Marriott’s Global Distribution Strategy to Drive Direct, Reduce Costs and Ensure Brand Trust
Marriott’s Global Distribution Strategy is a top priority for all of us, and we are continuing to develop an integrated distribution strategy to increase customer preference and profitability. This involves executing multiple tactics to address the rising costs of distribution. I wanted to give you a preview of several of these initiatives that will be shared with hotels soon. These tactics have the goal of reducing costs, ensuring consistency among all of our hotels, and driving customers to our direct channels. They are:
Reinforce Non-Commissionable Special Corporate Rates
Marriott is committed to transparency and pricing integrity for our customers; however, there is increasing confusion among customers and associates about Marriott’s position regarding non-commissionable special corporate rates. To ensure our relationships are approached consistently and effectively this upcoming pricing season, we would like to reinforce Marriott’s long-standing position:
- Special corporate rates are non-commissionable.
- Marriott-branded hotels extend special negotiated corporate rates to a select number of companies following a very careful review of both qualitative and quantitative criteria.
- These volume-producer rates are negotiated directly with the customer and priced net of commission.
- Very few select customers should continue receiving commissions due to grandfathered agreements or special circumstances; however, no other exceptions should be granted without appropriate leadership approval. View the FAQs for more details.
As much as $7M in commission savings is possible by raising awareness and scrutinizing commission payments at hotels. All properties should conduct an audit of rate programs in market codes 17/18 to confirm that the commissionable indicator is set correctly. Read the FAQs.
Allow Day-Of Claims: Look No Further Best Rate Guarantee
Foundational to our Global Distribution Strategy is encouraging customers to use Marriott’s direct booking channels, and the #1 driver of channel choice is confidence it’s the best rate. The purpose of Marriott’s Look No Further® Best Rate Guarantee is to instill confidence that our direct channels have the best rates available, especially considering new entrants in the market that offer same-day discounts.
- Currently, customers must submit a claim 24 hours prior to arrival.
- Beginning July 1, customers will be able to submit Look No Further® claims until 11:59 p.m. on day of arrival. All other current terms and conditions for a claim to be approved will still apply.
Read more on MGS.
Implement Revised Third-Party Channel Standards
The required Channel Standard for Third Party Distribution ensures consistency in how our brands are represented in third party channels. It requires hotels to use only certified third parties and to comply with the appropriate approval criteria when distributing hotel inventory. Compliance with this standard strengthens our ability to manage how our rooms are sold and protects customers from exposure to misleading claims. Additionally, it allows us to maintain our Look No Further® Best Rate Guarantee. Hotels should review and comply with all revisions to the Channel Standard, which include:
- New: Criteria for Approval of Wholesale Third Party Distribution
- Updated: Criteria for Approval of a Third Party Channel
- Updated: List of Approved Channels