Marriott is on the path of rapid global expansion
Tuesday, 21st May 2024
Source : Max Starkov

Judging by the robust pipeline of Marriott, the process of 'branditization' of the hospitality industry is accelerating even further.

Already 73% of hotel rooms in the U.S. belong to branded hotels, 27% to independents. Branded vs independent hotel room ratio in the UK is 50:50, 45% in Europe, 50:50 in APAC.

The question is why?

Independents have emerged from the pandemic weakened, without resources to update their tech stack to appease the tech-savvy travel consumers, equip employees with tech tools, and invest in digital marketing to decrease their over-dependence on OTAs which INCREASED their share at the expense of direct bookings.

While for the major hotel chains the ratio direct online vs OTAs bookings is on average 4:1, for independents this ratio is 1:4 in the U.S. and 1:5 for European independents.

Did I mention that on average independents pay 2x-2.5x higher OTA commission on top of the 4x-5x greater dependence on the OTAs?

In addition, labor shortages and unsustainable labor costs are forcing hoteliers to introduce technology solutions to decrease the need for human-provided services.

Independents simply do not have the resources to invest adequately in talent, technology and digital marketing.

Max Starkov
Hospitality & Online Travel Tech Consultant & Strategist

Follow Max

 Latest News  (Click title to read article)

 Latest Articles  (Click title to read)

 Most Read Articles  (Click title to read)

~ Important Notice ~
Articles appearing on 4Hoteliers contain copyright material. They are meant for your personal use and may not be reproduced or redistributed. While 4Hoteliers makes every effort to ensure accuracy, we can not be held responsible for the content nor the views expressed, which may not necessarily be those of either the original author or 4Hoteliers or its agents.
© Copyright 4Hoteliers 2001-2024 ~ unless stated otherwise, all rights reserved.
You can read more about 4Hoteliers and our company here
Use of this web site is subject to our
terms & conditions of service and privacy policy