CRMS/RMRS/Plus Services Integration: Program Changes and Next Steps
This information will be provided to hotels via the August 27 edition of the Weekly Update.
Beginning on Jan. 1, 2019, Starwood’s Centralized Revenue Management Services (CRMS), Marriott’s Americas Revenue Management Remote Solutions (RMRS) and Plus Services organizations will integrate into a single organization: Revenue Management Advisory Services (RMAS). This combined organization will maximize Revenue Management capabilities across a growing portfolio of nearly 2,200 participating hotels.
The RMRS and CRMS organizations consistently drive stronger results and returns for participating hotels compared to non-participating hotels. Results include*:
- 2018 June YTD RevPAR Index Percent Change growth year-over-year was 0.3% higher than non-participating hotels
- 2017 Full Year Retail/Non-Qualified mix was 38% compared to 33% for non-participating hotels
- 2017 Full Year Revenue Management System adoption averaged 120% compared to 105% for non-participating hotels
- 5% average higher Stakeholder Satisfaction for last three years
*All U.S. and Canada comparable participating and non-participating hotels
What’s Changing in 2019?
The 2019 service tier levels will remain consistent with the previous RMRS offerings, as the organization migrates to Marriott systems. As of Jan. 1, 2019, the RMAS organization will include the following new benefits:
- Increased strategic oversight and analysis through leadership re-alignment and enhanced operational capabilities
- Geographic alignment of hotels to support market-wide coverage
- Dedicated Account Management with defined deliverables for portfolios containing 10 or more participating hotels
- Robust ad-hoc Plus Services support options offering a targeted Revenue Management approach for each hotel within your portfolio. Additional details on these services are shared below.
The RMAS organization meets the unique needs of each hotel through a flexible and targeted approach. Hotels are able to combine a base service tier with targeted, ad hoc support to meet unique needs.
Base Service Tiers
Revenue Management Advisory Services are organized into five scalable, cost-efficient tiers of bundled services that account for hotels’ needs, based on sales and catering system, complexity and brand category. Additional details and pricing related to deliverables within each tier are available on MGS (Franchise | Managed Owner)
Plus Services
Plus Services are additional Revenue Management support options. Any hotel may add these targeted support services to supplement their base service tier or contract these services separately. Plus Services may be added at any time throughout the year and offer the flexibility of ad hoc support when necessary. All pricing is customized based on requirements contracted; please review additional details on MGS.
Next Steps for Currently Participating Hotels:
- Marriott Rewards Hotels: Participating Marriott Rewards hotels will be automatically re-enrolled for 2019 RMAS services at the current RMRS level.
- SPG Hotels: Currently participating SPG hotels will automatically be re-enrolled for 2019 RMAS services at the service tier aligning with their sales & catering system and most closely matching their current CRMS level of Revenue Management support. As part of this integration, SPG hotels will pay a one-time conversion fee of $3,990 in January 2019. This fee will cover contract setup, billing processes, OneYield v2 support, office hours, a review of the sales strategy packet, and costs associated with organization integration. In addition to daily revenue management coverage, your hotel(s) will be supported through reservations systems integration. In preparation for a seamless integration, the team will prepare all revenue management systems data for your hotel(s). Post cut-over, the team will audit and validate that all data correctly populated the Marriott systems. Office hours and reporting support will also be available.
*Please note RMAS participation is no longer a required brand standard for franchised Element hotels; participation is optional for those hotels with alternative certified revenue management options.
ACTION NEEDED
- Franchise Management Companies: All Franchise Management Companies should review the service level for each hotel within your portfolio and determine if a service tier upgrade or the addition of Plus Service ad-hoc support options are necessary. To adjust your tier, or opt-out of revenue support, notify RMAS@marriott.com by Sept. 15, 2018.
- Managed by Marriott Owners: 2019 pricing will be included in hotel budgets.
Next Steps for Non-Participating Hotels:
Contact RMAS@marriott.com to discuss how RMAS could help to support your hotel(s) in 2019. Hotels should enroll by Oct. 1, 2018 for a Jan. 1, 2019 start date. Requests received after that date will only be accommodated on a space-available basis. Plus Services support is available throughout the year.
Resources & Upcoming Webinar:
Franchise Management Companies are encouraged to join the Franchise Management Company Webinar on Aug. 24, where Lee Jones, Vice President, Revenue Management Advisory Services will review the program changes and answer questions about the enrollment process. Register for the webinar.
Should you have additional questions, visit MGS or email RMAS@marriott.com.
