What is the meaning / definition of Private Label Chain Code, in the hospitality industry?
Private Label Chain Code is a 2-letter code, which is used mainly by the GDS to identify chain operated hotels. Similar to a 3-letter code used in the aviation to identify airports, many hotel chains and hotel groups have their own Private Label Chain Code.
The GDS chain code is an important sales tool within marketing programs. The major benefit is building brand awareness and recognition across distribution channels.
With a private chain code marketers can focus on promoting the unique characteristics of its members’ properties to the GDS and other electronic distribution channels and industry partners. It strengthens the brand’s visibility and accesibility, allowing travel consultants to conveniently locate and book the group’s properties across all GDSs. Agents who know the GDS code often look for properties listed with it first.
A Private Label Chain Code empowers to control marketing messages and promote chain standards and loyalty programs for the properties. It strengthens the access to the travel agency community and therefore the overall booking potential.
The Private Label Chain Code is commonly used by chain hotels rather than independent hotels.