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June 11, 2021 Owner & Franchise Webinars, Management Company Webinars, FMC Weekly Webinars

June 10, 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, June 10 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 | June 10, 2021

U.S. Only | Implement Revised F&B Minimum Requirements Effective July 1; Review Updated Resources
F&B minimum requirements for hotels in the U.S. have been updated for all brands to address guest expectations and will be included in the July 1 Self Audit program. Brands with F&B Elite benefit offers must ensure they are offered to Marriott Bonvoy Elite members as described in the Benefits at a Glance resource.

Hotels with USD Bank Accounts: Opt In by July 1 for ACH Auto Pay Process for All OFB Invoices or CTAC OFB Invoices Only
As communicated on May 27, beginning in July, CTAC charges will be on a separate Owner & Franchise Billing (OFB) invoice from all other program and services charges. These new invoices will be billed every other week and will be due upon receipt. Continued on-time payment of CTAC invoices will ensure proper, accurate and timely payment of third-party channel commission. Hotels with USD bank accounts may choose to enroll in the automated ACH debit process for all OFB invoices or only the CTAC invoices. For CTAC invoices, enrolled bank accounts would be debited every other week after CTAC billing. If enrolled in all invoices, bank accounts would be debited on the 20th of each month in addition to every other week for CTAC invoices.

Sales, Marketing, & Revenue Management Update

Topline Trends

  1. A pandemic record breaking 8-in-10 Americans now say they are ready to travel.

  2. The demand for summer travel continues its positive trend.

  3. More Americans than ever during the pandemic recall seeing travel-related advertising.

Top B2B Customers’ Office Openings Survey (583 BUYERS Responded: RESULTS AS OF June 2, 2021)

What is your best estimate of when company offices will be open in a manner that will impact travel to our hotels by region?

    • 41% reported offices fully or partially open (Greater China 63% & APEC 54%)
    • 39% expect to open this year (2021)
    • 31% expect to open in the September-December 2021 timeframe (Europe 37% & United States 36%)

What is your best estimate on office-related travel volume levels as compared to 2019 by region?

    • 6% reported volume would be 51%+ of 2019’s levels in 2021 or upon re-opening (Greater China 10%)
    • 31% reported volume would be 26%-50% of 2019’s levels in 2021 or upon re-opening (Greater China 58% & United States 30%)
    • 63% reported volume would be 25% or lower of 2019’s levels in 2021 or upon re-opening (Europe 77% & CALA 76%)

Let’s Travel: Mid-Year Wholesale Bundled Promotion – Package Offer

Objective: Hotels have the option to participate in a wholesale bunded package campaign with key partners who receive rates through Marriott’s Tour Operator Dynamic (TOD) and EPS channels.  There will be an organized approach to participation, similar to the solicitation process for Marriott regional promotions, which will allow our partners to help us market discounted package (bundled) rates through these channels.

Overview: Reach over 100 domestic and international connected tour operators and over 69,000 leisure wholesale partners and agents that work through Expedia Partner Solutions (EPS) by loading one (or more) of these offers:

1. Offer up to a 30% savings when booking a wholesale bundled package (All brands)

2. Offer $50 credit per night with 3-night minimum stay (Resorts or hotels that deem they can benefit)

Hotel Action Needed:

Cost: No cost to participate.

Timing:

    • Booking Window: June 21, 2021 – July 31, 2021
    • Promoted Stay Window: June 21, 2021 – Oct. 15, 2021

Mobile Bookings Will Be Added to Supernova Hotel Dashboard

As of JUNE 1, Supernova began shopping Booking.com, Expedia and Agoda mobile apps. 

