Marriott tells me that they are updating their website today to include the new StudioRes brand.
- At most Marriott brands, members earn 10 points per dollar (base) plus elite bonuses.
- At some limited-service brands, members earn just 5 points per dollar (base) plus elite bonuses.
- At StudioRes, it will be just 4 points per dollar (base) and no elite bonuses.
This isn’t a function of lower room rates earning fewer points. That’s already built into the model where points-earning is based on the amount of money spent at the hotel. The lower earning rate per dollar is reflective of Marriott pushing down what they charge owners.
And StudioRes stays earn zero elite night credit. How can that be? After all, a night is a night, right? Already Marriott has Protea Hotels, Four Points Express and City Express where members earn one elite night credit for every two qualifying nights stayed. Marriott encourages members to stay there less because they’re earning less from the owners. But then the program becomes less of a reason to stay there!
- They want owners, and rooms, in order to generate incremental revenue
- They attract owners with ‘low low prices’
- And so they return less to the member staying at these hotels
Credit: Marriott
StudioRes is Marriott’s new ‘basic’ brand that they were literally calling ‘mid’ as a placeholder name. That’s not to be confused with low-end Fairfield conversion brand in the works, Project Mid-T.
Marriott tells potential owners they should invest in StudioRes because,
Marriott mastered the extended stay segment and no one knows more about creating value for owners
Efficient staffing model (no breakfast, weekly housekeeping, 24/7 front desk availability)
Tailored Marriott Bonvoy loyalty program
Marriott CEO Anthony Capuano has said they’ll put ‘net rooms growth’ on his tombstone. That’s the metric he drives. He’s able to sign up more owners with low prices, but forgets that the only thing of value he offers hotel guests is the Bonvoy program. When that program no longer offers rewards that entice customers to stick with hotels that affiliate with Marriott, he no longer has anything of value to offer owners and the owners no longer have a reason to pay Marriott.
Some owners refer to Bonvoy members as “prospects.” Marriott delivers potential guests to hotels, and that’s what the owners are largely paying for. So the value of the program has to be strong enough to deliver guests. Is earning 4 points per dollar – perhaps a 2.4% rebate – enough to convince them to pick StudioRes over other properties?
All Marriott has is the brand, so when it also allows owners to lower costs by ignoring program commitments to elite members it is degrading the brand’s promise – and therefore the value that it sells to properties. It trades short-term revenue for long-term business viability. It’s sad to see what’s becoming of Marriott.
“Bonvoy betrayal”?? Gary, at this point, isn’t that just our expectation for anything they do? You’re absolutely right: It’s ‘sad’ indeed. I just hope the competitors do not follow. Be different! Be bold! Actually treat your guests and members well. Your ‘customers’ are not just the shareholders.
I recall reading some bit about “Over 30 Great Brands” and thinking “No, it’s about a dozen good ones and a shipload of mediocrities”.
The real problem is that at (say) 4 Marriott points and no EQNs, why the [bleep] would I book through Marriott’s portal rather than going via AA, Chase, or even (gulp) Delta?
At some point all the members with elite status are going to go elsewhere.
Why even put this brand in Bonvoy? They could just make it like Bulgari. Exempt from Bonvoy.
Following the rollout of Mid-T, sources tell me they will launch “Low-T”, a new brand targeted at leftists males, like the sad sack who comments here five times on every post.
As a top elite member of Marriott, why would I want to stay at a property that gave me no night credits? I tried once at City Express in Mexico City where 2 nights was required for 1 night credit and said never again (especially when paying the same price as hotels that do earn the night credits). StudioRes is a definite NO for me…never.
At that kind of return they have to win on price alone. Anyone fiercely loyal enough to Marriott to forgo elite nights and just about any points or other benefits is not going to stay at a property in that price range – they’re mid-tier executives that won’t expense anywhere but a full service property. Those shopping on price are just going to pick the best option through an OTA or travel portal so the Marriott brand is going to have a hard time driving an incremental increase in occupancy.
Best I can tell they are trying to compete with AirBNB by offering an alternative for those who don’t like AirBNB’s business model or where local regulations make them difficult. In Europe the Apart Hotel concept does offer lower rates than most regular hotel options in cities like Dublin. Not sure what Marriott’s branding is going to offer in that space though, which is probably a driver in why they are having to charge owners so little and pass along so few benefits to compete.
The whole point of Bonvoy is to drive loyal customers to a property they might not otherwise book. If you aren’t going to get any benefits, why brand as Bonvoy? This kind of brand is competing with Extended Stay America and like Red Roof Inn.
And not having a front desk staffed 24/7 seems like a recipe for disaster. I wonder how much the insurance rates go up if there’s no staffed front desk?
Yup @FNT Delta Diamond, eloquently put.
I feel the same way about Tru and Home2 for Hiltons — they are essentially nonstarters for me now especially when (at least when I’ve looked) the prices are essentially the same as a nearby Hampton Inn.