Hotel groups, including IHG and Marriott, are focusing on technology and loyalty programs to boost direct bookings and revenue.
IHG® Hotels & ResortsHotel groups, including IHG and Marriott, are focusing on technology and loyalty programs to boost direct bookings and revenue.
IHG Investments:
- IHG, parent of Holiday Inn, is enhancing its guest reservation system (GRS), developed with Amadeus since 2015. The system is driving upsell opportunities across its 6,000+ hotels, with average upsells of $40 in luxury properties and $20 in essential ones.
- The cloud-based revenue management system (RMS), already in 1,700 hotels, aims to optimize booking channels and pricing decisions using data science and AI. IHG plans to expand this to 4,000 hotels by 2024.
- IHG is also working on a new property management system (PMS), with pilots in the U.S., Europe, and some properties in China.
IHG One Rewards:
- Relaunched in 2022, IHG One Rewards has over 130 million members. Loyalty members spend 10% more per stay and are 20% more profitable for hotel owners compared to OTA guests.
- Membership penetration has grown, now accounting for over 60% of global room nights, with the Americas leading at nearly 70%.
- U.S. cardholders stay 85% more and spend 35% more than non-cardholders.
- Digital channels, including the mobile app, are driving growth, with IHG-managed channels now contributing 80% of room revenue.
Marriott’s Loyalty Growth:
- Marriott’s Bonvoy program has over 210 million members, with recent growth driven by partnerships in Latin America, Japan, and China.
- Member penetration of global room nights reached 71% in the U.S. and 65% globally in Q2 2024.
- Marriott is also upgrading its CRS, PMS, and loyalty platform to offer guests enhanced services beyond just booking rooms.
Source: IHG
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