Why Brand Strategy Is Crucial for Destinations, Travel, and Tourism Brands
Having a strong brand strategy is indispensable in the destination, travel, tourism and related sectors.
Here we’re going beyond logos and taglines: it’s about crafting a compelling story that resonates with travelers and customers, builds loyalty, and drives revenue.
Many organizations know, in the abstract, that their brands are important, but brand is often left by the wayside, overpowered by seemingly more priority activities like marketing or sales.
What some marketers seem to forget is that a good brand will supercharge your marketing and sales efforts—giving you a strong foundation to build your messaging on, making your brand visually consistent and easily recognizable, and allowing the right people to identify with what you’re selling.
Looking at some of the actual business outcomes that are directly impacted by brand delivers an important perspective, one that shows brand needs to be top of mind for your business to be successful.
Brands account for significant business value
In travel and tourism, brands often account for up to 50% of a company's value. This attribution comes from the emotional and experiential connections travelers form with destinations and travel services, far more so than with pencil or dishwasher brands, let’s say.
Paris and Hawaii aren’t just places: they’re powerful brands that evoke major emotions and expectations. And they bring in the tourism revenue to prove it.
A strong brand drives increased revenue
Strong brands in the travel sector generate higher shareholder returns and revenue. Emirates Airline's brand strategy emphasizes luxury and superior service, allowing it to command a premium price and attract a loyal customer base, even for its Economy offering, driving massive top-line revenue.
Perceived value is a crucial revenue driver. Consider how Disney Parks have built a brand around “magical experiences.” This strategy enables Disney to charge premium prices, attract visitors globally, and generate substantial revenue from ticket sales, merchandise, and ancillary services.
Differentiating to outperform your competition
Travel brands with a clear sense of purpose and strong brand identity almost always outperform their competitors.
An example: boutique hotels and resorts that position as eco-friendly attract a niche but loyal segment of environmentally conscious travelers. This easily sets them apart in a crowded market and also allows them to command higher prices.
Drilling down into a niche differentiation boosts you above generic competition.
De-stress customer acquisition and retention
Strong brands reduce customer acquisition costs and foster loyalty.
Virgin Atlantic has a super distinctive personality and customer-focused brand strategy. Their planes are immediately recognizable on the tarmac, their customer service style is cheeky and intimate, and their interior design and uniforms are memorable. They’re a brand people connect with on a deeper level, because they’ve built an identity that feels fun, relatable, and friendly.
Take note: passengers like this! The result: higher customer loyalty and repeat business.
Pump your prices
Brands that are perceived as unique and valuable can command higher prices. Simple as that.
Four Seasons Hotels leverage a strong brand equity to charge premium rates while maintaining high occupancy. Customers know to expect quality, sophistication, and consistency at beautiful properties in fabulous places. They’ll pay lots to take the guesswork out of how their experience might be.
A sexy employer brand
Talent acquisition and retention is expensive and stressful, especially in travel and hospitality. A compelling employer brand attracts top talent. Everybody wins.
Employees are more engaged and motivated when they identify with the company's mission and values. Travel companies like Marriott and Hilton are known for their strong employer brands, which help them attract and retain skilled staff.
Which destinations have done it well?
Las Vegas: Reinventing Sin
Las Vegas successfully rebranded from a gambling-centric destination to a broader entertainment and family-friendly spot. The campaign positioned Las Vegas as a versatile vacation destination, boosting visitor numbers and revenue.
New Zealand: 100% Pure Campaign
New Zealand's "100% Pure" campaign highlighted the country's pristine natural beauty and adventure activities. The result? Millions of international tourists desperate to find hobbits amidst glorious nature, boosting the overall economy.
Iceland: "Inspired by Iceland"
The "Inspired by Iceland" campaign switched Iceland into a year-round tourist destination. Promoting unique landscapes, cultural experiences, and adventure opportunities, Iceland won a significant increase in tourism, even during winter months.
Croatia: "Full of Life"
Croatia’s "Full of Life" campaign emphasized the country’s culture, coastlines, and history. The rebrand increased tourist visits, making Croatia one of Europe's top travel destinations.
Which travel tech brands have done it well?
Airbnb: From Budget to Belonging
Airbnb redefined its brand strategy to focus on the concept of "belonging anywhere." This brand identity refresh helped the company navigate the pandemic.
Uber: Your Friend the Mobility Platform
Uber rebranded from a simple ride-sharing service to a comprehensive mobility platform, offering rides, bike-sharing, and food delivery. This strategic shift broadened the user base and enhanced market position.
Which hospitality and other travel brands have done it well?
Hilton: "Expect Better. Expect Hilton."
Hilton's rebranding focused on its commitment to exceptional service and quality across all its brands. This helped increase guest loyalty and attracted a broader range of travelers.
Singapore Airlines: The Singapore Girl
Singapore Airlines' rebrand introduced the iconic "Singapore Girl" campaign, symbolizing Asian hospitality and quality service. The result was a brand image as a premium airline with consequent customer loyalty and preference.
TUI Group: "Discover Your Smile"
TUI Group focused on delivering unique and personalized travel experiences under the "Discover Your Smile" tagline. This helped the company distinguish in the competitive package tour market.
Royal Caribbean: "Come Seek"
Royal Caribbean’s "Come Seek" campaign redefined the cruise experience by targeting younger travelers and adventure seekers. This new demographic diversified an older, more traditional customer base and increased bookings.
REI Adventures: Sustainable Travel
REI Adventures rebranded to emphasize sustainable and responsible travel, appealing to eco-conscious travelers. This positioned REI as a retail leader in sustainable tourism.
What You Can Do Next
Think of who the current users or visitors of your brand are, and how they interact with it.
Do homework on which trends and best practices are impacting your sector. Then be discerning on what to adopt and what to avoid.
Look at the competition to help differentiate, but remember to keep your own voice.
Remember that brand is not just logo, visuals, and a website, but your history, messaging, voice and tone, and many other facets.
Take steps now to align your go to market strategy to your brand.
Have fun with the process - customers and visitors love well-crafted brands and will come back to spend money time and again!