Impacts of Perception to Alliance Companies on Hotel’s Brand Equity According to the Types of Vertical Integration

Abstract

This study examines how hotel’s brand equity can be affected by customers’ perception to alliance companies and how this impact varies according to the types of vertical integration defined in prior conceptual framework. The total of 488 samples was collected from the customers of hotels located in Seoul, Korea. The results show that customers who trust the alliance companies perceive more strongly that the hotel’s image is friendly. Customers appeared to consider the image of the hotel and alliance company as same, if they are satisfied with the alliance company. The results imply that hotels are required to provide differentiated alliance services according to the type of vertical integration, such as price discount, various mileage programs, free valet parking service, and seasonal promotions. This will help hotels differentiate their services and consequently establish their own competitive advantage not only in their target customers but also in potential markets.