The Hotel and Hospitality Sector's Private Label Water Supply

 The Hotel and Hospitality Sector's Private Label Water Supply

Revenues and average room rates in the US hospitality and lodging industry have been rising sharply recently. Most industry projections indicate sustained revenue growth despite external variables like global terrorism and the sharp increase in fuel prices.

But new research shows that inadequate service delivery and branding distinctiveness is costing the industry a ton of money. Customers have shown brand loyalty in the past, therefore this tendency is relatively new.

An excellent and efficient way to promote high-quality brand imagery and differentiate service offerings is through private label drinking water.

Missed Chance

Revenue from business travelers alone amounts to $40–$50 billion each year, making the hospitality and lodging industry a significant contributor to the U.S. economy. However, a well-known research organization recently found that frequent visitors aren't brand loyal, and that this lack of loyalty costs hotels up to $20 billion annually in lost revenue.1

An opportunity for the industry to continue receiving cash flow and become profitable has been missed due to this revenue disadvantage.

Loyalty to the Brand Leads to Increased Profits

Because of new sales cost savings, the potential to market additional higher margin features to loyal customers, and word of mouth or informal referrals to new customers, most analysts and academics agree that loyal customers comprise the backbone of a successful firm.2

The hospitality and lodging industry is no different from any other in that building and sustaining customer loyalty to the brand is a key business goal. A company's most valued client segment is loyal consumers, according to one survey. 3 As a result, the industry as a whole may gain or lose from the significance of client loyalty.

Without consumer devotion to their brands, businesses in the sector will have little choice but to compete on price rather than quality, a strategy that has failed time and time again.

The optimal allocation of resources to achieve maximum client loyalty is a problem for every management. Not only does this include large chains and franchises, but it also applies to mid-range hotels.

Conventional Approaches Are Ineffective Today

Nowadays, building brand loyalty requires more than just reward programs and great customer service. Conventional strategies, like loyalty programs and rewards systems, have become industry staples, and hotels aren't able to attract and retain customers because their brands aren't unique enough, according to studies. Service differentiators have transformed into service standards and cost centers: rewards programs. This is due to the fact that the majority of enterprises in the industry offer them. So, according to some experts, point systems and reward systems are now just another expense of doing business.4

This has led to heightened anxiety about the efficacy of consumer loyalty programs in boosting both loyalty and bottom lines.5

The primary reason customer service and satisfaction no longer play a significant role in building and sustaining brand loyalty is due to the fact that competition has fostered a culture of outstanding customer service. Research has also shown that satisfied customers aren't necessarily loyal to a brand until their rivals provide worse service.

In their quest for improved customer loyalty strategies, several hotels are delving into the universal human tendency to remain faithful to familiar brands. Companies in the sector, from the largest luxury hotels to the most modestly priced ones, need to work on improving the methods by which they create and convey their brand offers.

Prioritize Brand and Loyalty Building through Design, Services, and Amenities

Many hotel chains and individual properties are reinvesting in renovated spaces, innovative value-added and telecommunications services, and an expanded range of amenities in an effort to make guests' stays more special and to set themselves apart from the competition.

New facilities, such as high-quality drinking water, in-room workout equipment, and several checkout options, are being welcomed by guests at hotels nationwide, according to a recent analysis by PricewaterhouseCoopers. Hotels are responding to rising consumer expectations, increasing their bottom line, and strengthening their brand loyalty by enhancing and expanding their range of amenities.

A cohesive and understandable branding message has to be created and communicated in addition to spending money on new facilities and services.

Visuals and the Message of the Brand

Crafting a compelling marketing message entails more than just making a brand statement. One of the most effective ways to promote a brand is through its visual identity, which should speak to the customer's emotions in order to foster lasting brand loyalty. Design excellence has a direct correlation to the strength of the brand's message and, by extension, the devotion consumers feel toward that message.

Hence, tremendous caution is required throughout the branding process to avoid watering down the brand concept.

Personal Branded Water for Consumption

Promoting a high-quality brand with private label drinking water is a perfect and effective strategy. Businesses can create and develop a label with a bespoke message through private labeling. This allows them to promote a brand with a clear and high-quality message and excellent bottled water. Advertising bottled water is consumable, therefore it sticks with consumers as the product is both instant and everlasting.

The following are a few advantages of private label water:

• A personalized, high-quality message made for you to use or resell.
• Designs and text can be changed to match current events, such promotions and tournaments.
• Individuals who use the water frequently and take it with them, which increases the product's visibility.
• Water that is both popular and widely believed to be beneficial to health, and that is pure. With rising usage and an increasing number of hotels include high-quality water in their amenity packages, the private label message effectively reaches more prospects.
• A quick reaction to the marketing message at a low effective cost.
• Advertising targeting consumables, which leaves an imprint on consumers and lingers in their minds.

Finding the Right Private Label Water Provider

The quality of the products offered by the many private label water suppliers varies greatly. Consider the supplier's water quality, label design and production quality, and customer service quality before making a final decision. What follows is an explanation of each:

Water Caliber

The success of the product and the brand's message depends on people drinking water that is both healthy and delicious. Branding efforts will be in vain if the water is unpleasant to drink or of poor quality. The most high-quality water available today undergoes a rigorous purification process that includes distillation, filtration, and oxygenation. This eliminates any trace of contaminants, such as germs and toxins, leaving behind a water with a clean, crisp flavor.

Producing High-Quality Labels

An important part of making a product is the label or message, and although low-quality labels convey low-quality information, high-quality labels convey high-quality information. Producing a low-quality message is costly and reflects poorly on the brand.

Water resellers, not bottlers, with desktop-model "thermal" (or "thermal wax") printing systems provide for the great bulk of private label prospects in the US. This fact must be acknowledged. The quality of these "thermal" devices is incomparable to that of even consumer-grade inkjet printers, which are incredibly inexpensive (usually between $10,000 and $20,000 depending on configuration) yet of extremely low quality. Despite the decreased quality, many companies opt for these printers due to their affordable price, resulting in labels of poor quality.

On the other hand, if you want your label to look like a high-end brand you may get at a gourmet grocery store, you need to use printing equipment that is designed for professionals. If you want a professional-looking label, you can use one of three printing options. Here are the three categories:

1. Lithography using a rotary offset
2. The process of flexography
3. Digital presses of superior quality

Digital equipment from Heidelberg or HP is the most cost-effective option for most smaller runs (about 10,000 units), however instead of $10,000 to $20,000, the minimum equipment expenses for these professional solutions range from $750k to $1.25m per station.

Prior to selecting a private label bottler, it is crucial to have a thorough understanding of these facts. Because private label clients demand such small runs, those who sell low-quality labels will convince you that there is nothing better available. That, however, is completely false.

Your label won't stand a chance unless it's expertly crafted from premium materials and printed utilizing a method that consistently produces excellent results. For labels to last, waterproof lamination is also necessary. With the correct tools, this is a breeze to accomplish at a low cost per unit.

Level of Service to Customers

A lot of back-and-forth between the buyer and seller goes into the intricate process of creating private label drinking water. Building a successful brand and product requires open lines of communication and an emphasis on providing exceptional customer service. The branding effort will be in vain unless the provider significantly increases their focus on customer service.

If you want to build a superior brand offering and increase your sales and profits, use a reliable provider.

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