4 March 2019
London UK/Spokane WA
Magnuson Hotels reports a chainwide occupancy increase of 8 percentage points across its branded and soft brand portfolios for the last 6 months of 2018; an increase outperforming the USA 0.4% occupancy growth rate by more than 20 times.
Driving the unprecedented revenue increase was the launch in May 2018 of Magnuson Direct; the brands’ long-planned direct distribution and hotel management platform.
The new Magnuson Direct platform is an industry first, which significantly simplifies revenue generation and operations for its member hotels across the top 15 global hotel chain.
The Magnuson Direct platform compresses the traditional distribution supply chain by connecting its member hotels directly to all global hotel booking channels via a cloud-based platform that combines hotel PMS, channel manager, with automated room pricing tools and direct connects to all worldwide channels.
The system provides direct connections to Expedia, Booking.com, Hotwire, Agoda, Priceline as well as an exclusive connection to China’s Ctrip with 300 million members. This improves on Magnuson’s existing global alliance with China’s Jin Jiang Hotels and its 120 million rewards members. The Magnuson Direct platform also connects to 650,000 travel agents via GDS services Travelport, Sabre, Amadeus, Worldspan and Apollo.
“In only the first 6 months of operation, all of our initial goals for growth, profit and scalability have been surpassed,” stated company CEO, Thomas Magnuson. “With our new platform, we have been able to connect 100% of the hotel inventory to 100% of the global hotel market, with automated pricing and revenue management running 24/7 for our affiliate hotels.”
For hotels in highly competitive markets, the system offers yield management pricing. This means that as occupancy rises, room rates automatically increase across all online channels. When the hotel is nearly full, the system will shut off commissionable channels, so that the last, high-demand rooms are sold direct to the hotel without commission.
In addition to providing the new system at no additional cost to its affiliates, Magnuson has significantly cut fees and eliminated transaction or GDS channel charges. “Because Magnuson’s new system has lower costs with higher volumes, Magnuson Worldwide can now offer reduced fees for hotel owners,” added company CEO, Thomas Magnuson.
About Magnuson Worldwide: Since its launch sixteen years ago, Magnuson Worldwide has become America’s fastest growing hotel brand and a top 15 global chain, marketing over 1,000 hotels across six countries and three continents. Magnuson Worldwide’s newly formed distribution partnership with Chinese operator Jin Jiang Hotels and Europe’s Louvre Hotels is the world’s largest hotel alliance, forming a consortium of over 9,000 hotels and 900,000 rooms worldwide, equal to the size of a top 2 global hotel chain.
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