Operating purely independently leaves hoteliers heavily reliant on online travel agents, driving up commissions to 18-20 per cent, according to Global Hotel Alliance (GHA) CEO Chris Hartley.
Speaking to TTN Middle East, Hartley explained that traditional mega-brand franchises are becoming less appealing to asset owners because the "cost of sale being part of a franchise operation is quite significant". GHA provides an alternative ecosystem by pooling together 50 brands, 1,000 hotels, and 37 million customers on a shared loyalty platform, GHA Discovery.
"By collaborating, we can share a lot of the technology distribution, power sales that ultimately brought together on a loyalty platform that a big brand can offer, but it's on a collaborative basis," Hartley said, adding that GHA costs "maybe a third or a half of what a big brand franchise" charges.
The alliance's focus remains firmly on upscale and luxury local brands seeking international outreach. Recent additions include Marmara Hotels in Turkey and Kouros in Poland, alongside regional heavyweight Rotana. GHA has also secured a massive milestone in Japan by signing Tokyu Hotels, bringing 40-plus properties into the fold.
Hartley revealed that two-thirds of GHA’s revenue stems from international leisure demand - a stark contrast to major American chains that rely heavily on domestic, mid-scale travellers.
Despite regional macroeconomic challenges, GHA's performance indicators show robust momentum. Cross-brand bookings are up 25% this year, while direct bookings have surged by 38%. "Without giving individual numbers, I can say that despite the current situation in the region, we have actually outperformed the numbers we projected for Rotana in terms of gross revenue," Hartley confirmed.
Looking ahead, GHA is actively targeting untapped markets, aiming to mirror its 60-hotel presence in China with aggressive expansion into India and South Korea. "Korea is becoming very popular as a sort of alternative to Japan. So we'd love to have a presence in that market," Hartley noted, identifying several local Korean brands currently being discovered.
Concurrently, the alliance is shifting focus toward the travel trade by piloting corporate booker initiatives. "We are working on a number of initiatives that would use our discovery dollar currency to enable our bookers to an discovery dollars as a reward for booking our hotels," Hartley explained, highlighting an ongoing corporate pilot scheme via NH Hotels in Spain.
Hartley attributes GHA's ongoing growth to shifting traveller mindsets: "As the world's evolved, what's interesting about travel is it's become more experience focused. It's people actually looking for local experiences.”