Magnuson Hotels’ STAR Club shatters online reservation fees, increases affiliate revenue.
October 27, 2009
SPOKANE, WA — Magnuson Hotels, the world’s largest independent hotel group, announced today a significant reduction in online reservation fees paid by its 1,000 hotel affiliates with the successful global distribution launch of STAR Club.
Magnuson Hotels’ STAR Club offers consumers the best hotel rates available online. By enrolling at http://www.magnusonhotels.com/Star-Club guests obtain a promotional code which guarantees private access to lowest rates at every Magnuson Hotel, 365 days a year.
STAR Club is the latest Magnuson Hotels initiative to drive global distribution direct to hotel owners, bypassing the fees, charges and conditions of third party online channels and travel agencies. Year-to-date, direct reservations booked through Magnuson’s worldwide system have doubled to nearly one-third of its total distribution.
While traditional franchise chains offer guest incentive programs designed to encourage brand loyalty, the cost of managing these programs is financed by frequent traveler assessments to hotel franchisees; fees usually range from 2 to 6% of reservation revenue. For a 100-room midscale hotel at 65% occupancy, the cost for a franchised hotel to maintain its frequent guest program could add up to over $100,000 per year. Magnuson’s STAR Club has no cost to hotel owners affiliating with Magnuson Hotels.
“STAR Club gives people what they want,” stated Thomas R. Magnuson, Magnuson Hotels CEO. “During times of job losses and economic crisis, travelers are not looking for free prizes. Travelers are looking for a clear promise of value–the lowest rate everywhere everyday with no gimmicks. Magnuson Hotels is committed to using every power possible to help owners make it through the crash by increasing revenue and decreasing costs.”
About Magnuson Hotels, the fastest growing hotel chain in history.
In only seven years, Magnuson Hotels headquartered in Spokane, WA has become the world’s largest independent hotel group, representing nearly 1500 hotels and a combined affiliate base with assets in excess of $5.5 Billion. One of the top 10 global hotel chains, Magnuson Hotels was the #1 Hotel Company of Inc. Magazine’s 2009 annual ranking of the 5,000 fastest growing privately owned U.S. companies. With a four year reservation sales growth of 595%, Magnuson Hotels is listed in the top 100 U.S. business services companies.