November 13, 2023

A Study of the Top Hotel Brands in Mykonos

Table of Contents

    Introduction

    Brand popularity is a crucial aspect of success in the hospitality industry. Strong branding can lead to perpetually strong brand awareness, customer loyalty, and a competitive edge in the market (Commercial Power). Recently, our Performance and Data Analysis team conducted research on the top hospitality brands (hotels and clubs/restaurants) in Mykonos. We analyzed about 7 million searches on Google, as well as searches on Bing, social media posts, mentions, and data from Social Media listening and Sentiment Analysis in order to measure the magnitude of brand popularity associated with these institutions.

    Understanding Brand Awareness

    In order to understand brand awareness, it can be useful to ask ourselves questions to determine how memorable a brand is. For example:

    • “Which brand comes to mind when you think of a hotel in Mykonos”
    • “Tell me a Restaurant in Mykonos”   etc

    Understanding the different aspects of branding is crucial in developing a successful brand strategy. In order to achieve that, the following aspects need to be taken into consideration:

    • Brand recognition –  measures how familiar consumers are with your brand
    • Brand recall – measures how quickly your brand comes to mind in relation to your industry or product
    • Brand image –  is what people think of when they hear your brand name
    • Brand identity – measures how consumers perceive your brand based on their interactions with it

    By considering these metrics, businesses can create a strong and effective branding strategy that resonates with their target audience.

    Methodology

    In our study, we utilised search volumes for the past four years, as part of our methodology. Through this data, we were able to gain a detailed view of how search volume for various hospitality brands in Mykonos has changed over time. By analysing this information, we were able to identify key insights that helped us adjust our marketing strategy to ensure that we were driving search awareness for our top-rated hotels and restaurants in the regions that mattered most to our clients.

    In addition, we combined multiple data sources in different ways to produce an index that ranked the top hotels and restaurants in Mykonos. By analysing and combining data from Google Trends, Bing, social media posts, mentions, and data from Social Media Sentiment Analysis and social listening we were able to produce a more holistic picture of the hospitality industry in Mykonos rather than by relying solely on one data source.

    Social listening in particular is a crucial factor to consider when assessing brand popularity. It involves tracking the frequency of brand mentions on social media, the platforms with the most mentions, the demographics that mention the brand most, and whether the mentions are positive or negative.

    With the help of all these different data sources, we were, thus, able to create a comprehensive picture of the hospitality industry in Mykonos and rank the top hotels and restaurants in a more nuanced and accurate way than by relying solely on one data source.

    The Index PRSI (Panadvert’s Relative Strength Index)

    Our “PRSI” index presents a comprehensive overview of the relative strength of different brands in Mykonos on a range from 0-1000. The top-ranking brand stands out with a significantly higher power level than the second-ranked brand, with a score of 985 compared to 303. The third-ranked brand has a power level of 249. However, these significant differences are primarily limited to the top 10 positions. Beyond this, the distribution is more linear, with changes between positions becoming smoother and more gradual. This index serves as a valuable benchmark for hospitality businesses to determine their position in the market compared to their competitors and explore strategies to enhance their brand power.

     A variety of social media listening and sentiment analysis tools were used for any single brand in Mykonos

    The Strongest Brands in Mykonos

    According to the aforementioned Index, it is obvious that strong branding in Mykonos is not limited to just hotels as several restaurants and clubs have also gained popularity over time. Nammos Restaurant Mykonos, Scorpios Mykonos, Cavo Paradiso, Nobu Matsuhisa Mykonos, Pringipote, Santanna and Super Paradise Club are just some of Mykonos’ most popular brands in the island’s hospitality industry.

    Combining the hotels and restaurants/clubs together, the final list of the most popular brands with sorted brand power and their respective PRSI score is as follows:

    BrandPRSI
    Scorpios Mykonos1000
    Cavo Tagoo Mykonos878
    Nammos Mykonos829
    Super Paradise Beach Club497
    Tropicana Club399
    Cavo Paradiso389
    Santa Marina – A Luxury Collection Resort – Mykonos293
    Saint John Hotel Villas & Spa230
    Mykonos Blu, Grecotel Boutique Resort218
    Branco Mykonos192

    The prevalence of Scorpios Mykonos could be attributed to the fact that it was mentioned in a hit Netflix reality series which premiered on may 19th, 2023.

    The Top Hotel Brands in Mykonos

    Since the vast majority of our clientele consists of hotel businesses, we created a separate ranking that determined the top hotel brands in Mykonos, which is presented below along with their respective PRSI scores:

    HotelPRSI
    Cavo Tagoo Mykonos878
    Santa Marina – A Luxury Collection Resort – Mykonos293
    Saint John Hotel Villas & Spa230
    Mykonos Blu, Grecotel Boutique Resort218
    Branco Mykonos192
    Semeli Hotel Mykonos168

    One thing that stands out about these top hotels is the power of their brand. Cavo Tagoo Mykonos tops the list with a nearly triple the relative strength index power compared to the second-ranked brand, Santa Marina. Cavo Tagoo Mykonos also has a strong social media presence, boasting an Instagram account with 2 million followers. This is a testament to the power of social media as a tool for building a brand. Bill & Coo Suites and Lounge or Branco Mykonos have leveraged the power of digital marketing to rise up the ranks instead.

