April 15, 2021 | U.S. & Canada Franchise Management Company Webinar
| Publication of new Owner & Franchise Communications on mi360 continues to be temporarily suspended. Important information is communicated to owners, franchisees and franchise management companies through other channels including the weekly U.S. & Canada Franchise Update email, Franchise Management Company webinar, and monthly webinar for Marriott Managed Owners in the U.S. |
Thank you for joining us on Thursday, April 15 for the U.S. & Canada Franchise Management Company Webinar. If you were unable to join, a recording and PDF of the presentation are now available (EID and password required).
This webinar covered COVID-19 updates and resources, including:
Key Actions
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U.S. & Canada Franchise Update | April 15, 2021 |
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Prepare for Global Accountability for GSS ITRec to Resume July 1 •Scoring below the ITRec Red Zone threshold during the July – December 2021 tracking period will cause a property to have a Red Accountability Zone and escalate in Accountability Status. •The Red Zone Fee will not be charged for July – December 2021 performance, but is likely to resume in 2022, based on January – June 2022 performance. Review the 2021 Global Accountability FAQs and the Global Quality Program Guide for further information. |
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Increase Revenue Opportunities by Updating MESH/SRO Tracker by May 31; Office Hours Available April 27 |
Sales, Marketing and Revenue Management Updates
EY Open Market Hotel Program
- All hotels have ability to adjust rates and be competitive based on their needs and market conditions.
- Travelers have the freedom and choice to book any hotel within their preferred channels that are at or below market cap.
Best Practices
- EY’s travel program is focused on Sustainability, Inclusion, Wellness, and Innovation.
- Highlight hotel initiatives through internal EY channels that help build a positive representation of your properties.
- Review the EY Partnership Page on MGS for account overview, rate caps, historical room night estimates, etc.
- Partner with your regional GSO team member and MI Project Desk responsible for EY to discuss specific business opportunities.
OTA Audit – Potential Missed Revenue Opportunities
Marriott Global Revenue Management OTA Audit revealed hotel missing rate offers published on m.com that could be provided to OTAs
Results were shared with HPP contacts on Friday, March 26
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- Support available to answer questions: rmfieldsupport@marriott.com
Portfolio-level audits were sent to Franchise Management Company Revenue Management contacts on Tuesday, March 30
Deadline to complete is tomorrow, Friday, April 16
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- 3-week window provided
- Request to acknowledge the audit via a survey form
OTA Audit – Property Confirmation Survey
Effective Selling: OTA + Wholesale
OTA Approved and Non-approved Tactics
Uber Loyalty Initiative
On April 14, Marriott International launched a Loyalty marketing initiative with Uber in the U.S.
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- The Program enables members to earn points on their Uber ride hailing and food delivery activities.
- The Program is funded by revenue share from Uber, and creates opportunity for excess Program funding for Marriott Bonvoy to reduce costs or invest in the Program.
- Members can earn Marriott Bonvoy points for hailing rides and ordering food delivery (at home and while staying at any hotels in the Marriott portfolio). This Program is meant to complement hotel F&B, leveraging existing guest ordering habits.
- For hotel guests, on-Property F&B outlets will continue to be the most convenient and most valuable – guests will continue to earn 65% to 100% more points from ordering from hotel outlets than they will through Uber transactions.
- The Program allows members to earn Marriott Bonvoy points in activities that members are already engaged in and will increase share of wallet, especially during the recovery.
- This creates stickiness with Marriott Bonvoy for Elite members who stay more, spend more, and book direct.
- From Jan.–June 2019, there were 1.4M Uber Eats food deliveries to our hotels – on average, approximately 300 Uber Eats orders delivered to each Marriott property in the U.S. and Canada.
- Potential expansion outside of the U.S. is being evaluated and will be shared in the future when finalized.
Loyalty Initiative Scope
Customer Value Prop
After linking their accounts, members can earn points for their activity on the Uber platform across Rides and Eats:
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- Rides (on premium rides regardless of pickup/destination) – 3 pts/$
- Eats (on baskets $25+ excluding taxes, delivery fees, service charges and tips)
- Inbound – 6 pts/$
- Pick-up (i.e., ordered on the app, retrieved by consumer) – 2 pts/$
- Off-Property / Outbound – 2 pts/$
Property Participation
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- Hotels will not be charged for the points that members earn through Uber transactions.
- Properties will be asked to display promotional signage, allowing for variance by tier and location.
- Properties will be able to set / adjust their PUDO (pick-up/drop-off location) for ride hailing.
- Properties will be provided with a Property Toolkit outlining the Program, brand guidelines, collateral and signage guidelines and FAQs.
