Running a loyalty program can be an expensive proposition – not just because of the cost of rewarding customers (the rebate value) but simply because setting it up requires technology investment from database to consumer front end to integration with employee workflow. A small business may not be able to do it in an effective way, because:

• The costs are too high to amortize across a limited amount of business
  
• And without scale to meet a customer’s needs everywhere, it’s hard to keep them loyal – a loyalty program might tip them over the edge to choose your business when it’s an option, but it first has to be an option.

For smaller businesses a coalition loyalty program may be a good solution. These have worked well in many parts of the world. In the U.S. they haven’t succeeded (Cf. American Express Plenti, but there I blame poor execution, like wanting consumers to photograph and upload receipts).

In the hotel space there’s Marriott, Hyatt, IHG, and Hilton (and more). Participating hotels may be a part of that chain, but the chains don’t own most of those hotels. They pay fees for access to customers and in some cases management fees, too.

Hyatt has been especially aggressive in signing up partners outside of hotels with management or franchise agreements, first with MGM Resorts (though Marriott will be partnering with them instead starting next year) and now with SLH Hotels and more. Those companies enter into a coalition of sorts with Hyatt. Other chains have made similar moves.

GHA Discovery isn’t a hotel chain or management program. But it is a hotel loyalty program, a coalition program, that serves as the loyalty platform across 40 smaller hotel chains.

Participating brands include Anantara; Viceroy; Sukhothai; Parkroyal; Pan Pacific; Outrigger; NH Hotels; Marco Polo Hotels; The Leela; and Kempinski.

They have a smaller footprint in the U.S. (especially once Omni left to go it alone) – just 14 hotels – but they’re order of magnitude 800 hotels across 100 countries which is a total not far behind Hyatt.

Two years ago GHA, the Global Hotel Alliance, completely relaunched their program.

• They used to be experienced-based, with no points
  
• They introduced an earning and redemption currency – even if members prefer experiences, they no longer have to give up the points they’d earn somewhere else to stay at a GHA-participating property
  
• And made elite status easier to earn, with top-tier Titanium available after 30 nights or $15,000 spend or 3 brands (you can actually earn top tier elite status after just 3 nights if you did it at 3 different brands in the group). Benefits naturally include bonus points, upgrades, and early and late check-out.
  
• They’re also reportedly good about status matches if you’ve stayed at least a single night at one of their hotels recently.

And they seem to be doing really well – their third quarter numbers are impressive.

• 25 million members. I believe they were at 20 million members a year and a half ago with the addition of NH Hotels. There were 46% more signups in the third quarter than in the third quarter of 2022.
  
• Delivering guests from one brand to another. Discovery members stick with the program across brands, with a 55% increase year-over-year in revenue ($79 million in the third quarter) from guests who came in with one brand staying at another.
  
• At scale year-to-date revenue of $1.7 billion (double comparable 2022 period) with room nights up 31%
  
• Engaged members redemptions up 90%, somewhat expected with a new program as more members hit meaningful account balances to redeem.

In general I find that the best execution on loyalty comes from:

• Smaller programs they have to deliver more to the customer to get them to stay loyalty, it’s easy to stick with Marriott or Hilton but takes effort to stay with a chain that has a smaller footprint
  
• Premium brands where there’s higher room revenue and margins to invest in loyalty, and where there’s a greater payoff to the incremental business
  
• Owned hotels because it’s easier to integrate the program and ensure consistent benefits delivery. Franchise hotels value the customers delivered by a brand, but have an incentive to free ride rather than contribute back to the brand.

GHA has the benefit of being smaller and in many (though not all) cases premium, but a coalition loyalty program is even a step removed from a franchise. They seem to be doing a great job though – and provide a variety of experiences around Europe and Asia.

Two GHA Executives Receive A Freddie Award, Voted By Members As Best Up And Coming Program In 2022 and 2023

I admit I always want to consider a GHA Discovery property. As a top tier Hyatt elite for around 15 years, and a Marriott lifetime Platinum, it’s often hard. In many cities where I’d want to stay at their hotels, the properties are just too nice for me (outside my budget when I’m out of pocket on personal stays).