Premium Pricing Enhancement to the Group Pricing Optimizer (GPO)
Note that hotels will receive detailed information regarding this communication via the June 19 edition of the Weekly Update.
Franchisees of Marriott-branded Hotels | Marriott’s Group Distribution Strategy is committed to driving profitable revenue for hotels, owners, and franchisees. One of the key pillars of this strategy is improving the profitability of intermediated group business. While Marriott values its relationships with group intermediary partners, hotels bear the costs associated with group intermediation, primarily in the form of a commission. This commission is a real cost to a hotel, and it is one of several factors considered when determining group rate.
In partnership with Revenue Management, Marriott’s Distribution Strategy team developed and piloted a program focused on improving the profitability of intermediated group business by adding a premium commissionable pricing enhancement to the Group Pricing Optimizer (GPO). Among other factors, the GPO considers costs, market demand, and potential displacement to produce a recommended price which balances profit with the customer’s likelihood of booking. The premium commissionable pricing enhancement to GPO allows hotels to offset the cost of commissions paid through group rates. The enhancement proved to offset commission costs with no negative impact on lead conversion, and is now available for all GPO-enabled hotels in the U.S. and Canada. We strongly recommend that franchisees utilize this enhancement within the GPO.
The premium commissionable pricing enhancement in GPO will be activated centrally for your hotel(s) by July 31. If you do not wish to participate, you can opt out by completing this opt-out form and returning the form by June 30.
For more detailed information on this initiative, Frequently Asked Questions and a Job Aid have been made available for your reference. More information on the GPO and its benefits can also be found on MGS.
We thank you for your support of this critical component of Marriott’s distribution strategy.
