ALE Solutions Program Update
SS/ES Franchisees | ALE Solutions is an insurance intermediary based out of St. Charles, Illinois. The majority of insurance companies outsource and utilize insurance intermediaries to handle displaced policyholders. When a policyholder is displaced from their home, they have coverage to stay elsewhere while their home is being repaired and ALE Solutions takes care of that placement for the insurance company. ALE Solutions also handles adjuster placements during minor- and mega-catastrophes for some insurance companies.
In 2015, Marriott and ALE Solutions partnered to streamline the booking process. We entered into a business relationship that loaded non-last room availability (NLRA) rates for all Select Service & Extended Stay hotels, with a slant toward long-term stay properties. We would now like to share an update on ALE Solutions’ performance to-date, as well as developing trends and recommendations for the remainder of the year.
Current program summary & performance results:
The ALE Solutions Marriott global “opt-out” Program (ALE Global Solutions Program) loads two distinct ALE-labeled NLRA rate programs:
- 15% floating discount, or
- 5% discount with 10% commission.
The intent of this yieldable program was to put Marriott-branded inventory on the shelf and make it easy for ALE Solutions and their client policy holders to select Marriott-branded hotels – thus winning the business. Through May 2016, Marriott’s ALE Solutions business increased 17.5% (rooms) and 28% (room spend), and the average length of stay remains well over 30 nights at 47 nights. Additionally, all data and feedback indicates we will continue to see strong year-over-year production for the rest of 2016.
Evolving trends:
ALE Solutions is seeking to increase the value of their program. As such, they have been actively engaging in the following activities and dialogue:
- Contacting properties directly to encourage them to opt out of the Marriott-endorsed and centrally-loaded ALE Global Solutions Program.
- ALE Solutions desires more properties become part of their ALE ‘Preferred Partner Program’ which requires the following:
- LRA,
- 10% discount,
- 10% commission,
- one-bedroom suites, and
- 6 p.m. cancellation policy.
- ALE has recently begun enforcing a “no visit” policy for any property or property representative that does NOT agree to participate in their “Preferred Partner Program”.
- ALE Solutions desires more properties become part of their ALE ‘Preferred Partner Program’ which requires the following:
To that point, our performance data does not support that participation in the ALE Preferred Partner Program will increase room night production. ALE has also confirmed that in the majority of cases, the policy holder typically chooses which hotel is selected.
As a result, our strong recommendation is that properties continue supporting the Marriott ALE Global Solutions Program (15% floating discount or 5% discount with 10% commission). We understand some markets & hotels will need to review options where it makes sense based on business conditions.
The Extended Stay Sales team, led by Tony Bonanno, Global Account Director, and supported by Kara Petersen, Account Manager, continues to look for ways to drive high-value business, like that of ALE Solutions, into Marriott-branded hotels. This team has compiled a great resource on how to leverage our agreements with Catastrophe Lodging & Displaced Homeowner Accounts. This document provides tips and tricks for leveraging these agreements to partner with ALE Solutions and other companies that utilize long-term stay and modern essentials properties. You can find this resource on the Modern Essentials and Extended Stay Sales page on MGS.
Please feel free to reach out to Tony or Kara if you have any questions.
Thank you for your continued support.
