Marriott’s owners say Bonvoy’s billion dollar machine shortchanges them on award nights. However the fight ends, your points are likely to pay for it.
Owners may have been surprised to see just how profitable the company’s affinity card has become. Learning that Bonvoy has become a billion dollar profit engine while their reimbursement for award nights remained modest changed the temperature of the conversation. The owners now want compensation for loyalty stays at least on par with what they collect from online travel agencies like Expedia, plus more visibility into the program’s books.
This is the same story playing out across hotel loyalty right now. More cardholders means more points printed, more points printed means more redemptions, and more redemptions mean someone has to absorb the cost of all those free nights. Hilton solved it this year by raising award prices and saying nothing. Marriott’s owners are trying to solve it by sending the bill back to corporate.
A great solo travel tip spotted this week on Live and Let's Fly.
