Airlines

IHG & Iberostar Launch Strategic Partnership

IHG has simply revealed the small print of its 18th lodge model…

Fundamentals of the IHG & Iberostar alliance

InterContinental Motels Group (IHG) and Iberostar have introduced a long run industrial settlement. For these not conversant in Iberostar, it’s a family-run enterprise based mostly in Palma de Mallorca, Spain, which has been round for greater than 65 years. The lodge group has a heavy give attention to the all-inclusive seaside resort sector, and likewise owns an airline, World2Fly.

World2Fly is owned by Iberostar

Iberostar will proceed to take care of 100% possession of its accommodations, preserving its autonomy. Nevertheless, as much as 70 accommodations (and 24,300 rooms) can be added to IHG’s system, below the Iberostar Beachfront Resorts model. This can develop into IHG’s 18th lodge model, and can enhance IHG’s world system dimension by as much as 3%. Iberostar can be included in a brand new “Unique Companions” class in IHG’s model portfolio, alongside its Suites, Necessities, Premium, and Luxurious & Way of life classes.

The primary Iberostar property is about to affix IHG’s programs in December 2022. The primary resorts to affix IHG will embody Iberostar Grand Paraiso (Riviera Maya, Mexico), Iberostar Choice Hacienda Dominicus (Bayahibe, Dominican Republic), Iberostar Grand Rose Corridor (Montego Bay, Jamaica), and Iberostar Choice Anthelia (Tenerife, Spain). Additional properties in Spain, and different common locations in Southern Europe and North Africa, will be part of IHG’s programs over the course of 2023 and 2024.

With this partnership, Iberostar will achieve entry to IHG’s enterprise platform, together with its distribution channels and the IHG One Rewards loyalty program, which has greater than 100 million members. In the meantime IHG will get elevated consciousness of its present manufacturers with a brand new set of vacationers, and provides current clients entry to extra properties.

Iberostar Grand Paraiso

My tackle IHG’s partnership with Iberostar

This strategic alliance between IHG and Iberostar is totally different than among the different lodge portfolio progress we’ve seen up to now. This clearly isn’t as main as a full-on acquisition (as we noticed when IHG acquired Six Senses, for instance), although it’s extra vital than only a advertising and marketing partnership (like what we have now between IHG and Mr & Mrs. Smith).

IHG isn’t truly shopping for a stake in Iberostar right here, however it is a 30+ yr partnership, and the Iberostar Beachfront Resorts model can be built-in into IHG’s portfolio.

What’s not solely clear is simply how seamless the mixing can be. Will IHG elite advantages absolutely be honored at these properties? What’s going to capability controls on award stays appear like? Will all money charges at Iberostar properties be eligible to earn factors, or do you should guide by an IHG channel, and probably pay greater than the direct value?

Finally it’s nice when world loyalty program members have entry to a bigger portfolio of accommodations. Nevertheless, I discover that IHG is particularly unhealthy in relation to consistency and truly integrating new manufacturers into its portfolio. For instance, plans have been introduced for IHG to accumulate Six Senses in early 2019, and several other Six Senses properties nonetheless haven’t been built-in into IHG One Rewards.

Iberostar Choice Hacienda Dominicus

Backside line

IHG and Iberostar are launching a brand new strategic alliance, which is able to see Iberostar Beachfront Resorts added as IHG’s 18th lodge model. It’s anticipated that by 2024, as much as 70 Iberostar properties can be built-in into IHG’s distribution channels and loyalty program.

For many who are into all-inclusives, that is little question a pleasant add. I’m simply curious to see what the execution is like.

What do you make of IHG’s new alliance with Iberostar?

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