Confidential | Announcing Annual Marriott Rewards Hotel Category Changes for 2017
The program is ready to announce our annual Marriott Rewards Hotel Category Changes. Due in part to the many changes we’ve communicated over the past few years, the annual category changes are more balanced this year and are expected to be better received by the membership.
Annual Changes
Hotel Categories
Along with most hotel loyalty programs, Marriott Rewards reviews hotel categories each year and makes system-wide changes based on the average reimbursement rates at all hotels. We completed this year’s review and are moving 14% of hotels up and 9% of hotels down a category level, globally. Last year, we moved 18% of all hotels; however, only 5% of hotels moved down a level.
As a reminder, hotel categories are based on each hotel’s overall average reimbursement rate (total reimbursement revenue received divided by total redeemed nights). Hotel category changes impact the points required by members to redeem at your hotel, but do not impact your Marriott Rewards annual blended reimbursement rate or reimbursement policy.
Earlier today, Marriott Rewards announced which hotels are changing categories as part of the annual review. The changes are effective for all redemption reservations booked on or after March 7, 2017. The Marriott Rewards category award chart will remain unchanged and the points values required at each category level are not changing.
For any former Starwood-branded hotels in your portfolio, note that the SPG Program Guidance was sent out in October to North American property General Managers, Directors of Finance, and Directors of Revenue Management. The 2017 SPG Program Guidance communication outlines the methodology to determine the category and reimbursement level for each individual property. As of January 20, all North American properties have received SPG Category and Level communications. These communications were sent out to General Managers, Directors of Finance, Directors of Revenue Management, Directors of Operations, Directors of Human Resources, and SPG Champions, as well as on property SPG Reimbursment contacts. All Category and Level changes have now been completed and finalized for the 2017 SPG Program year.
Inventory Control Dates (ICDs)
Marriott Rewards is also reviewing the ICD allotments for hotels. Hotels may appeal their ICD allotments at any time during the year.
Cash + Points
As you may recall, Marriott Rewards launched a revamped Cash + Points last year which continues to provide a revenue opportunity for hotels during their need times and is fully yieldable. Hotels will be reimbursed at the cash portion of the rate or their blended rate, whichever is higher. Nights redeemed for Cash + Points count fully toward the blended rate calculation. We strongly encourage hotels to consult with their Revenue Manager(s) to determine how and when to employ Cash + Points.
Updated Cash + Points reimbursement information was included in the memo to hotels.
Key Upcoming Dates
- February 9, 2017: Hotel and Member Notification
- HPP contacts received an email with their Category/Tier, number of ICDs, and Cash + Points information
- Members informed through MRInsiders.com (Marriott Rewards Social Media channel)
- February 12, 2017: Hotels to be reminded of Marriott Rewards 2017 Category Changes via Weekly Update
- Listing of hotels moving a category and FAQs posted on MGS
- March 7, 2017: High Performance Pricing (HPP) screens to be updated to reflect ICD changes for 2017
- Please note: ICD changes available to use were reset to four (4) in January 2017
- Hotel Category changes and Cash + Points reimbursement rates updated across all reservation touch points
For more information and answers to some frequently asked questions, please visit MGS.
