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A coalition representing nearly 1,000 Marriott-affiliated hotels is urging Marriott International to make changes to its Marriott Bonvoy® loyalty program. They argue that hotel owners deserve higher compensation for award stays and greater transparency regarding how loyalty program revenue is distributed. If Marriott gives in, this could mean even higher award pricing.
According to a report from The Wall Street Journal, the group has called on the hotel giant to revise the reimbursement structure used when Marriott Bonvoy® members redeem points for free nights at participating hotels.
While Marriott operates one of the world’s largest hotel loyalty programs, the vast majority of Marriott-branded properties are not owned by the company itself. Instead, they are owned by independent investors and hotel companies that either franchise or contract with Marriott to operate under its brands.
Marriott Bonvoy® is a key component of Marriott’s business model. It drives customer loyalty through hotel stays, co-branded credit cards, and numerous travel and retail partnerships. Members earn points through a variety of channels and can redeem those points for free hotel stays across Marriott’s global portfolio. The dispute centers on how hotels are compensated when those redemptions occur.
Hotel owners argue that the current reimbursement formula does not adequately compensate properties, particularly as Marriott Bonvoy® has expanded beyond traditional hotel stays and become an increasingly significant revenue generator for Marriott. Owners reportedly want reimbursement rates that more closely resemble what hotels receive from third-party booking platforms.
The group is also seeking greater transparency into how Marriott Bonvoy® revenue is generated and allocated among participating properties. This issue that has become more prominent as loyalty programs evolve into major standalone businesses for large hotel companies. Fee revenue from Marriott Bonvoy’s co-branded credit cards is expected to reach around $1 billion this year.
The concerns highlight a growing tension between hotel owners and brand operators over the economics of loyalty programs. While Marriott Bonvoy® helps drive bookings and customer engagement, some owners believe the financial benefits are increasingly flowing toward Marriott rather than the individual properties responsible for delivering the guest experience.
Anthony’s Take: Marriott has not announced any changes to the Marriott Bonvoy® program, but the requests underscore the growing importance of loyalty programs not only to travelers, but also to the hotel owners who help fund and support them. Let’s see how Marriott addresses this one.
(Image Credits: Marriott.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