- Properties with open restaurants will be invited to participate in outbound delivery at a reduced cost in the coming weeks
Marriott Participation
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- Marriott will receive a revenue share for qualifying Uber transactions.
- Marriott Bonvoy points will be funded through the Uber revenue share at a price higher than the cost to the Marriott system.
- Excess margin will remain in the Bonvoy program to reduce overall costs and/or invest in the Program.
- MI will take a traditional royalty from revenue earned.
Enhanced Mobile Key
WHAT IS ENHANCED MOBILE KEY?
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- Enhanced Mobile Key (EMK) includes enhancements to 3 areas: Associates, Guests and the systems used to deliver this service.
BENEFITS
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- A faster Mobile Key delivery experience to the guest
- Eliminates the swivel chair for FSPMS & LightSpeed
- Automates the room ready process
- Upgrades to the PMS from 1970-era processes
WHO’S ELIGIBLE FOR ENHANCED MOBILE KEY?
WHAT ARE THE COSTS?
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- Varies by lock vendor, ranging between $1,500 – $3,000 and depending on GPNS requirements.
- Note: The level of effort required to upgrade varies by hotel but is generally iT related and will be better outlined once the hotel signs up.
IS THIS REQUIRED?
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- As this will be a brand standard in the future, LightSpeed and FSPMS hotels were required to budget for retrofit in 2021.
- Currently optional for FOSSE hotels; however, FOSSE hotels interested in the Self-Service Arrival Kiosk must have Enhanced Mobile Key to activate.
Self-Service Arrival Kiosk
The Self-Service Arrival Kiosk allows an expedited arrival experience for members and non-members who prefer low-contact interactions. The kiosk is live in 3 hotels with an additional 40+ scheduled to deploy by Q3.
HOTEL ELIGIBILITY
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- FOSSE U.S. Hotels*
GUEST BENEFITS
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- Complete an easy, 3-step process to check in for a single reservation
- Process payment method for reservation
- Make room key(s)
- Check out + view/email folio
- Enroll in Marriott Bonvoy (hotel gets credit)
- Group travelers can skip the line at the front desk
HOTEL BENEFITS
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- Spend less time completing transactional tasks with guests and instead focus on more meaningful interactions
- Potential for hotel cost savings for hotels
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Cost Type |
Cost per Unit |
What it Covers |
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One-time |
$5,703.75 |
Covers the base unit, warranty, credit card device, year 1 license, and a one-time deployment cost |
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Ongoing |
$600 per unit / year |
Ongoing support cost |
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Ongoing |
$469 per unit / year starting in year 2 |
Annual license for kiosk |
*Prerequisites for the kiosk include Chip and PIN and Enhanced Mobile Key. Additional information on how to get the kiosk can be found on MGS.
Global Accountability
As of July 1, the Accountability Status for each property will be unfrozen from its status immediately following the July – December 2019 tracking period, and properties will be accountable for their GSS ITRec score, as measured throughout the July – Dec. 2021 tracking period. The Red Zone Fee will not be charged based on July – Dec. 2021 performance.
Scoring below the ITRec threshold during the July-Dec. 2021 tracking period will cause a property to have a Red Accountability Zone and escalate in Accountability Status.
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ITRec Red Zone Thresholds, July – Dec. 2021 |
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Select & Premium Tiers |
Luxury Tier |
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50 |
56 |
For the July – Dec. 2021 Tracking Period:
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- The only accountable metric is GSS Intent to Recommend (ITRec)
- The Red Zone Fee will not be charged
- Additional metrics, such as the Audit Program/BSA and Mobile Key Compliance, are not Red Zone triggers for 2021 but are likely to resume in 2022
- The Red Zone Fee is likely to resume in 2022, based on Jan.-June 2022 performance
For properties with a Red Zone Accountability Status:
There are now two ways to earn a clean slate:
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- 4 consecutive non-red tracking periods
- As an incentive for strong performance, a property can accelerate a clean slate for its Accountability Status with 2 consecutive Green or Clear accountability zones – this incentive will be applied retroactively based on 2019 performance (that is, the Jan.-June 2019 and July-Dec. 2019 tracking periods)
With the start of the July – Dec. 2021 tracking period, MSB hotels in the U.S./CAN will follow the same Red Zone process as followed by all other brands globally (that is, a default will not occur until Red Zone 3)
** Owners and Franchisees will be able to view their unfrozen Accountability Statuses on the QA site by mid-May 2021
Resources
Global Quality Accountability MGS page
2021 Global Accountability FAQs
Questions: qa@marriott.com