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”

FMC Reporting

    • May 27: Data provided for mobile shops for Booking.com, Expedia and Agoda (April)
    • This is a baseline report to understand the starting point of your hotels

Finance Update

Centralized Travel Agency Commissions (CTAC)

CTAC (Centralized Travel Agency Commissions) is Marriott’s proprietary system facilitating:

    • Travel Agency Commissions
    • OTA Commissions
    • TMC Preference Payment Program
    • Group Commissions
    • FastPay
    • TBPM & Affiliate Programs

CTAC Commission Process Change

    • As we have previously communicated, beginning in July, CTAC charges will be on a separate Owner & Franchise Billing (OFB) invoice from all other program and services charges
      • These new invoices will be billed every other week and will be due upon receipt
      • The OFB email link for invoice retrieval will continue to be sent to the invoice recipient noted in the OFB system
    • To help streamline this new process, ACH Autopay will be made available for these invoices to hotels with USD bank accounts
    • Hotels with USD bank accounts may choose to enroll in ACH Autopay debit process for all OFB invoices or only the CTAC invoices
    • For CTAC invoices, enrolled bank accounts would be debited every other week after CTAC billing
    • If enrolled in all invoices, bank accounts would be debited on the 20th of each month in addition to every other week for CTAC invoices

Please use this link to access to the ACH Enrollment Forms on MGS

Renovation Update

Temporary Renovation Investment Program (TRIP)

    • In recognition of the capital challenges experienced as a result of COVID-19, Marriott has developed an interim change to the cyclical renovation program.                                                   
    • Temporary Renovation Investment Program (TRIP) builds on previous extensions.
    • Applies metrics such as GuestVoice and property effective age to place hotels into levels that further extend or reduce the scope of renovations.
    • Following successful renovations, owners will receive an appropriate badge on Marriott.com.

Performance Metrics Drive Renovation Level

Renovation deferrals and reduced scopes are based on objective hotel performance metrics including:

    1. 2019 GuestVoice product: Lobby
    2. 2019 GuestVoice product: Guest Room Overall, Guest Room Cleanliness, Guest Room Bath
    3. 2019 ITRec
    4. Product effective age (7-9, 10-11, ≥12 not eligible for extensions)

Next Steps + Resources

Now What?

    • Owners and franchise management companies will receive a communication on June 11 with hotel levels
    • Speak with your Account Executive or Franchise AVP to confirm hotel timing
    • Partner with Global Design on custom Level 2 and 3 Renovation Scopes

Learn More:

Operations Update

Residential Amenities

F&B

  • Understand correlation between with F&B GSS and ITRec and impact on Leisure guest expectations
  • Execute upon streamlined guidance and F&B requirements effective July 1

Executive Summary

  • 76% of MSB hotels are reporting >50% occupancy
  • Most local dining regulations (except in Canada) have been relaxed, including previously heavily restricted areas like NYC, LA, SF
  • Summer Leisure Guests boosting occupancy, having high expectations for their “revenge travel” trips
  • Competitors are expanding services

POSReady7 Remediation

  • MICROS Oracle Workstations 2015 or 5A running the Microsoft Windows Embedded 6.1 POSReady7 operating system will reach end of life on Oct. 12. Hotels with impacted workstations may select from two options, based on their specific hotel needs, in order to maintain security compliance and avoid loss of service.
  • Hotels that do not purchase the ESU by July 12 will be required to purchase and install new POS workstations before Oct. 12, 2021.
  • Identifying Workshops

    • Action Required – Needs Replacement

      • Power light on the lower right will be green or white
      • Branding with Micros logo ONLY
      • Later models may have Micros/ORACLE branding

    • No Action Required

      • Power light on the lower right will be blue or green
      • Branded with MICROS/ORACLE logos
  • Option 1: Extended Security Update (ESU): Hotels wishing to purchase an ESU must do so for each workstation they have on property no later than July 12.
  • Option 2: This timeline represent the estimated duration to complete this effort. Hotels choosing to replace their hardware by Oct. 12 should plan accordingly (start times will vary, based upon vendor availability).
  • Hardware Replacement Costs: The following outlines the high-level cost estimate and hardware requirements for replacement.  These are estimated costs and subject to change.
  • Recap + Next Steps:
    • Key Dates

Hotels wishing to purchase an ESU must do so for each workstation they have on property no later than July 12. 

Hotels failing to purchase an ESU or replace their hardware before Oct. 12, 2021 will be blocked from the Marriott network and lose functionality. 

    • Resources + Communications

Hotels received details via the June 3 U.S. & Canada Franchise Update.

Franchise management company Operations contacts of in-scope hotels received a direct communication that included the list of in-scope hotels, by account, and provided links for additional information and ordering.

For additional guidance and estimated workstation costs refer to the GPOS MGS page.