Global Hotel Alliance: Strategy Discovery Moving East

Abstract

The Global Hotel Alliance (GHA) is the largest hotel alliance in the world; however, their presence is currently the strongest in their traditional markets in Europe. With the increasing growth of tourism in the East – that is, the Middle East, Asia and Australasia – the GHA is now planning to intensify their presence and strengthen their position in these markets. Initially the decision point of this case is outlined, highlighting the aim of the GHA of intensifying their presence in the East. Next, the background of GHA, including its history and development, outlining the company brands and their global distribution is presented, before highlighting the GHA business structure. The DISCOVERY rewards program is then explained by providing an overview of the program, explaining how it works, and how it differs from the rewards programs of other hotels and hotel alliances. A competitor analysis is then presented, which highlights the similarities and differences between the GHA and its competitors, in particular other alliances in the luxury hotel segment. Finally, two strategic challenges that the GHA has faced are presented, outlining the nature of the challenge, the solution to the challenge, and finally the benefits that have arisen from taking action before concluding the case. The future strategy of GHA will require careful decisions about its positioning in the global luxury hotel industry. To what extend and how should it refocus on growth in the East?