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October 22, 2021 Owner & Franchise Webinars, Management Company Webinars, FMC Weekly Webinars

October 21, 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, October 21 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:

Sales, Marketing, & Revenue Management Update

Travel Trends

  • Industry-wide on-the-books room nights stayed flat vs. 1 week prior and occupancy improved in nearly all markets outside of the Americas in August.
  • Canada’s resident sentiment by province is improving week-over-week, with multiple provinces reporting increases in “I Feel Safe to Travel” (Alberta, Atlantic Canada, BC and Manitoba) and only 1 reporting decreases in “Receptivity of Advertising” (Manitoba).

Marriott Bonvoy 2022 Reimbursement

Post-Covid | Owner-Facing Efforts

To mitigate the business effects of COVID on owners, Loyalty made compensation adjustments. During the pandemic, Loyalty compensated ~$125M in financial relief to Owners primarily through increased base rates. 

    • One-Time Base Rate Adjustment (August – December 2020): 6,700 Hotels Benefited
    • Redemption Rate Time Frame Adjustment: 6,000 Hotels Benefited
    • 2021 Base / Premium Rate Adjustment: 6,400 Hotels Benefited
    • 2021 Base / Premium Rate Adjustment Extension: 1,700 Hotels Benefited

2022 Award Reimbursement Model

We are returning to our business-as-usual process for base rates and reimbursement tier changes, with a few changes to help hotels that were most impacted during the pandemic and some restraint for hotels that recovered.

  • Base Rate and Redemption Policy Based on Trailing 12 months through June 2021
  • Unrecovered Hotels: Falling ADR and Penetration
    • Base Rate Floor of –15% vs. 2021
    • High Redemption Hotel (HRH) soft landing for hotels falling out of Redemption Policy
    • Long Standing HRH Consideration
  • Recovered Hotels: Increasing ADR and Penetration
    • Increasing Reimbursement policy as per normal BAU
    • Base Rate Reimbursement held flat to 2021
  • Incremental Investment in Owner Reimbursement forecast at $150M

¹Quaifying timeframe is published in the Loyalty Program Guide and is subject to change

Enhanced Reservation System (ERS)

  • Progress: By positioning hotels to lead with their most profitable assets, the Enhanced Reservation Solution (ERS) is enabling recovery and the future of attribute-based selling.
  • Plans: While we are pausing new deployments in 2022, inventory changes, reporting, and maintenance will continue to help your teams maintain a forward-thinking reservation solution that benefits guests.