ACCOR (35 hotels*) market dominance in Singapore; a brand & price positioning challenge?
A more robust like for like comparison (given number of hotels by brand/segment and distribution of hotels across different type of locations across Singapore) is to compare economy and midscale brands price positioning for international brands and the leading domestic economy brand "Hotel 81" (who operate 28 hotels).
As outlined in previous post, Geylang area is a unique small district in Singapore, with a very high density of branded economy hotels (8 Ibis Budget and 8 Hotel 81 hotels). Geylang area is a less appealing area to stay (Red Light District, and less easy accessible with public transport), as also evidenced by 100Ks+ of traveller reviews (7.2 location score for Geylang (vs 8.5-9.5 for prime locations). We separate these hotels to understand the price loss (and potential negative brand impact) on operating in Geylang area.
Ibis Budget brand positions itself 16% above Hotel 81 (across Singapore, excl locations in Geylang), however only commands a 7% brand premium for their hotels in Geylang.
Ibis Budget Hotels are perceived only marginally better (overall experience) based on traveler experience (7.3 vs 6.5 for Hotel 81), while their portfolios (Ibis Budget and Hotel 81) are perceived to be effectively equally good (or bad) in terms of location attractiveness (location score Ibis Budget 7.8, Hotel 81 at 7.6)
With these facts & insights, where would you open your next economy hotel in Singapore?
Those who are working in the travel industry know, that these brand premiums can be very different in every single destination. There are many factors that have (in)direct impact.... We will publish similar studies around the world to (re)validate (y)our assumptions.
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See Part 1 of the same market and brand study:
Data source:
Online retail pricing as per booking.com for all hotels and markets listed in assessment. All available products (room type + rate plan) for 365 individual (1 night length of stay) days. For benchmarking and comparability purposes, SpotQuest developed a global product framework (Standard, deluxe, suite, etc). For the study to compare all brands all products are included. Availability and pricing based on 11th-13th May 2024. Traveler and review scores as per booking.com.
*Pricing trends exclude Sofitel Singapore Sentosa Resort & Spa (not available on Booking.com)