Skift Take
Hotel brands’ increased interest in the independent hotel market comes as consumer bookings and the number of actual small private hotel increases suggesting there’s enough business and options to go around for specialized consortia, global corporations, and the do-it-yourself traveler.
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.
Small Luxury Hotels of the World is certainly global, as its name would imply, but it's not really so small.
The hotel marketing consortium represents 520 small independent hotels across more than 80 countries. The organization differentiates its inventory by keeping properties to less than 50 rooms, maintaining a strong hold in the Asia market, and consistently tightening its inspection process and qualifications.
Skift recently spoke to Small Luxury Hotels of the World CEO Paul Kerr about changes in the independent hotel market and big brands' entrance into the sector.
Kerr is an optimistic executive. While he openly admits that major hotel groups have potential in this highly lucrative market, he says that he isn’t worried about the impact of their possible success, citing confidence in his own brand and a growing number of independent hotels looking to align themselves with larger marketing organizations.
He also talks about the ever-growing importance of technology in determining the winners and losers, even in a field as human as hospitality.
An edited version of the interview can be found below.
Skift: What are the benefits for an independent hotel that joins SLH? Why would they pay a fee to be a part of it?
Paul Kerr: They're basically joining a brand. An individual hotel would find it very difficult to market itself or get noticed in the international market.
SLH has a loyalty program of about 350,000 consumers, of which at least 10 percent or more are active depending on the month. Straight away, hotels are marketed to all of those consumers. The first part of that is through the website.
Secondly, SLH markets to all travel agents under the code LX for luxury. The travel agents then know about that particular hotel in a particular destination. That's two of the main benefits as far as booking is concerned. Hotels can also participate in marketing themselves and they can attend what we call road shows where we introduce them to all the travel agents.
We also produce the Inspired Magazine, which is printed twice a year and stays in all hotels. Weâ
