Business Transient (BT) Booking Cost Update
As communicated in March, beginning in January 2017, hotels in the United States and Canada that do not participate in Marriott’s U.S. Area Sales Organization will be charged an annual BT Booking Cost. While we continue to evaluate and enhance our overall strategy, we have determined that the cost will change from a $2.75 cost per paid and stayed room night to an annual flat fee based on three tiers of BT room nights. This new format will provide owners and franchisees with more predictable and transparent costs, while effectively resourcing the Area Sales organization to meet growing demand and sell to customers across the entire Marriott portfolio.
Under this new fee structure, there will be three tiers of production, as shown below. One year of actual production (e.g., Dec. 25, 2015 – Dec. 24, 2016) will be used to determine which tier and associated cost the hotel will incur for the following year.
| Tier 1 | 0-400 room nights | $1,300 ($108.33/month) |
| Tier 2 | 401-1,300 room nights | $2,200 ($183.33/month) |
| Tier 3 | 1,301+ room nights | $3,100 ($258.33/month) |
Hotels that do not have production data for the prior year are included in Tier 1 and therefore pay the minimum of $1,300 annually, and if applicable, will move to the appropriate tier the following year. Hotels will be assigned to Tier 2 or 3 based on the number of room nights over 400 that meet the following criteria:
- The account is Area Sales deployed (Mid-Market or Prospect)
- The account bid has been solicited and accepted by the customer in MarRFP
- All paid and stayed room nights associated with any rate codes falling within the account’s cluster code will contribute to a hotel’s annual room night total and assigned tier.
The BT Booking Cost will be charged to hotels on a monthly basis. The BT Booking Costs will not change during the year, even if the hotel moves into the next tier. Costs will only change in January each year depending on the hotel’s BT applicable room night totals. Hotel- and portfolio-level reporting with BT Booking Cost detail will be provided starting in 2017.
We appreciate your feedback on this topic and feel strongly that the revised fee will provide you with more predictable and transparent costs, while allowing Marriott to effectively resource the Area Sales organization. As always, we thank you for your partnership and welcome your questions at any time.
