Global Update
WhaT ’ s in name ? a
While Orient- Express Hotels is rebranding at Belmond , it maintains its license to operate the Venice
Simplon-Orient- Express train .
Updates
Yoo blooms 10
Ritz-CaRlton ’ s ‘ the Cake ’ 10
DRaYCott ’ s gReen push 12
slow-gRowing Vine
12
toplanD ’ s bottom line 14
on the web 18
The hotel in Venice formerly called Hotel Cipriani by Orient-Express is now the Belmond Hotel Cipriani . The Copacabana Palace in Rio de Janeiro is now the Belmond Copacabana Palace . The names of the iconic hotels remain , but the corporate brand changes . The question on industry observers ’ minds is whether Orient-Express Hotels ’ decision to operate all of its hotels and travel experiences under the Belmond name will matter to consumers . Does the Orient-Express label matter ?
While rumors circulated about deteriorating relations between Orient-Express Hotels and SNCF , the French transportation company that owns the Orient-Express trademark , publicly the two parties stated in February that it was a mutual decision to terminate their long-standing hotel license agreement .
OEH President and CEO John Scott and Chief Sales and Marketing Officer Ralph Aruzza say the move is necessary as they need unrestricted control of their brand and its application . To that end , they are investing US $ 15 million to establish Belmond ( Latin for beautiful and world ) through enhanced promotional and marketing initiatives over the next five years and are confident they will effectively grow awareness of the collection through these activities .
The goal of the change , according to Scott , is to help consumers better connect the dots between the individual properties , stimulate increased stay across the portfolio and , therefore , grow revenue . At the same time , a cohesive brand strategy is expected to help drive development and third-party management opportunities .
While the news may have come as a surprise to some , Aruzza says the company does not expect a lot of negative feedback once people understand the reasons for the change . “ The travel trade in particular has been asking us for some time to take a stronger brand approach , as it makes it much easier for them to sell our products , and our guests appreciate the fact that they will be recognized by the brand for their loyalty ,” he says .
Scott sees a limited risk in disassociating with the Orient-Express name . “ Our guests associate with properties ,” he says . “ While Orient-Express has a great legacy as a train experience , Belmond will resonate better with all the products we offer . We don ’ t see the downside of switching .”
Scott adds that research revealed repeat business to individual OEH properties has been strong and as high as 28 %. However , crossover visits to other OEH properties was
8 HOTELS May 2014 www . hotelsmag . com