Accommodation

Hotel chain offers incentives ‘to counteract sharing economy influx’

Posted by Phil Davies on
Hotel chain offers incentives ‘to counteract sharing economy influx’

The fastest growing hotel chain in the US is offering a range of incentives to encourage UK independent properties to join to counteract the influx of Airbnb and budget chains.

Magnuson Hotels is offering a series brand membership opportunities tailored for the UK hotel sector.

Five properties will have the opportunity to rebrand as a Magnuson Hotel without paying the customary 5% membership fee for the first year, as well as gaining access to a range of hotel marketing and revenue-boosting tools.

Affiliation with Magnuson includes membership in an international marketing alliance of more than 8,000 hotels and 800,000 rooms across 50 countries including distribution partnerships with Louvre Hotels Group in Europe and Jin Jiang Hotels, China’s largest hotel company.

Based on 15 years of opeerations in the US, Magnuson claims that the average 70-room UK hotel, operating at 70% occupancy and £70 average daily rate can see a three-year net profit increase of £624,654.

This is because Magnuson’s low-cost global brand and distribution marketing platform does not mandate expensive property improvement plans and provides a lucrative loyalty programme free-of-charge partnered with Amazon.com.

The free brand membership package includes a year of brand services, connection to the global reservation system, access to a personal revenue manager and a dedicated marketing fund to promote each hotel locally and globally.

Company chief executive, Thomas Magnuson, said: “UK hotel owners are facing some of the biggest challenges in generations.

“Airbnb now counts for 22% of total UK room supply and corporate giants like Travelodge and Premier Inn represent an additional 20%. In 2018, major brands will achieve a combined 51% market share in the UK.”

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