to find something that sticks, something that remains with guests when they leave.”
In this industry, we keep hearing the words local, authentic, personal. Well, WHG not only hears them but is capitalizing on what they mean to the guest experience by putting a great deal of effort into creating a connection to these values and adding elements that speak to the location and to the experience, such as featuring high-impact headboards that are consistent throughout the brand—in this case, Super 8—but individual to the property. “It lets owners personalize their hotels and, at the same time, lets guests embrace the personality so that they remember their stay,” said Checchio. “Super 8 has become their friend on the journey. We’ve provided one of those Instagrammable moments.”
WHG has noticed that just the simple act of including local artwork and scenes of America in the design has an added benefit when in comes to engagement. “A guest can now go to the front desk, reference the artwork and ask, ‘How do I get there?’ so they can go out and experience it. We’re finding that more and more,” noted Checchio. “But,” she emphasized, “We really want to be aware of the fact that we’re not just introducing something because it’s really cool to do but because it’s going to have impact, going to drive guests, drive RevPAR. It’s thoughtful design.”
Ballotti shared a real-life example of this: “We have an owner, Jay Patel, in Boston who converted a hotel that was built in 1935 to a Super 8. He has been the owner of this hotel for the past 30 years and has never been more excited. He went out and got a professional photographer who took photos of nearby historic Sturbridge Village to put in his hotel. He now has something in his market that is at a price point and at a value that no other competitor has. He’s shot to number one on TripAdvisor, and he is one engaged owner. We have hundreds of Jay Patels right now who have followed our roadmap on the ideation. We get them to buy in before we launch anything.”
WHG starts and ends every discussion with its franchise advisory council, according to Ballotti. “We’re well into the renovation and re-imagination of the Super 8 guestroom. This is one of the most engaged ownership groups we have and they love the brand, love the positioning—which focuses on the spirit and adventure of the open road—love the new artwork and love the new guestrooms.”