A Marriott hotel general manager reveals what she really thinks of the Bonvoy program’s top elite guests, and in so doing offers a window into how the chain is undermining its business.
Marriott’s only enterprise value is the Bonvoy loyalty program. They don’t own the hotels. Hotel owners affiliate with Marriott brands to get customers who choose them because of Bonvoy. However, they don’t want to contribute into the program.
- Individual hotels want to take customers from the program
- But spend as little as possible on each guest when doing so
But when each hotel disappoints guests, the value of the program falls. It stops delivering customers to hotels, and Marriott loses all value.
That’s what brand standards and enforcement are for. Marriott has to require hotels to honor benefits, and back that up with financial cosequences if they don’t. Under the current CEO, though, who says they’ll ‘put net rooms growth’ on his tombstone, they’ve done everything possible to be friendly and low cost to owners.
They’re milking the Marriott Bonvoy program for revenue now, degrading it and allowing it to deprecate. That gets owners signing on, and doesn’t push any of them away. It means more earning from more rooms now. But it risks all of their revenue in the future.
The tagline of the classic Kevin Smith movie Clerks was “just because they serve you doesn’t mean they like you.” And it’s instructive to see the comments of this Phoenix-area Marriott hotel general manager at a franchised property, responding to a social media post from a Bonvoy Ambassador member who was frustrated at receiving zero elite recognition at Gaylord Palms in Orlando.
You’re just a number at every Marriott you stay at.. We do not care that you are “Ambassador status” because 98% of you got that status due to your job. Congrats. You’re not royalty. Gross.
This is common sniping you hear from some customers, that you’re just earning status with ‘other peoples money’ and thus it is somehow not deserved. That misses the point entirely. If you’re directing stay resources, it doesn’t matter the ultimate source of funds. You’re a valuable customer driving repeat business, and the hotel chain cares about that business.
Managed business travelers generally have a choice in what hotels they stay at. That’s even more true than it is with the airlines they fly. Their company’s travel contracts might specify the airline they have to fly, so status benefits at an airline may not be influencing their choice of carrier (although even there, business travelers have long gamed their systems to stick with a preferred airline even when it’s not their employer’s choice or it’s out of policy on a given trip).
At hotels, even where there’s a preferred chain, with Marriott there are usually multiple properties in a market – and the traveler can choose. Since each hotel is often separately owned, even if ‘Marriott’ is getting the business that hotel still needs to provide a good experience (and the chain overall does as well, or risk losing the contract).
This also represents outdated thinking about who your travelers are. Managed business travel isn’t the same as it was pre-pandemic.
- While ‘business travel is back’ is a common them, it’s also wrong. It may be 70% – 75% back overall. It certainly never returned to trend.
- The number of business travelers is back, but each traveler on average takes fewer trips.
- Traditional out Monday, back Thursday travel by the consultant class is gone. You no longer need to fly out every week to be on-site with clients like that. They may not be in office every day!
The business travel that’s most robust is small businesses, and entrepreneurs. They’re closest to the money that’s funding their trips in any case.
Regardless, this general manager’s view underscores just how little she – and the franchise ownership group – values Marriott’s best customers. And that’s a bad sign for the future value of the company.
@Gary: Has Marriott ever responded to your criticism (i.e. your consistent one that they are all about the room count and side too readily for their own — equity — good with franchisees in the event of a diagreement with a customer)?
I think the stock photo at the top of this article shows a Westin. Is it the photo or are the lampshades different?
@ Gary — Clearly, this person needs a different job. Clearly, I am genius for not staying at Marriott for the past 8 years.
I am currently Ambassador, and I could have made Ambassador for next year if I tried a little harder, but it is simply not worth it. Travelled several times this year, and never once got a little acknowledgement at any hotels due to status, and never got any kind of upgrade. Talked a couple of times with the personal Ambassador concierge, and they were never able to do anything for me that I couldn’t do myself.
Ambassador status is a rip off considering the harsh requirements.
Interesting take, Gary, and I’d agree completely. As a person who travels for business for 80-100 nights/yr, and still has 15 years to go, I would like to think that my loyalty would be worth something, given that I also influence team members to stay at my selected hotel (4-10 folks usually). Don’t even get me started on the hotel bar tab and meals, that could be the GDP for a small country.
I’ve got LT Titanium, and as a frequent traveler, my expectations are low (I’ve seen all the service failures and unless it’s grossly negligent, I’m low maintenance and provide grace, especially to frontline staff). To your point in the article, I have been Bonvoyed by Marriott so many times now, that the Marriott Brand standard means very little to me. There is NO differentiation. Marriott used to get 100 nights/yr from me, but now Hyatt/independent hotels get 75 nights, and Marriott will get 25. (again, multiply that influence by 4-10x for members of my team).
Example: I recently stayed at the Gwen in Chicago. The nickel-diming on destination fees and failure to honor the Marriott brand commitment for breakfast was annoying to the point that I just stopped staying there (despite my local office being literally across the street). It’s not about the money (most properties are in similar price ranges)….it’s about the experience, consistency, and not feeling like you’re being fleeced. So, I no longer patronize the Gwen, and in December, I was in Chicago with my team for 3 trips, a combined 20 nights, ran up a ton of expenses, equivalent bar tabs, etc, and Marriott / the Gwen saw none of it. We closed our deal and there was $50K in hotel/meals/incidental that went to the Hyatt a few doors down.
I still don’t think that what I choose means much to Marriott. One would think that the corporate finance folks and their spreadsheets have already plotted this out (i.e. where is the point of profit maximization, given a level of loyalty ‘breakage’)
For the Marriott person’s opinion of the the traveling public, the culture of entitlement is an issue. I see that firsthand and it makes us all look bad.
This GM should be named and shamed. Who are they? Who do they work for? They probably work for Aimbridge. I guarantee you they didn’t go to hotel school or study hospitality. They’re probably just someone who worked their way up from the front desk. They have zero business managing any customer-facing business.