    Brand Power vs Product Power

    When evaluating the influence of brand power versus product power, it’s essential to consider companies that have established a dominant market presence without necessarily relying on a single exceptional product. A notable example of this can be seen in the hospitality industry, where certain hotel chains have achieved significant success. Despite the fact that one particular property of a renowned hotel chain in Mykonos ranks lower in the overall rankings (-200), it is evident that the brand itself has effectively cultivated a strong reputation, influence, and a dedicated customer base worldwide. This serves as a compelling testament to the power of branding in establishing market presence and fostering customer loyalty, even without relying solely on a standout product.

    Is it an “elusive dream” to create a strong brand?

    It’s important to note that branding power can fluctuate over time, with certain brands gaining or losing popularity. Our team analysed this list month by month and realised that there are “movers”, meaning brands that have gained popularity over time, as well as ones that have lost popularity. For example, a hotel group that sold their most popular and elegant property may experience a decrease in brand power as a result.

    Indicative of this is the fact that the biggest movers* this year – compared to 2022 – out of the top 20 brands in Mykonos are Paradise Beach Resort (+44.71%), Saint John Hotel Villas & Spa (+36.64%) and Anax Resort and Spa (+35.67%). On the contrary, some of the top brands that were mentioned earlier, like Cavo Tagoo Mykonos, Nammos Mykonos, and Bill & Coo Suites and Lounge, are showing a decline in popularity as it is evident in the following table.

    Another example of a hotel that has experienced a significant increase in brand power is Mykonos Ammos, located in Ornos Beach. This hotel gained 17 positions in one month in the top hotels list after appearing in a popular TV show on CBS in the USA, in April 2022. This is a testament to the power of exposure and media coverage in boosting a hotel’s brand power.

    On the other hand, spending on digital marketing can also have a significant impact on a hotel’s brand power. Brand awareness campaigns through social media, YouTube videos, display advertising, and other exposure can help increase a hotel’s visibility and popularity. Taking into account the movers mentioned earlier, as well as other brands that do not appear in the list above, such as Mykonos Riviera and Kensho, we can easily understand that with the right tools and the right people, dynamic commercial enterprises can be built.

    Heritage brands in the hospitality industry of Mykonos

    One interesting observation we made during our research is that hotels with a long-standing history and many years in business tended to have a fairly good ranking, regardless of the quality of their digital presence. This is an important factor to consider in the power of a brand, as time can work as a marketing force in and of itself.

    This means that new hotels that appear high on the list, such as Branco Mykonos – which was established only one year ago and yet it appears amongst the top most popular brands in Mykonos – have greater momentum than others that gain position due to their history alone. On the other hand, Saint John Hotel Villas & Spa, which has been around a long time, witnessed a decrease in popularity compared to last year as we saw in an earlier chart.

    While digital marketing and a strong online presence are important, longevity and a history of quality service can also contribute significantly to a hotel’s brand power and success in the hospitality industry.

    Chains and Worldwide big brands

    We observed a phenomenon in our study that hotels belonging to a well-known chain or part of a hotel group, such as the Mykonos Blu – Grecotel Boutique Resort, have an advantage and extra boost in their brand power. However, it is essential to recognize that brand affiliation alone is not sufficient, as demonstrated by various examples in the industry. Therefore, businesses need to understand that having a strong brand is just the starting point, and they must also prioritize investments in effective marketing and advertising strategies to fully maximize the potential impact of their brand.

    Why is strong branding essential?

    Success in a highly competitive market requires a combination of strategic planning, marketing expertise, and strong branding. It is essential to stay up-to-date with changing trends and consumer preferences while focusing on providing quality service and building a reputation that will stand the test of time. Ultimately, the success of a brand is a reflection of the efforts and expertise of the people behind it.

    Speaking from the perspective of sales and hotel revenue management, a strong brand is critical. In a hypothetical scenario where all hotels had the same price, the hotels on the list above would fill up in the order they appear. However, there are additional parameters to consider, such as demand and popularity in relation to the number of rooms. Smaller hotels may have an advantage over larger hotels in terms of pricing if the demand is the same but with less supply. This means that they can sell at higher prices. By taking into account these factors, hotels and businesses in the hospitality industry should strategically work to build and maintain a strong brand that can lead to increased revenue and profitability.

    One note is that the shift in rankings towards the bottom of the list is much easier than at the top. That is to say, it takes much more effort to move from position 4 to position 2, for example, than it does to move from position 200 to 100. This is because the higher a hotel is on the list, the more popular and established it is, and the harder it is to displace it. Conversely, the lower a hotel is on the list, the less established it is and the more room there is for growth and improvement.

    Conclusion

    In conclusion, building a strong brand takes time and effort, but the benefits are well worth it in the highly competitive hospitality market. By taking into account these factors, hotels and businesses in the hospitality industry in Mykonos can strategically work to build and maintain a strong brand that can lead to increased revenue and profitability by leveraging the power of social media, digital marketing, media coverage, and exposure.
    The study reveals that strong branding is an essential factor for success in the hospitality industry. Brands that have a significant presence on social media platforms such as Instagram (i.e. Cavo Tagoo) have been seen to top the list, while Bill & Coo Suites and Lounge and Branco Mykonos also present excellent examples of leveraging digital marketing in order to build a strong brand. The research also shows that hotels with a long-standing history and years of experience tend to have a good ranking, regardless of the quality of their digital presence; this is a testament to the power of longevity and a history of quality service, which can significantly contribute to a business’ brand power and success in the hospitality industry.
    Our approach also allowed us to gain insights into consumer preferences and behaviour, enabling us to provide our clients with strategic recommendations on how to improve their branding and overall business performance. In terms of sales and hotel revenue management, a strong brand is crucial as it leads to increased brand awareness, customer loyalty, and a competitive edge in the market.