Lead Hospitality

Big Hotel Brands: Heroes or Villains?

THE IDEA

Big hotel brands inspire both admiration and concern. They have raised global standards, led technological innovation and helped professionalise the industry. Yet their scale, purchasing power and standardised experiences can create major challenges for independent hotels seeking to protect their local identity.

Talking about major hotel brands means entering a territory where admiration, criticism and, above all, strategic reflection converge. On the one hand, these brands have redefined the concept of global hospitality, setting standards that many seek to replicate. On the other, they are often perceived as giants whose unlimited resources threaten to overshadow independent players in the sector. But is that perception fair? Are major hotel brands truly the enemy of independent hoteliers, or are there valuable lessons to be learned from them? The relationship between major brands and the rest of the hotel industry is not one of antagonism, but of balance. Knowing how to find and leverage that balance is an essential skill in our profession. This idea, which guides my perspective, reflects a strategic approach: understanding these giants not only as competitors, but also as sources of innovation and, at times, as indirect allies in transforming our sector. That said, this reflection is not about portraying ourselves as victims because we are smaller players, nor about blindly glorifying major brands. My aim is for us to recognise opportunities, draw parallels and learn to navigate a market where both worlds coexist.

Why do major brands seem like "heroes"?

Major hotel chains have established operational excellence models that serve as benchmarks for the industry. Some clear examples include:
  • Global quality standards: From cleanliness to guest service, major brands have set standards that travellers now expect from any property. This even benefits independent hotels, as it raises overall expectations and encourages professionalisation.
  • Investment in technological innovation: These chains tend to lead the implementation of disruptive technology. Examples include automated check-in systems, in-room virtual assistants and artificial intelligence-based loyalty programmes. According to a McKinsey report, hotels that adopt advanced technologies increase their revenue by up to 20% annually. This shows that innovation benefits the sector as a whole by pushing the boundaries of what is possible.
  • Ongoing staff training: Major chains invest heavily in developing their teams. We should not see this as a threat, but as a standard we should all aspire to match.
  • Mass marketing that benefits everyone: When a major brand promotes a destination, it is indirectly attracting guests who may also be interested in independent hotels. In other words, they are creating demand.

And why do they seem like "villains"?

We cannot ignore the challenges posed by major brands:
  • Economies of scale beyond the reach of many: With their purchasing power, major chains negotiate prices for suppliers, software and services that are impossible to match. This leaves independent hotels at a clear economic disadvantage.
  • Market saturation: In key destinations, these brands can dominate supply to such an extent that smaller hotels are pushed to the margins. According to an STR Global study, in some urban markets major chains account for up to 70% of total occupancy, making it difficult for other properties to compete.
  • Uniformity of the experience: While major brands are synonymous with consistency, this homogeneity can erode the local authenticity that many travellers seek. This is an area where independent hotels have a major opportunity to stand out.
  • Centralised loyalty: Major chains' points programmes are powerful tools for retaining guests, leaving independent hotels in a difficult position when it comes to competing. But who said loyalty always has to revolve around points?
Rather than viewing major brands as unattainable villains, we can approach them with a strategic and intelligent mindset. Here are some key ideas:

Embrace innovation, but on your own terms:

      • You do not need technology costing millions of euros. Tools such as affordable management software and tailored applications can enhance the guest experience. Think of scalable solutions that fit your needs.

Differentiate yourself through local authenticity:

      • While major chains standardise, independent hotels have the advantage of offering authentic experiences. From room design to gastronomy, highlight what makes your destination unique.
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Personalise more than they do:

      • Giants are experts at operating at scale, but personalised service remains their Achilles' heel. Know your guests by name, anticipate their needs and make their stay unforgettable.

Build smart partnerships:

      • Why always compete when you can collaborate? Consider how you can partner with complementary brands, even major ones, to attract a new market segment.

Communicate your values with conviction:

      • Modern travellers value sustainability, social impact and authentic stories. According to Booking.com, 81% of global travellers prefer to stay in hotels with sustainable practices. If you implement initiatives such as renewable energy or eliminating plastics, communicate them clearly.

Heroes or villains?

The answer depends on how you choose to interpret the role of major brands in your market. For some, they may be villains that monopolise resources. For others, heroes that raise standards and push us to improve. But for those who truly understand the dynamics of hospitality, they are simply necessary players on a board that rewards creativity, strategy and passion. As a hotelier, you have the power to decide how they will influence your business. Will you face them with resentment, or use them as inspiration to evolve? After all, in this sector, more than heroes or villains, what we need are strategic minds that know how to make the most of every opportunity. What kind of player do you want to be?
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