IHG, Hilton Worldwide, Marriott, Wyndham Hotels… and the list goes on. The world’s leading hotel chains dominate the mainstream hotel market, but how have they done it and why are they so loved?
From Asset Heavy to Asset Light
The growth and prevalence of the global hotel chains is mainly a result of the strategic choice these hotel chains have made to break loose from an asset heavy model (based on owning hotels) to an asset light model (based on franchising). The franchise model has enabled these hotels to quickly sign existing and new properties and transform them into their brand. Franchisees benefit from the power of the brand name, marketing support (e.g reservations via the CRS channel) and know how (by accessing global revenue management strategies for example) and the hotel chain benefits from the extra brand exposure.
If done well, both benefits reinforce each other. (1) The hotel creates a good name, (2) hotel owners want to have the hotel chain name and brand on their property, (3) the hotel chain gains more exposure and reinforces its brands (4) more hotel owners become interested in become franchisees and so on and so forth.
Brand Segments and Standards
To attract the interest of franchisees and establish a reputable brand, hotel chains conduct extensive market research into travel consumer behaviour and build specific brands to meet specific market segments’ needs. To be consistent in the brand identity, they devise rigorous brand standards hotel franchisees need to comply with to provide guests with a similar experience no matter where they are. The idea is that If a guest loves the Doubletree by Hilton London Docklands, he will love the Doubletree by Hilton Jumeira Beach.
These brand standards enable hotels to have a consistent global presence, create trust in travel consumers and add value to the hotel chain and franchise partners.
World Ranking of Hotel Groups and Brands
The Top 5 Hotel Chains as per 2013 were IHG, Hilton Hotels, Marriott Hotels, Wyndham Hotel Group and Choice. Hotel Group rankings are usually based on the number of rooms. IHG, the number one hotel chain, for example, has 4602 hotels whilst Wyndham Hotels Group has 7342 hotels. So if the ranking was based on number of hotels, Wyndham Hotels Group would rank higher than IHG. However, because hotels sell rooms, the more rooms, the bigger the hotel chain is and IHG has the largest number of rooms with 675 982 rooms.
Opportunity for Travel Agents
Travel agents can tap into this enormous trust global hotel chains have managed to create in the travel consumer by offering these hotels to customers. To do this right, the travel agent needs to familiarise himself with the different brands and understand the different brand segments (e.g midscale and upscale brands, leisure and business brands, wellness brands et cetera).
When you understand the different brands of different chains, it will be a piece of cake to match your client’s travel interests and plans with a compelling and suitable hotel offer.
Travenza MAX Booking Platform features over 100,000 hotel properties in over 100 countries and has wide availability from global hotel chains. The booking platform enables travel agents to search by hotel name and star rating to make matching the right brand with the right customer as simple as 1,2,3!
Click HERE to Learn more about Travenza MAX Booking Platform for travel agents.
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