In today’s competitive hospitality industry, independent hotel owners must find cost-effective ways to reach customers and compete with larger chains. Global Hotel Alliance (GHA), a collection of 40 independent hotel brands with over 800 hotels in 100 countries, helps hotels enhance profitability and meet these challenges. GHA assists hotels in optimizing their distribution strategies, reducing their dependence on expensive third-party channels, and achieving a more cost-effective approach to customer acquisition. By leveraging GHA’s aggregated customer data and loyalty programs, independent hotel brands can access new markets, reduce distribution costs, and increase direct bookings.
GHA CEO, Chris Hartley, emphasizes the importance of maintaining a presence across multiple third-party channels to drive new customer acquisition, as well as the challenges of high commissions paid to online travel agencies (OTAs) for independent brands. He highlights the need for a balanced distribution strategy that includes direct bookings, partnerships, and third-party channels. By steering customers towards lower-cost booking channels, such as direct channels and GHA’s website and app, independent hotel brands can save significantly on distribution costs and increase profitability.
GHA’s loyalty program, GHA Discovery, offers a wide choice of hotels to its now 28 million members, with a common currency called Discovery Dollars (D$) that allows customers to earn and redeem rewards across the alliance. The program’s simplicity, transparency, and growing network of partnerships, including luxury names like Regent Seven Seas Cruises and Plum Guide, make it attractive to customers and beneficial for hotel brands. By providing access to new markets and customer bases, GHA Discovery helps independent hotel brands increase occupancy rates and average daily rates (ADRs).
Managing technology and distribution is a complex and costly area for independent hotel brands, which is why GHA partners with Oracle to streamline technology costs through a central platform that interfaces multiple brands. GHA also offers best practice groups to advise hotels on suitable technologies, pricing, and compatibility, creating significant cost savings for smaller brands. By assisting hotels in assessing strategic investments, choosing the right technology, and managing costs, GHA helps independent brands keep up with technological advancements without breaking the bank.
GHA’s core principles have remained constant over the past 20 years, providing smaller hotel brands with the scale and expertise of a larger alliance while allowing them to retain their independence. Despite challenges from the evolving hospitality landscape, including the growth of OTAs and the expansion of hotel loyalty programs, GHA continues to advocate for collaboration among independent hotel brands. By focusing on aligned interests and providing a platform for independent brands to thrive in a competitive market, GHA aims to support independent hotel owners and operators in maintaining their autonomy and achieving success.
In conclusion, Global Hotel Alliance offers independent hotel brands the tools and resources they need to compete in the hospitality industry, reduce distribution costs, and increase profitability. Through its loyalty program, technology partnerships, and advocacy for collaboration, GHA helps independent hotel brands navigate the challenges of the competitive landscape and maintain their independence while achieving growth and success.
