How regional resorts navigate distribution deals with global hotel brands

Resorts that mix global brands’ distribution with third-party management models can lead to higher profitability margins, but navigating that relationship is often fraught

Each company in the partnership likely brings with it a distinct culture and management style, regardless of its size. Despite the reach of global hotel companies that can drive bookings from anywhere, smaller regional firms have invaluable perspective in that they know their markets like no one else.

Key takeaways

• Spanish resorts firm Iberostar Hotels & Resorts has a distribution agreement with IHG Hotels & Resorts hoping to grow its share of direct bookings in its distribution strategy;
• Iberostar's partnership with IHG has made the Spanish resort company more competitive. “We’re operators in a platform-based industry, so we require a balance between saving costs and delivering guest experiences. We cannot compete in loyalty with the big companies, but our partnership with IHG gives it space it did not have, particularly for the U.S. customer,” Iberostar said.

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