Mixing brands and politics is not usually a good idea. So what happens when a brand is also a presidential candidate? We wanted to take a look at Trump’s travel and lifestyle brands and see how they’ve been affected by his candidacy. Will there be Trump brand damage? Or will everything end up okay?
The most recent news about Trump Hotels is that they are going to be launching a new brand that does not bear the Trump name. Targeted at millennial consumers, Scion Hotels will be more of a lifestyle brand than a luxury brand. Whether the name change is due to falling sales associated with the Trump brand or the new target audience is unclear, but the former is certainly suggested in a recent Travel + Leisure article.
This speculation is about a brand that hasn’t even launched yet. What about Trump’s current brands? Is his controversial campaign affecting his other hotels and properties?
While the greatest decreases in Trump Hotel traffic have been seen in “blue states” or primarily democratic states, foot traffic overall is down 19 percent when comparing September 2014 to September of this year. Properties in areas like Miami and Las Vegas have not seen this kind of dip.
In addition to the drop in guests, there have also been protests against his name in other forms. According to the L.A. Times, some Trump property residents lie about where they live to avoid the embarrassment of association, while passersby throw eggs at the windows or even leave excrement on the pavement in front. Some simply photograph themselves giving the property the finger and post it on social media sites.
Performance of Trump’s international assets has been questionable as well — particularly his Scottish Golf Courses. Both Trump International Golf Club Scotland Limited and The Turnberry golf resort have reported losses in recent filings. In Ireland, he faces great opposition to a rock wall he is trying to build to protect his Doonbeg Golf Course by the ocean. Surfers and environmentalists are petitioning against Trump so they can save the beach area, which could potentially disappear over time. While we don’t have a recent revenue report for Doonbeg, we can only hope that they have recovered from their revenue loss reported last year.
Why does Trump’s presidential persona affect his business brand? Because voters are consumers. They equate “Trump for President” with “Trump the Brand.” Election Day is two weeks away, and Candidate Trump will be able to breathe a sigh of relief regardless of the outcome. But his brands may be affected for years to come. Only time will tell if there is significant brand damage because of Trump’s often negatively perceived campaign.
Regardless of your politics, what do you think? How will Trump’s brands be affected after November 8?