Updates to Group Preferred Partnership Agreements
Please note that this information will be shared with hotels via the April 11 edition of Weekly Update.
Group intermediaries continue to be an important market segment and focus area for Marriott. Marriott’s Preferred Partnership strategy is designed to grow preference, loyalty and incremental share from top group intermediaries within the scope of Marriott’s Global Distribution Strategy. The following outlines updates to several of Marriott’s group Preferred Partnership Agreements as well as updates to Marriott’s standard group contract clauses.
Preferred Partnership Agreements
Marriott has renewed Preferred Partnership Agreements with three of its group intermediary partners: HelmsBriscoe, ConferenceDirect and HPN Global. These agreements are effective April 1, 2016 through December 31, 2018. These new agreements ensure that properties have:
- Greater negotiation flexibility: Pre-determined business concessions have been eliminated, allowing properties to work with intermediary partners and end-users to determine the most valuable concession package for each unique group opportunity.
- Better advance payment terms for Modern Essential properties.
- Equal access to every sourced opportunity without competitive bias.
- Access to buyers for sales and marketing activities.
- Market share data reports to measure success.
In return, Marriott provides financial benefits to these select group intermediary partners, including:
- Commission (not to exceed 10%, for rooms revenue only).
- FastPay, the centralization of Marriott’s advance commission payment program – 50% of estimated commission at contract signing (inside 24 months) and 50%, or the remaining commission owed, after the program actualizes. Details of the FastPay program can be found on MGS.
Franchised hotels are encouraged to participate in the Preferred Partnership Agreements, and can opt-in to FastPay to centrally manage the required advance 50% commission. There is no cost for participating in the Preferred Partnership Agreements, but participating hotels must comply with their terms. Information on how to opt-in to these programs, along with newly revised Group Sales Agreements (GSA) for ConferenceDirect and HPN Global, can be found on MGS. HelmsBriscoe does not have a standard GSA, but the agreed upon commission clause has been updated and added to the Library of Clauses, 3-3. Also, a specific clause regarding commission to HelmsBriscoe on business booked on behalf of a United States Government or State Owned Entity, was added to the Approval Required Clauses, 3-3a.
The Preferred Partnership Agreement with Maritz/Experient is still under review at this time.
Commission Clause Updates
Existing commission clauses for the standard Marriott GSA have been updated and should be used for all new, commissionable business effective April 1, 2016. The updated clauses clarify for intermediary partners and customers the components of room revenue that are commissionable versus non-commissionable. The clauses are available for franchised hotels globally.
In addition, three new “Rooms Outside the Block” clauses have also been added to the Approval Required Clauses, 3.4a – 3.4c. These clauses protect hotels from guaranteeing audits of their inventory and commission payments on group rooms booked outside of the contracted group block. The new clauses will help provide the hotel flexibility based on the needs of the hotel and the customer.
For more information on guidelines and processes for group intermediary commissions, please review Marriott’s Group Intermediary Commission Standard.
