Global Hotel Alliance (GHA) reports that overall room-revenue produced by its DISCOVERY loyalty program members increased 9% to US$1.51 billion, of which cross-brand revenue (i. e. revenue produced by members who enrolled at one brand and then stayed at another) grew 21% to exceed US$100 million for the first time.
In the best performing hotels, the DISCOVERY program is now producing more than half of total room-nights sold and adding up to 7% in incremental occupancy from cross-brand customers. Over half a million cross-brand room-nights were generated in total.
The rise in revenues was driven largely by a further 25% growth in DISCOVERY membership, which reached 11.3 million members by the end of 2017. Over 5 million members reside in North America, but there was notable growth in Asia to 1.8 million, Europe to 1.9 million and a surge in membership in Australia and New Zealand, to over one million members.
Elite tier customers (DISCOVERY Black and Platinum-level members) represent only 3% of the database, but in 2017 produced 28% of revenues or over US$400 million.
GHA’s CEO, Chris Hartley believes these results show the value of the alliance model, observing: “The performance of the DISCOVERY program in 2017 clearly demonstrates once again how the power of collaboration helps maintain a healthy independent sector, as our smaller hotel brands challenge the might of the ever-consolidating mega-groups and OTAs. Consolidating member data from more than 35 brands in the alliance and a powerful CRM, means that our member brands can reach more customers at a far lower cost of distribution than they can alone.”
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