Big hotel groups accused of bullying independent hotels

Loyalty programs such as Bonvoy, World of Hyatt, Hilton Honors, Accor Live Limitless, and Wyndham Rewards are popular among frequent travellers. Picture: Armand Hough/Independent Media

Loyalty programs such as Bonvoy, World of Hyatt, Hilton Honors, Accor Live Limitless, and Wyndham Rewards are popular among frequent travellers. Picture: Armand Hough/Independent Media

Published Aug 14, 2024

Share

The World Tourism Network (WTN), representing the interests of small and medium travel and tourism stakeholders, has raised concerns over the practices of major hotel chains like Marriott, Hyatt, Hilton, Wyndham, and Accor.

These hotel groups are being urged not to exploit their size and market dominance by denying guests, travel agencies, home-based travel advisors, tour operators, and meeting planners the ability to earn loyalty points and stay credits when bookings are made through third-party providers.

Loyalty programs such as Bonvoy, World of Hyatt, Hilton Honors, Accor Live Limitless, and Wyndham Rewards are popular among frequent travellers, who rely on them to gain status and enjoy perks.

For instance, staying over 60 nights a year can earn a traveller Hyatt Globalist status, which includes benefits like free breakfast, no resort fees, lounge access, suite upgrades, and bonus points.

However, these programs often seem designed to discourage the use of travel agencies, tour operators, or event organisers by withholding points when bookings are made through these channels.

This has led to criticism from the WTN, whose Chairman, Juergen Steinmetz, argues that this practice is unfair. He is urging travel agency and tour operator members to reconsider booking clients into hotels affiliated with Marriott, Hyatt, Hilton, Wyndham, and Accor Live Limitless.

Steinmetz states, “Agencies that book clients in such large hotel groups may most likely lose such clients for repeat business, once clients realise they won’t get points in these popular loyalty programs”.

A significant number of travellers continue to book packages and hotel stays through agencies. Steinmetz believes that a boycott by "third-party booking agents" against these hotel chains could have an immediate impact and potentially push the companies to rethink their policies.

The stance of these hotel giants is clear—they do not value bookings made through agencies, aiming instead to encourage direct bookings in the future, effectively cutting out the agency.

Business clients who book events through an organiser at these hotels are likely to forfeit their loyalty program benefits and points.

Often, travel planners and guests are unaware of these policies, leading to strained relationships between the hotels and their frequent guests, as well as between agencies and their clients.

This is particularly damaging for small and medium-sized enterprises and home-based agencies, whose ability to retain clients and stay in business could be at risk.

Steinmetz emphasises that even if agencies tolerate such practices or offer discounted package rates, consumers should still receive stay credits to help them achieve their loyalty status tiers.

The WTN’s advocacy committee sees this situation as an opportunity to support independent hotels and encourages its 23,000+ members across 133 countries to do the same.

Reflecting on the situation, Steinmetz notes, “We’ve seen when airlines eliminated commissions. Marriott, Hyatt, Hilton, Wyndham, and Accor are taking this discrimination a step further and openly punishing consumers for selecting a third-party channel when booking travel”.

Despite numerous complaints from guests, the hotels have not responded, and sales agents and front desk managers have acknowledged that corporate policies remain unchanged.

IOL Travel