Getty Images more than 14 million new members in 2018 , Kenny says . And new enrollments jumped 27 % year over year during the first quarter , pushing the total to more than 89 million participants . Those members drive more than 60 % of occupancy systemwide . According to Kalibri , the industry range of contribution from loyalty members ranges from 40 % to 60 %.
EXPOSURE Andrea Grigg , managing director of strategic advisory and asset management for JLL ’ s North American portfolio , says Marriott ’ s launch of the Bonvoy loyalty program has helped drive more direct bookings , and the company ’ s revenue management system has been more efficient at managing inventory . She also sees signs of hope in Marriott ’ s recent agreement with Expedia , which gives owners more leeway to decide what inventory to make available to the OTA and reportedly resulted in reduced commissions .
Exposure matters as well . Choice Hotels , which has invested heavily in its Choice Privileges loyalty program and making its website and dedicated app user-friendly , is also hedging its bets by aligning with Google . Book on Google allows travelers to seamlessly search and book Choice brands without leaving the platform .
“ Google is where a large contingency of customers begin their search , so we see this as a win-win for guests and our franchisees .
Additionally , a hotel reservation on Book on Google reaps the same benefits as a reservation on ChoiceHotels . com ,” says Robert McDowell , the company ’ s chief commercial officer .
One-stop shopping isn ’ t for everyone , though . Max Starkov , founder and director of NextGuest Digital , a New York-based digital hospitality marketing and technology agency , says hoteliers need to understand that travel consumers visit an average of 18 websites via multiple devices over eight sessions before pulling the trigger on a hotel , according to Google research . That digital journey represents a series of interconnected stages : dreaming ,
“ THERE IS NO QUESTION THAT THE PACE AT WHICH DIRECT CHANNELS HAVE GROWN HAS BEEN A LOT FASTER THAN THE GROWTH FOR THIRD-PARTY BOOKINGS .”
CINDY ESTIS GREEN , CEO , KALIBRI LABS
planning , booking , experiencing and sharing .
“ The major players are engaging the travel consumer in all five phases ,” Starkov says . “ As a result , today the major brands are getting around 25 % of their roomnights from intermediaries — OTAs , travel management companies , traditional travel agencies , wholesalers , bed banks and tour operators — exactly the same percentage intermediaries contributed back in 1995 in the pre-OTA era .”
Independent operators , on the other hand , have grown more reliant on OTAs . Starkov estimates that some smaller operators count on OTAs for 50 % to 70 % of their roomnights . He blames that high figure in part on failure to embrace technology . Overall , OTAs alone drive a relatively minor share of business .
“ Everything makes them out to be such a big thing , and in a couple of markets they play a bigger role , but they are only about 15 % of overall U . S . hotel demand ,” Green says . In other parts of the world , where distribution is more fragmented , that figure is higher — about 30 % in Europe , for example .
The influence of OTAs remains a concern across the board , however . They play an important role in keeping rooms filled , Grigg observes , “ but that relationship has to work both ways and not continue to penalize us .”
52 hotelsmag . com September 2019