Branding Best Western

We just finished up monopolistic competition in class with a look at how firms differentiate themselves with branding. An article in today's paper looks at the branding problem at Best Western.

Cara Vickery posted a glowing online review of the Best Western Inn of Sedona after a three-night stay last month.

"I am somewhat of a snob when it comes to hotels," the Ohio woman said on TripAdvisor .com. "I was leery of a Best Western, but this exceeded my expectations."

Best Western President and CEO David Kong cringes when he hears raves like that. "It might be a compliment for the hotel, but it's not a compliment for the brand," he said. "How much business are we losing because the expectation is not set properly?"

The Phoenix-based chain, the world's largest by locations under one brand name, is weighing a controversial plan to erase traveler confusion and boost bookings and revenue.

Executives have proposed creating three tiers of Best Westerns based on their design and amenities to give travelers a better idea of what to expect at its 2,300 independently owned hotels...

Best Western's problem is that the reality is more diverse than the brand suggests. The proposed solution - three brands all including the name Best Western - looks like a non-starter to me. To differentiate the brand you need a new name for the higher end and perhaps another for the lower end. Otherwise, confusion will reign.