With tens of thousands of locations worldwide, hotel chains like Hilton, Marriott, and Hyatt dominate the global hospitality industry. But as the video below shows, these companies often don’t own the properties that bear their names. This report from the Wall Street Journal explains how Marriott and others license their brands to independently operated hotels, who then benefit from widespread recognition as well as customer reward programs.
Questions:
- Why did hotel chains like Marriott and Hilton move away from owning properties and towards serving as “flags” for smaller operators?
- How do customer reward programs benefit both travelers and hotel operators?