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preferred loyalty program .”
Hartley said that growth of the GHA , especially in the U . S ., where there are less independent players , could come through loyalty tie-ups with a major U . S . chain , “ whereby we could offer reciprocal recognition , plus earn and burn capability through some form of rewards exchange ,” he said .
There ’ s another reason behind partnerships : distribution , a major talking point in the hotel industry that involves online travel agencies and their vast marketing capabilities . The lowest reservation cost for hotel owners is through direct business and being able to market product through a larger company with further reach makes eminent sense . Likewise , travelers want optionality , a benefit of partnering with other brands . Hilton ’ s alignment with
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AutoCamp is an example that broadens a hotel company ’ s distribution while allowing a small emerging alternative lodging concept to tap into a large global and wellestablished loyalty program .
It is also why the hospitality industry continues to grow by shrinking . “ Consolidation endures in the lodging sector as expanding mass and distribution is key to remaining competitive ,” said Dan Lesser , co-founder , president and CEO of LW Hospitality Advisors . “ There are many independent brands or smaller collections of brands that can scale by leveraging large brand family loyalty platforms .”
MANAGING EXPECTATIONS Action on the partnership front isn ’ t limited to the major brand companies . It ’ s seeped into the third-party management space ,
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too . One of the most active companies to tap into this is Atlanta-based Hotel Equities , which has a portfolio of more than 250 hotels , a number it ’ s achieved through the use of strategic partnerships . In fact , “ Strategic Partnership ” is a prominent tab on the company ’ s website . When clicked , the explanation is : “ A strategic partnership with Hotel Equities provides a collaborative alliance focused on strong cultural alignment , driving exceptional performance and maximizing shared synergies ,” among other things , such as alignment of goals , values and vision , “ that optimize property portfolio performance , enhance guest experiences and unlock sustainable growth opportunities .”
To date , Hotel Equities has executed seven of these partnerships with Witness Investments , Coakley &
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WE OFTEN USE THE PHRASE 1 + 1 = 3 WITH THESE RELATIONSHIPS AND THAT ’ S BECAUSE WE ’ VE BEEN ABLE TO ACHIEVE GREATER OUTCOMES TOGETHER
– BRAD RAHINSKY , PRESIDENT
AND CEO OF HOTEL EQUITIES
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Hilton announced a partnership with AutoCamp in February . Shown here is AutoCamp Cape Cod . |
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July / August 2024 hotelsmag . com 27 |