Announcing Annual Marriott Rewards Hotel Category Changes and New Points Expiration Policy
Over the past several years, as I have communicated to you, a trend of reimbursement revenues to hotels outpacing the funding received by the Marriott Rewards program has emerged. While important changes to the reimbursement policies, which were communicated to you last month, will help to protect program integrity, adjusting hotel categories is part of the expected annual changes. In addition to this annual news, next week, the program will announce a member-facing change of which you should also be aware.
Annual Category & Inventory Control Dates (ICDs) Changes
As with most major hotel loyalty programs, Marriott Rewards reviews hotel categories in Q1 each year in order to make system-wide changes based on the average reimbursement rates at all hotels. In 2014, we moved 27% of all hotels, either up or down a category level. This year, we are moving 27% of hotels up and 9% of hotels down a category level, globally.
On Thursday, February 26, Marriott Rewards will announce which hotels are changing categories as part of its annual review. The changes are effective for all redemption reservations booked on or after March 19, 2015. The Marriott Rewards category award chart will remain unchanged and the points values required at each category level are not changing. At the same time, available ICDs for hotels will be adjusted. In light of the 2015 reimbursement changes, we also want to provide hotels additional flexibility to manage redemption demand – approximately 23% of hotels will receive an increase in ICDs.
Hotel categories are based on each hotel’s overall average reimbursement rate (total reimbursement revenue received divided by total redeemed nights). Hotel category changes will impact the points required by members to redeem at your hotel, but do not impact your Marriott Rewards annual blended reimbursement rate or reimbursement policy.
Other Program News – Points Expiration
In addition to the news of hotel category changes, on February 26, the program will announce to members its Points Expiration Policy. Starting February 1, 2016, members who do not have qualifying redemption or earning activity in the prior 24 months will forfeit all accumulated points. More information on this announcement and the policy will be available beginning February 26 via https://www.MarriottRewards.com/pointspolicy. This change in program policy will help to stabilize the program financials.
Key Upcoming Dates
- February 24, 2015 – Marriott Rewards to announce 2015 Category and ICD changes to hotels
- Email delivered to impacted hotels via contact listed in HPP
- Email delivered to impacted hotels via contact listed in HPP
- February 26, 2015 – Member Notification of Hotel Category Changes and Points Expiration Policy
- Email delivered to Marriott Rewards members
- Posted on MR Insiders (Marriott Rewards’ Social Forum) & FlyerTalk.com
- A complete listing of hotels moving a category will be made available to owners and franchisees on MGS
- March 19, 2015 – Hotel Category & ICD changes to be updated across all touch points, including Marriott.com and MARSHA. In addition, HPP will update ICD screens to reflect each hotel’s allowable ICDs for 2015-16
- Please note: Available changes for ICDs were reset on January 1, 2015 to four (4) changes for the upcoming year
- February 1, 2016 – Points Expiration Policy goes into effect
For more information and answers to some frequently asked questions, please review the FAQs.
Best regards,
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| Liam Brown |