NEW YORK -- Two luxury hotel representation organizations, the
Leading Hotels of the World and Relais & Chateaux, formed a
partnership and will market nearly 800 properties worldwide to
travel agents.
"With all the acquisitions in the industry, this alliance
identifies, for the customer, two recognized names with each
other," said Paul McManus, president and chief executive officer of
Leading Hotels of the World.
"So many hotel companies advertise as having a five-star
business, but it's very contrived. This sends a clear message," he
said.
The companies have worldwide distribution, with particularly
heavy coverage in Europe.
"This hotel organization has lots of power," said McManus.
The new partners will cooperate under the umbrella of the
Leading Luxury Alliance, a recently launched collection of
luxury-oriented travel companies. The alliance has two other
partners, Virtuoso, a network of travel agents who serve the
upscale market, and Crystal Cruises.
Both organizations process their reservations through Pegasus
Solutions ,but joint bookings can only be made through either Web
site.
Customers visiting one organization's Web site can click on a
button to transfer to the other, and bookings can be made at both
places. The sites are www.lhw.com and www.relaischateaux.com.
Agents must continue to use the respective codes to book through
the CRS, but the company call centers will have a referral program
in place.
The meat of the LHW and Relais & Chateaux partnership will
be database marketing, not the combined inventory.
LHW and Relais & Chateaux have, according to McManus, a
database of approximately a half-million customers, once duplicates
are removed.
The partners also have a combined travel agent database, and
they will use this in their marketing efforts with agents. The two
parties will jointly organize and run showcases for travel agents
worldwide.
Richard Chambers, vice president of marketing at LHW, said the
alliance would be a boon for agents, because it would add "more
value to their buy."
Chambers, probably unnecessarily, said the alliance's high rates
would also benefit agents.
Relais & Chateaux represents 427 hotels and LHW serves 340
hotels.
Their portfolios are quite different, however, as LHW hotels are
mostly of the "Grande Dame," urban variety, according to McManus,
and the bulk of Relais & Chateaux properties are in the
countryside.
So while the properties may be different, their guests are
not.
"We determined it was the same customer doing different things,"
said Chambers.
Talks between the two organizations started in June, and McManus
said the short gestation period was indicative of the alliance's
natural power.
"When something's right and makes sense, it doesn't feel
forced," said McManus.