Travelers today face a dizzying array of hotel brands. But why the proliferation? And how exactly do these giant corporations manage such a vast network of properties?
May 14, 2024
The hotel industry is witnessing a period of consolidation. The top ten hotel chains – companies such as Marriott International, Hilton, the InterContinental Hotels Group (IHG), Hyatt and Accor – controlled a staggering 74.77% of the global market in 2022, according to Global Data, a leading data and analytics company.
Key takeaways
- This dominance allows them to leverage their brand recognition and loyalty programs to attract guests, squeezing out smaller, independent players;
- One key strategy the giants employ is brand proliferation. By offering a diverse range of brands catering to different budgets, travel styles and locations, they effectively capture a wider swathe of the market;
- This approach allows the big players to cater to a range of needs under one corporate umbrella. It also mitigates risk – if economic downturns impact luxury travel, budget options can still perform well.
Get the full story at GlobalData
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