christine bang
Loyalty Program Membership, Contribution, Liability, and Costs Continue to Grow
CBRE Hotels | November 4, 2024
By Rachael Rothman CFA, ISHC, Robert Mandelbaum, and Christine Bang Strong loyalty programs help hotel brands lower customer acquisition costs, increase direct-to-consumer access, and offset occupancy shortfalls during shoulder periods and weaker economic conditions. After analyzing publicly available data from five large hotel companies, we found that while growth in several key metrics slowed in 2023, loyalty members' overall contribution to occupancy increased, though marginal contribution per member contracted. Benefits The average number of loyalty program members at the subject five companies increased 11.3% in 2023, slower tha...
AI’s Impact on Hotels
CBRE | July 18, 2024
By Rachael Rothman, Jack Corgel, and Christine Bang Artificial Intelligence (AI) and technology enhancements for hotels promise enhanced customer service, higher margins and expanded research and booking, with improved experiences for guests. Of equal importance is the likelihood that AI and broader technology improvements will materially shift the relationship between hotel brands, third-party management companies and hotel owners, as well as the relationship between the online travel agents (OTAs), metasearch platforms and the brands, owners and managers. Key Takeaways Potential implications of artificial intelligence and technology en...
Hotel Loyalty Programs: Betting on the Law of Large Numbers
CBRE | July 15, 2024
Executive Summary Despite 5% growth in global room count last year for the five public hotel companies we analyzed for this report, an 11% increase in hotel loyalty program members resulted in a 2.5-percentage-point (pp) increase in total hotel occupancy attributable to loyalty member bookings. Loyalty programs are becoming less dominated by frequent travelers. Heavy users (30+ nights a year) comprise a declining percentage of total membership as the earning of loyalty points has become more tied with credit cards and affiliate programs and less directly with just frequent travelers. Loyalty program redemption revenues increased by...
Guest Loyalty Programs Provide, But They Cost
Robert Mandelbaum, Christine Bang | September 5, 2023
By Robert Mandelbaum and Christine Bang Over the years, the fees hotel owners pay to franchise companies have typically grown at a pace greater than the rise in hotel rooms revenue. Most franchise-related fees are charged as a percent of rooms revenue, and therefore, by assessing the relative changes in rooms revenue and franchise fees we can make some assumptions. In 2021, acknowledging the financial stress hotel owners faced during the pandemic, the franchise companies were sympathetic and provided some reprieve. While rooms revenue increased by 55.4% in 2021, total franchise-related fees rose by just 45.9%. Equilibrium returned in ...
