Skift Take
Although there are seismic shifts in Leading Hotels' business caused by changing consumer behavior, marketing trends and booking habits, Teng is not concerned with major chains' entrance into the sector. He believes that his and similar organizations offer a specialty product that cannot be recreated for the masses.
Editor’s Note: This interview is part of Skift's CEO interview series. This series is with hospitality CEOs talking about the Future of the Guest Experience and the evolving expectations and demands of hotel guests. Check out all the interviews as they come out here. Also, enjoy the previous series on the Future of Travel Booking, with online travel CEOs.
In the vast space between the independent hotel and the big brand sit multiple hospitality consortia and organizations that have some of the same marketing and promotional functions as the big operators while also staying focused on the unique properties that make up their portfolios.
And as brands get bigger and online travel agencies offer nearly everything, this segment is growing as hotels and groups seek to find a new way to group like-minded properties around the world. Just this week National Geographic entered the market with its Unique Lodges concept. It joins a field that contains both old-school marketing operations and digital savvy organizations.
The Leading Hotels of the World is one of the largest luxury hospitality collections worldwide with more than 430 hotels and resorts in more than 80 countries. The company was founded in 1928 with 38 member hotels across Europe, Egypt and Israel.
What started as a reservations service for independent hotels has evolved into a full-service organization that includes sales, marketing, financial services, and inspections. The company remains 100 percent owned by its members, putting it somewhere between a cooperative and company with services for hire.
Leading Hotels of the World and similar organizations, including Small Luxury Hotels and Relais & Chateaux, differ from hotel chains like Marriott International or Hilton Worldwide for a number of factors, including ownership models, pay structures, and branding.
These international chains, however, are now investing in independent hotel collections of their own, driven by consumer demand for more boutique, local hospitality experiences. Starwood launched the Luxury Collection in 1998 through its acquisition of Sheraton, Marriott launched the Autograph Collection in 2010, and Hilton Worldwide launched the Curio Collection in June 2014.
Skift recently spoke to Leading Hotels president and CEO Ted Teng about the business model behind the independent hotel collection, changing consumer habits and behavior, marketing trends, and increased competition from chain brands. An edi
