Skift Take
Today’s podcast looks at Hyattâs purchased of Standard, what new loyalty branding deals look like, and Shakiraâs role pitching Despegar.
Good morning from Skift. Itâs Wednesday, August 21, 2024, and hereâs what you need to know about the business of travel today.
Listen Now
ð§ Subscribe
Apple Podcasts | Spotify | YouTube | RSS
Episode Notes
Hyatt announced plans on Tuesday to buy the five brands owned by Standard International, reports Senior Hospitality Editor Sean OâNeill.
Hyatt will pay $150 million upfront, with up to an additional $185 million over time as more properties join its portfolio. Hyatt wonât acquire any physical assets in the deal, but it is buying the management, franchise and license contracts for hotels with roughly 2,000 rooms. Hyatt and Standard International expect the deal to close this year, subject to approvals.
Next, Marriott International and Sonder Holdings announced this week they had signed a 20-year strategic licensing deal that enables members of Marriottâs loyalty program to earn points at any Sonder property. OâNeill lists 10 things to know about the growing trend of loyalty licensing tie-ups.
Although the past year has seen several new loyalty licensing deals, OâNeill notes those partnerships are far from a novel concept. IHG signed a license agreement with Las Vegas Sands in 2010. Hotels also see loyalty licensing deals as part of their plan to show an increase in room growth.
In addition, major hotel groups have viewed loyalty licensing deals as a way to enter difficult-to-access markets â such as Las Vegas. Loyalty partnerships enable hotel groups to give guests access and allow gaming resorts to take advantage of hotel groupsâ cost advantages in marketing and distribution.
Finally, Despegar, Latin Americaâs largest online travel agency, is teaming up with pop star Shakira for upcoming marketing campaigns, reports Executive Editor Dennis Schaal.
A Despegar spokesperson said the Colombia-born singer will be featured in reels and full-length videos on the companyâs YouTube channel and social media accounts. Shakira will also appear on billboards across several Latin American cities. Schaal notes Despegarâs first campaign with Shakira is still under development.
