For any hotel brand, building something that stands the test of time can be a serious challenge, particularly as guest needs are constantly evolving. In a bid to be all things to all customers, major chains are increasingly responding to this unpredictable market by introducing soft brands that can, potentially, offer more tailored experiences. 

This year alone, two new soft brand collections were debuted by major hotel companies - Tapestry Collection by Hilton, announced in January, followed by the Wyndham’s June launch of Trademark Hotel Collection. 

While on the face of it offering hotel guests a “boutique” experience, in reality these soft brands have been built to appeal to hotel owners who are looking at management agreement opportunities but who are not happy to settle for the major chain “cheese factor”. For the major chains, it offers a perfect opportunity to steal market share from a very profitable segment - the independent hotel. 

“The big hotel chains are in the business of pretending they aren’t big chains. They want you to think they are boutiques,” says Pauline Frommer, editorial director of Frommer’s Travel Guides. “This dizzying array of brand names is a good way for them to hide. The vast majority of the public is not going to keep track.”

What is a soft-brand? 

Put simply, a property that has a distinctively niche identity yet provides all the big-brand benefits such as sleek booking engines, a customer loyalty program and precision front and back-of-house operations. 

Does it stack up?

While always remaining under a parent company, soft brands are generally more proficient in revenue management, customer loyalty programs and sales and marketing through worldwide distribution platforms than your standard independent hotel. This is because they can leverage big-brand standardisation that allows more security and stability. 

But this security does come with costs in the form of franchise, base, and incentive fees, along with stringent brand, design and construction standards that must be adhered to. 

What does it mean for independent hotels?

With an estimated 70 per cent of hotels outside America being unbranded, there will be a continued focus on soft brands entering APAC. This is already unfolding, with InterContinental Hotels Group and Pro-invest Group signing the first Even Hotels deal in Australasia. The deal will see the wellness soft brand make its global debut outside North America in Auckland, New Zealand. 

The threat that major chain soft brands face is that multiple groups are competing with exactly the same offerings, for exactly the same customers … and confusing them in the process. 

Today’s traveller seeks a sense of place and community in a hotel, whether it be embracing local food and wine, attending local events, being immersed in the region’s culture or simply getting directions from a staff member who is passionate about their city. 

This is where independent hotels hold the upper hand. But if the major chains can avoid over-proliferation and offer the sense of connectedness that independents do so well, non-traditional platforms such as Airbnb should be the least of the independent hotelier’s worries; major chain soft brands should be.