Magnuson says hotel franchise direct booking drive is “war profiteering” at franchisee expense
Magnuson referred to a recent study published by CBRE that says in self-managed and franchised hotels, the greatest share of franchise fees received was from hoteilers paying to use chain brands' frequent guest loyalty programs (30.7%).
Magnuson questioned the effectiveness of the initiative, adding that "While most of the major brands have made big news about direct booking campaigns, there has been a 40% drop in direct bookings in the last five years."
The panel was moderated by Andrew Sangster, Editorial Director, Hotel Analyst and also included Simon Teasdale, Managing Director, Lapithus Hotel Management and Geneviève Materne, Regional VP of Distribution Strategy, EAME SW Asia & Asia Pacific, Hyatt International.
About Magnuson Worldwide:
Since its launch fifteen years ago, Magnuson Worldwide has become America's fastest growing hotel brand and a top 15 global chain, marketing over 1,000 hotels across six countries and three continents. Magnuson Worlwide's newly formed distribution partnership with Chinese operator Jin Jiang Hotels and Europe's Louvre Hotels is the world's largest hotel alliance, forming a consortium of over 8,000 hotels and 800,000 rooms worldwide, equal to the size of a top 2 global hotel chain.