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This Hotel Loyalty Program Really Pays Off

Travelers who are fed up with dynamic pricing loyalty schemes where the cost to redeem those hard-earned miles or points varies between not available and more than I have in my account may have a place to turn, at least when it comes to their next hotel stay. Global Hotel Alliance represents 44 hotel groups and over 840 four- and five-star hotels. Its GHA Discovery loyalty program boasts over 29 million members and is gaining three million new members per year.

You’re not alone if you aren’t familiar with GHA or its loyalty program. Only about two million members are based in North America, a legacy of its unique structure.

Founded in 2004 as a way for smaller chains to compete with bigger brands and their massive budgets for technology, distribution and sales representation, GHA launched its first frequent guest program a few years later. That initial play was focused on experiences, according to EVP Strategy Kristi Gole, a former executive with Neiman Marcus. Each hotel would create something special; for example, in New York, a hotel would combine tickets to a Broadway show (that anyone could buy) with backstage access (a bit trickier to attain).

In December 2021, the program was relaunched, keeping the experiences but adding Discovery Dollars as its earn-and-burn currency.

“It’s brilliant,” says Mary Gostelowan award-winning journalist who covers the hotel industry, adding, “There’s real money involved. Discovery Dollars are valued one-to-one pegged to the U.S. dollar.”

There are four membership tiers and the higher you get, the more currency you bank.

Top-tier Titanium members get 7% of their eligible spend, excluding taxes, tips, and fees, with points converted 1-to-1 using the U.S. dollar as its peg currency.

In other words, if you are in London, your charge in British Pounds is converted to points in the American dollars.

Silver, the starting tier, yields points at a ratio of 4% of eligible charges, while Gold gets 5% back in rewards currency and Platinum rebates at 6%.

Like every loyalty program, there is lots of fine print and the fine print matters.

While all properties in each of the participating chains need to allow you to earn and burn, there are ineligible rates, mainly sold via online travel agencies such as Booking.com, Expedia, Priceline, and Hotels.com, as well as tour operator rates.

In terms of earning on spend beyond your room rate, Gole says, “As a general rule, dining, spa and golf, and curated member experiences are eligible to spend in our program, but in application, it is limited to what is in-house and charged to the folio.”

That means “if a spa or restaurant is outsourced, that will not be eligible, and the hotel will advise that.”

Service fees, taxes, tips, and other fees are not considered eligible spending.

“For concierge services, if there is a charge being made to the folio, that would likely be considered a service and or be outsourced, so would likely not be considered eligible spend and would systemically fall within a category that would not apply for tier credit or Discovery Dollars rewards earning,” Gole notes.

Getting status is relatively easy.

While Titanium requires 30 nights per year or $15,000, it can also be had by staying at three of GHA’s brands, something critics in online forums say dilute perks that are subject to availability, such as double upgrades, early check-in and late check-out.

Of course, it’s how you can use your dollars that Gole says makes the program particularly attractive.

For example, if you are staying on a business trip paid for by your company, you can use points to remove charges for purchases your CFO may not sign off on, such as spa treatment or dinner with your best friend at the hotel restaurant.

At the same time, Head For Pointsa U.K.-based advice site covering loyalty programs, notes that Discover Dollars expiry varies, with some promotions requiring you to redeem your earnings within six months or risk losing them.

Gole says the best part is deciding whether or how many points you want to use once you get the bill at check-out.

So, what’s next?

GHA is testing its first affinity credit card, which will be launched in the UAE next year.

It’s not a given that the concept will be rolled out. Previous research shows members already have preferred points-earning payment cards, which they can essentially double-dip by using as payment for their GHA stays.

Why such low awareness in a major market such as the United States?

Membership in its loyalty program is driven by member hotel groupswith the majority having their principal footprints in Europe, Asia, and other far-flung destinations. GHA’s property map shows only about 30 hotels and resorts in the Continental U.S. and Canada.

What’s more, many of the groups are strong in specific regions or countries, as represented by a trio of its newest members. Cinnamon Hotels & Resorts has 16 properties in Sri Lanka. Likewise, Sunway has 11 resorts around Malaysia and Andronis a half dozen on the Greek islands of Santorini and Paros.

Still, the diverse lineup of groups is impressive, spanning from founding member Kempinski, which has landmark hotels in Germany, to Anantara, which has 5-star resorts across Asia and the Middle East, and Nikki Beach, where the pool is the party.

Gole says more groups are in the pipeline, and the future may also see more business brands. When Anantara owner Minor Hotels bought business traveler-focused NH Hotels, Gole says members noticed an influx of NH loyalists using their Discovery Dollars for vacation stays. And that’s part of the success, she says, is that new groups don’t mean competition but more new loyalty members entering the ecosystem.

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