Marriott Announces Six New Dynamic Wholesale Rate Programs; Franchised Hotels Encouraged to Opt-in via eFast & HPP
Background
A core element of Marriott’s wholesale distribution strategy for 2015 is an accelerated adoption of dynamic rates by key wholesalers, combined with a review and reduction of the legacy static net rates and allotment model.
Since the launch of the Receptive Operator Dynamic (ROD) and Tour Operator Dynamic (TOD) wholesaler programs several years ago, the wholesale onward distribution landscape has evolved; notably in terms of non-packaging, increased intermediation and expansive points of sale. In order to address current and future requirements, we have developed six new dynamic wholesale rate plans designed to segment and align compensation with each wholesaler’s target customers and distribution model(s).
Access to these rate plans will be governed by centralized corporate agreements and the new rate plans will operate in tandem with Marriott’s existing TOD program.
As we sign more wholesalers centrally to our dynamic rate programs, hotels will typically experience benefits, including:
- Lower cost of sale compared to the current static FIT net rates discount levels
- Decrease in Look No Further® claims; dynamic rates are ‘real-time’ and float off benchmark
- Property-level operational efficiencies; dynamic programs offer seamless rate and reservation delivery
- Faster payment settlement via single-use credit card vs. direct bill / extended credit
Program Highlights
Details on individual programs can be found on MGS. All new programs:
- Feature Direct Connect, which ensures all reservations are delivered dynamically with no need for manual intervention
- Payments are managed through wholesaler single-use credit card ensuring ease of room and tax collection
- Are fully yieldable and not subject to last room availability
- Use centralized solicitation via HPP and the eFAST participation form process
- No hotel-direct contracting is needed
Additionally, hotels can opt out from individual or all programs at any time.
FAQs
Should my hotel(s) participate?
Participation in one or more of the programs is entirely optional; all are fully yieldable and not subject to last room availability. Hotels in leisure destinations currently offering static wholesale net rate contracts/allocations should consider opting in to facilitate the future transition away from static rates. Should you have any questions about your hotel’s suitability for participation, we suggest you consult with your respective Sales and Revenue leaders.
The programs have generic coding. Multiple wholesalers will have access to each rate plan; however, this will be strictly controlled through the central corporate agreements.
Which wholesalers are already signed?
There are agreements in place with a number of regional wholesalers who currently source Marriott inventory via global wholesalers, such as Ottila International, Team America, Amerilink, and Special Tours. Other contracts are at an advanced stage and we will provide updates via Weekly Update as additional agreements are signed. This will include select wholesalers currently receiving dynamic rates via the TOD program transitioning to the new programs.
How do hotels sign up?
Information will be communicated to hotels via the February 23 Weekly Update.
For your reference, instructions for on-property rate loading and inventory management can be found on MGS. Each hotel is required to load rates in HPP and an eFast participation form must be completed for each program. Hotels wishing to participate are encouraged to complete both by February 28, however the opt-in will remain open after this time.