Take Skift
Today’s podcast covers Hyatt’s acquisition of Standard, what new loyalty branding deals look like, and Shakira’s role in pitching Despegar.
Rashaad Jordan
Good morning from Skift. It’s Wednesday, August 21, 2024, and here’s everything you need to know about the travel business today.
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Episode Notes
Hyatt announced plans to buy Standard International’s five brands on Tuesday, reports Sean O’Neill, senior hospitality editor.
Hyatt will pay $150 million up front and can pay up to an additional $185 million over time as more hotels are added to the portfolio. Hyatt is not acquiring any physical assets as part of the deal, but is buying the management, franchise and licensing agreements for hotels with approximately 2,000 rooms. Hyatt and Standard International expect the deal to close later this year, subject to approvals.
Next, Marriott International and Sonder Holdings announced this week that they have signed a 20-year strategic licensing agreement that will allow Marriott loyalty program members to earn points at any Sonder hotel. O’Neill shares 10 things to know about the growing trend of loyalty licensing partnerships.
Although several new loyalty program licensing deals have been signed in the past year, O’Neill points out that these partnerships are far from new. IHG signed a licensing deal with Las Vegas Sands in 2010. Hotels are also looking at loyalty program licensing deals as part of their plan to book more rooms.
In addition, large hotel groups see loyalty licensing agreements as a way to penetrate hard-to-reach markets like Las Vegas. Loyalty partnerships allow hotel groups to provide access to their guests and allow gaming resorts to take advantage of hotel groups’ cost advantages in marketing and distribution.
Finally, Despegar, Latin America’s largest online travel agency, is collaborating with pop star Shakira for upcoming marketing campaigns, reports editor-in-chief Dennis Schaal.
A spokesperson for Despegar said the Colombian-born singer will be featured in reels and long-form videos on the company’s YouTube channel and social media accounts. Shakira will also be featured on billboards in several Latin American cities. Schaal notes that Despegar’s first campaign featuring Shakira is still in development.
