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US firm targets UK independent hotels
Monday, 11 Mar, 2010
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A US company which claims to represent the largest number of independent hotels in the world is to establish a foothold in the UK.
Magnuson Hotels, established seven years ago by partners Tom and Melissa Magnuson, will officially launch in the UK from April 5.
The company is targeting approximately 10,000 non-aligned independent hotels of 12 or more rooms in the UK.
Magnuson claims to allow independent hoteliers to retain full control of their business, inventory and rates, while gaining from GDS representation, increased online presence and SEO activity without high cost commitments or long term contracts.
Membership is free, there is no long term contract and members retain the right to cancel membership at any time.
Members pay Magnuson a commission fee for each booking it delivers.
Tom Magnuson said: “What unites all these properties is that they are run by passionate, entrepreneurial people who have built up their businesses over many years, and not surprisingly they’re eager to maintain their independence.
“Many of these businesses will be at risk this year, mainly due to a fatal combination of declining sales, downward pressure on room rates and increased competition from their better-marketed large chain rivals.
“This is where we come in. Within just three weeks we can take a local hotel and make it global. Our mantra is simple: Hotels do not need a franchise brand to increase occupancy and rate.”
Magnuson hotels gain access to the group’s booking technology developed in-house. The system integrates front-office inventory management and yield control with a direct feed to thousands of distribution partners.
Whilst retaining control of their own rates and inventory, the full GDS distribution allows them to be seen by 650,000 travel agents worldwide, in addition to being featured on more than 2,000 internet booking channels from Travelocity and Expedia to Hotels.com, Priceline and many major airlines.
Magnuson clients show an average rank of sixth position across all search engine channels, the company claims.
Magnuson added: “Hotel brands are becoming less relevant to consumers.
“It is now estimated that less than 25% of consumers have any brand loyalty in their choice of travel companies; their hotel buying criteria are primarily based upon location, quality and price.
“We believe the hotelier is the best person to choose their location, determine their quality and establish the price, but what we can do is ensure their offering is seen by the largest audience possible.”
*See TravelMole guest comment
by Phil Davies
Phil Davies
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