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May 21, 2021 Owner & Franchise Webinars, Management Company Webinars, FMC Weekly Webinars

May 20, 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, May 20 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

U.S. & Canada Franchise Update | May 20, 2021

Review Updated Commitment to Clean Protocols
Review current Commitment to Clean Protocols (U.S. Hotels | Canada Hotels: English | French) for most recent changes, including updates to the Face Covering Policy. Updated signage will be available on MGS by the end of the week.

Review Supernova Rate Shopping Platform Daily and Resolve Violations to Avoid Additional Charges 
Beginning June 1, mobile shops for Expedia, Agoda and Booking.com will be added to the Supernova Rate Parity Dashboard in addition to the desktop points of sale; however, charges for mobile violations will not begin until Aug. 1. Refer to the Best Rate Guarantee MGS page and Supernova User Guide for additional information on violations, charges and how to obtain support.

Prepare for EMPOWER Reservations Deployment to GXP Hotels July 20
Associates responsible for creating and modifying reservations in MARSHA will be able to manage reservation activity directly in the GXP Guest Profile. Hotels will receive a Land-It task list in June outlining preparation activities.

Update Hotel Parking Information for Mobile and Web Check-In by May 31 to Prepare for Parking Configuration Enhancements Coming in June
Enhancements will allow for more detailed parking information to display in the mobile app for guests using Mobile Check-In. Refer to the parking job aid for instructions and contact the Digital Guest Experiences team with questions.

Sales, Marketing, & Revenue Management Update

Topline Trends

  • Consumer Confidence Continues to Strengthen
    • The Consumer Confidence Index rose +12pts from March to April.
    • 35% of consumers globally are planning a leisure trip with a hotel stay in the next 3 months–an increase of +9pts since January.
    • As of late April, 41% of consumers globally felt safe staying in a hotel and 32% felt safe taking a flight.
  • A Sense of Normalcy Returning as Restrictions are Lifted
    • As vaccination campaigns have progressed, many U.S. markets are easing mask mandates, lifting restrictions and returning to “business as usual” earlier than expected.
  • Meeting Customers Heightened Expectations is Paramount
    • 58% of U.S. consumers say they have higher customer service expectations than they did a year ago.
    • ~70% say one bad service experience is enough to reduce their loyalty.

SOURCES: 1. The Conference Board; Deloitte; Phocuswire  2. The Wall Street Journal  3. Gartner

2021 Pricing Season Recap

The decision to roll over programs from 2020 to 2021 was driven by resource constraints across all teams as well as the desire to reduce the ADR Recovery timeline.

    • 93% of Accounts accepted the Rollover.
    • Enhanced Pricing Protection (EPP) was a critical factor in gaining customer buy-in.
    • Globally, the Average Account Actualized ADR decline is 8% due to retail rate erosion triggering EPP.
    • Many third parties, seeking to demonstrate their value proposition, discouraged rollovers and pursued RFP or deeply discounted dynamic rates. Our strong relationships with customers themselves enabled us to overcome many of these obstacles.

What is Enhanced Pricing Protection?

  • Enhanced Pricing Protection: The enhanced pricing protection is given to the accounts that agree to rollover. It is an established percent discount that is calculated off of the property’s flexible retail rate and that calculated price point is compared to the negotiated ceiling rate. Accounts will receive whichever is lower at the point of sale.
  • Non-GPP GSO Accounts: 5%
  • GPP Accounts: 10 or 15%
  • U.S./Canada Account Sales: 5%

How EPP Works

Scenario:  Guest booking for 1 night on Jan. 27

ABC Company :  Global Partner Discount of 15%

AT XYZ Marriott, they had a preferred contracted rate of $198 for Jan. 1 – Dec. 31, 2020.

This rate was rolled over at the same rate for 2021

Hotel’s Daily Retail Rate

Automated Rate Calculation

Account Negotiated Rate

End Result – Account Received Rate

$230

$230 X 85% = $195

($230 discounted by 15%)

$198

$195

2022 BT Pricing Approach

Recommend Continuing Rollover Strategy for 2022 based upon customer feedback and our forecast and demand pricing recovery for this segment.

    • 2021 Contract Rates be extended through 2022.
    • Select high value accounts may warrant a 2-year rollover.
    • Clients will still be given the opportunity to renegotiate up to 10% of their portfolio.
    • Accounts Accepting Rollover will continue to receive EPP; those choosing to renegotiate will revert to traditional rate automation in which retail rate acts as a rate ceiling.

Key Points

  • History tells us going out to bid will result in negotiated rate declines of at least 10%.
  • Scenario Modeling suggests it could be 2025-2027 before we return to 2020 SC rates (based on historical data and trends) if we open negotiations and reset baseline SC rates. Our recommended roll over strategy will reduce that timeline by two years (2023-2025).
  • Customers are uncertain about future travel volume and pattern, making pricing analysis difficult. We cannot negotiate 2022 based on how an account behaved in 2019.
  • Rolling over programs gives us our best chance to retain as many Marriott branded hotels as possible in preferred programs, as accounts seek to reduce the number of hotels in their programs.
  • Markets with stronger retail recovery will experience an increase in effective Special Corporate Rate based upon having fewer dates where EPP is triggered and more dates where the preferred rates are charged.

