Marriott Rewards Loyalty By Paying You Less — Capital One Shopping Shows Elites Get Smaller Rebates

If you have Marriott Bonvoy status, you’ll be rewarded less for your stays. That’s the message from Capital One Shopping.

It’s not exactly that Marriott values6 nonmembers more than elites. Marriott is willing to pay more to acquire a guest that it believes it does not already ‘own.’

  • Capital One Shopping’s Marriott page separates “Marriott Bonvoy Non Member or Member Consumed Stay” from “Marriott Bonvoy Elite Member Consumed Stay.”

  • The exact percentages move around, but Marriott pays out more to Capital One for non-member and base member stays than they do for bookings made by elite members, and so Capital One rebates non-members and non-elites more for those bookings.

It’s awkward for Marriott that Capital One displays this. Most booking portals that offer rebates like this display a single, lower amount. Capital One is paying out (at least close to) as much as possible, and show displays the distinction since it matters for what they receive and therefore what they can afford to pay.

Marriott sees an elite stay as less incremental. They promote to hotel owners that Bonvoy members “cost less because they book through our lowest cost channels” and says affiliate and rebate sites are part of how they grow those direct channels.

Once someone is elite, Marriott sees far less reason to pay a bounty to get a booking it thinks it might have gotten anyway. Plus, the elite guest costs more if only for the bonus points that will be earned on the stay.

Marriott is happy to spend to acquire a nonmember or basic member. It is much less happy to spend to buy back an elite it already trained to book Marriott.

Elite status does not make you more valuable to Marriott at the point of sale. That’s because Marriott admits in tis structure that they see you as more captured. Elites stay more, spend more, and fill more rooms. But they don’t want to pay third parties much to reacquire people already in their funnel.

This undercuts the loyalty story that (1) elites are Marriott’s most prized customers [they will pay less for those bookings] and (2) that they reward elites more [here, they’ll literally reward those customers less]. Once you are elite, Marriott literally takes you for granted.

Of course they aren’t exactly alone in this – the example may just be the more clear-cut and egregious. The tweet mentions the old Northwest ‘zone discount certificates’ where they gave you higher prices if you lived at a hub. American Airlines used to regularly have discount codes. Those discounts were greater outside of hubs. And airlines will usually pay higher commissions for tickets originating outside of their hubs (or at least outside of non-competitive hubs like Dallas-Fort Worth, Charlotte, Atlanta, Minneapolis). American used to give upgrade priority to customers it had to compete for! Hub captives were lower on the upgrade list: connecting itineraries were a tie-breaker after elite status, and these customers were designated with a “T” on the list.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. @Peter — Perhaps, AA Hotels is the better booking platform, in-general. Who needs Bonvoy points. And they rarely honor benefits for hotel elites anyway.

  2. Bonvoyed.

    (I’m staying at a Marriott for the first time in 11 years this weekend – wish me luck!)

  3. This kind of dynamic of lower (or no) cash-back for hotel loyalty program members has previously existed with Hilton’s provisioning of cash-back via some other cash-back portals. When I first saw that Hilton was hostile more to its elite members than to non-program members, that was all I needed to know about where Hilton was going to be going with elite status benefits — and this was years and years before Hilton did its domestic gutting of the Gold/Diamond breakfast benefit.

  4. @L737 — It’s a bit of a rat race. The constant devaluations, failures to uphold listed benefits, random fees, etc. it all really starts to weigh on us. With Marriott affiliates, I always double-check the actual invoice at the front desk before checkout; like, don’t rush that. They try to throw in things. “$55 for parking? I didn’t even drive here! I took an Uber!” And it’s far easier to settle that before you leave than having to call their accounting department that’s only open 2 days a week for 2 hours at a time with some guy named Gus who doesn’t wanna help correct their greedy mistake. *deep sigh*

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