Independence at Scale: Paradox or Opportunity?

Independence at Scale: Paradox or Opportunity?

The Decision Brief Chris Hartley, CEO, Global Hotel Alliance Kristi Gole, SVP Marketing & Loyalty, Global Hotel Alliance Moderated by Carolyn Kremins, President, Skift Sponsored by Global Hotel Alliance THE VERDICT Independent hotel brands don’t necessarily have to choose between remaining independent and gaining the benefits of scale. Hartley argued that collaboration can give smaller brands access to loyalty, distribution, and international customers at a lower cost than joining a major hotel group, while Gole positioned loyalty as the connective tissue: a way to drive direct bookings, collect first-party data, and recognize customers without making the hotels themselves feel interchangeable. PATHS FORWARD Use loyalty to strengthen the economics of independence. According to a recent GHA survey, eight in 10 CEOs said loyalty will be critical or very important over the next three years. Gole said loyalty gives customers another reason to choose a hotel and book through lower-cost direct channels, while also creating the first-party data needed for better marketing, personalization, and recognition. Follow the airline alliances model. Hartley said GHA is designed the way airline alliances were “to create a collaborative platform” where independents pool customers and share distribution at lower cost. Treat collaboration as an alternative to consolidation. Hartley acknowledged that large hotel groups can drive substantial business through their loyalty platforms, but argued that independent operators should also consider the cost of accessing that scale. He said GHA now brings together nearly 40 million customers, can contribute roughly 30% to 35% of occupancy across its network, and delivers its loyalty platform at about one-third of the cost of major brands. Prepare for AI discovery collectively. Gole said 90% of GHA CEOs see AI agents as positive for the industry. She said independents are figuring out AEO and GEO together through the alliance. Scale matters in AI discovery. Independents that try to go it alone may not show up at all. WHAT TO WATCH The pressure on independent brands is unlikely to ease. Hartley said many locally strong operators still depend heavily on third-party distribution for international demand, while the largest hotel groups continue to use powerful loyalty platforms to drive bookings. GHA’s model will therefore be tested on whether collaboration can keep delivering enough customer reach and lower-cost distribution to remain a credible alternative to consolidation. AI adds another layer to that question. Hotels may increasingly lose control of the discovery interface as travelers turn to AI assistants, but that could make brand distinctiveness and the on-property experience more valuable. The competitive advantage for independents may ultimately depend on whether they can combine shared technology and customer infrastructure with an experience that still feels unmistakably local. Access all the Skift Takeaways from this event, as well as full session videos, presentation documents, and more editorial coverage at our Skift Global Forum attendees hub.

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