What We’re Hearing from Customers

  • Over 60% of our GSO travel managers noted their 2022 SC pricing approach is “undecided” – we have an opportunity to influence if we act now.
  • 25+ Accounts have already expressed interest in rollover during initial customer surveys.
  • Sustainability is a business priority for many corporations; we will add solutions in this area to our overall BT value proposition.

MARRFP Process – Items to Note

  • Compelling Business Case (CBC) process remains suspended.
  • Marriott Account Leaders will continue to work with customers to present new hotels where customers agree/need hotels.
  • Changes to Room Pool Group configurations will not be permitted (unless Room Pools no longer exist).

Special Corporate Pricing Timeline

Date

Action Item

Details/Audience

May 20

2022 Pricing Season Approach

-Memo in U.S. & Canada Franchise Update regarding 2022 Pricing Approach

May 27

Prepare for Special Corporate Pricing Season

-Review overall timeline: plan for webinars & training (FS/MSB GM/Sales/RM)

-Self-Audit Reports: Conduct Self-Audits under the Tools and Resources tab in MarRFP

     > These audits may require changes in EPIC to ensure all information is complete for our customers to see in their  RFP’s

     > Blank or inaccurate information could jeopardize hotels from getting into account travel programs

-Review Special Corporate Pricing Seasonality Guidelines

June 17

Prepare for Special Corporate Pricing

-Listen to “Preparing for 2022 BT/MarRFP Pricing Season” webcast (Sales/RM)

-Complete eLearning available: MarRFP General Pricing Screens

-Listen to Continent specific “Pricing Season Kickoff” webcast organized and communicated by continent teams(GM/Sales/RM)

June 21

Start work in MarRFP

-Complete MarRFP General Pricing setup screens (due July 2, 2021)

-Complete eLearning: Special Corporate Pricing Tool (SCPT)  (OPTIONAL for 2022)

     > If using SCPT, complete set up and begin work in the SCPT

July 5

First RFPs launch

-Review Centrally Priced Property Required Actions Checklist and Non-Centrally Priced (Local) Accounts Property Required Actions Checklist Special Corporate Pricing & Budgeting Resources page on MGS

SMR Spotlight: Supernova Mobile Shops

Best Rate Guarantee: Supernova continues to be a key component for ensuring Marriott’s BRG and Distribution Strategy

Direct Channel = More Profit

Drives the highest revenue at the lowest possible cost

Direct digital channels are ~6-7% more profitable

~$19 cost savings per booking

Mobile Bookings Will be Added to Supernova Hotel Dashboard

Today, Supernova displays desktop shops for Booking.com, Expedia, Agoda and Trip Advisor

Beginning JUNE 1, Mobile bookings will round out OTA visibility

Mobile Details

    • June 1: Mobile shops for Booking.com, Expedia and Agoda added to the Hotel Dashboard
    • June 1 – July 31: Grace Period for any charges associated to mobile booking “Lose” violations
    • August 1: Mobile booking “Lose” violations count towards OTA “Lose Days”

There is no change on how “Lose Days” are charged

BRG Violation

GREEN (3 or fewer lose days per calendar month)

YELLOW (4-13 lose days per calendar month)

RED (14 lose days or more per calendar month)

Approved Consumer Claim

$50 per Approved Consumer Claim

$75 per Approved Consumer Claim

$150 per Approved Consumer Claim

Observed OTA (desktop/mobile) or Metasearch Violation

No Charge

$75 per OTA or Metasearch lose day

$150 per OTA or Metasearch lose day

What Actions Should Hotels Take?

  • Review the Hotel Dashboard daily. It becomes increasingly difficult to replicate issues over time.
  • Pay attention to any mobile lose shops – Note that mobile lose shops will be marked with a “Grace Period” status on the hotel dashboard.
  • Check OTA extranet configuration to identify and remove any unapproved promotions.
  • Research and resolve any LOSE violations immediately.

Supernova Support + Communication

Supernova Support

    • Each hotel is granted access for one user. If you need to add a new user, or change an existing user, complete the Supernova Add/Delete User Request Form on MGS. Existing users can reset their passwords at https://marriott.supernova.travel/login
    • Refer to the BRG Best Practice Guide and other information available on MGS for any questions
    • Send an email to Rateintegrity@marriott.com for Tier 1 Support for mobile only – if needed
    • Continue to open a ticket from Supernova Dashboard for all other Tier 1 Support inquiries

Communication

    • May 20 – U.S. & Canada Franchise Update
    • Week of May 24 – FMC RM contacts to receive preview of mobile shops in Supernova Rate Parity Scorecard

Operations Update

Franchise Privacy Standard (GPRV-001)

The Global Privacy Office has published a Standard that Franchisees must comply with regarding the collection, use, and protection of Personal Data. The Standard is effective as of May 1, 2021.

Key Components:

    • Standard Overview
    • General Requirement
    • Definitions
    • Privacy Principles for Personal Data
      • Notice and Consent Requirements
      • Collection and Use Requirements for Guest Personal Data
      • Data Minimization, Data Integrity & Data Retention
      • Access and Correction/Individual Rights
      • Security
      • Disclosure
      • Cross-border Transfers & Compliance With Data Protection Laws
      • Accountability & Training
    • Relation of this Standard to Other Standards

Optional Office Hours were held on May 18 to provide additional information and answer questions. A second session will be held during the following time: May 21 at 12 p.m. ET (Join | Add to Calendar).

Both recordings will be posted on MGS.