Rebranding in service companies a&o Hostels case

Abstract

Mergers and acquisitions as well as the want to enter in new markets, if well projected, usually lead to the rebranding process. The whole company organization lives a turning point. A change in name, as useful as dangerous, is a process that allows the company to change consumers’ perceptions about the company, deleting all the previous connections with the older name. The repositioning strategy, accordingly, aims to make people positively thinking about the brand; their “top of mind” brand associations should mirror as homogeneously as possible a positive image of the company. In service companies, employees play an essential role: by interacting directly with customers, they have to convey exactly the core values of the brand identity; a brand mantra, with few words, may remind to all stakeholders what the company believes in. In the hospitality industry, in particular, the relationship between corporate brand, clients and workers is fundamental. The a&o Hostels case presents an overview on the main changes a service corporate brand lives. Rebranding in the accommodation/hospitality industry is a very delicate phase, and the brand image plays consequently a powerful role. Rebranding is hence an opportunity to exploit if the brand identity remains coherent to its core values and enough brave to navigate towards the unknown world of innovation.