Agents protest Marriott policy of free WiFi with direct bookings

Agents and agency groups were up in arms with Marriott International last week, claiming that the hotelier's program to supply totally free WiFi to Marriott Rewards clients who book directly amounted to a disincentive to use a travel counselor.
Business analyst Henry Harteveldt stated the move appeared to have been aimed at moving buyers away from online travel agencies (OTAs), which tend to provide low-margin bargain hunters.
"This is Marriott's attempt to woo the brand-agnostic traveler away from an on-line travel firm to one particular of Marriott's channels," Harteveldt said. "They're not targeting a person working with a standard agency."
That reasoning came as small consolation for travel agencies that deliver greater-margin consumers yet located themselves being collateral harm.
"In terms of the common path, it's frightening," stated Alex Sharpe, president and CEO of Signature Travel Network.
John Wolf, a spokesman for Marriott, mentioned final week that the firm created the policy to serve Rewards members who book directly, "especially our Generation X and Y members." Wolf mentioned those buyers have been confused by the reality that they got free of charge WiFi in some hotels but not in other individuals.
"It is not intended to disadvantage any specific channel or companion," Wolf said. "We continue to think that a healthy mix of organization from direct and indirect channels — OTAs and traditional agencies — is the optimal strategy for Marriott."
But best market players warned that the move is a risky one.
“Practically every single business these days wants to have a direct and price-efficient partnership with its prospects and consumers,” said Jack Mannix, an sector consultant, who formerly was head of the Ensemble Travel Group, the Travel Institute and ran AAA's national travel technique and supplier relations. "But, as some other organizations within the business have located, alienating 1 of your important distribution channels can be perilous."
Harteveldt outlined the fine line Marriott was walking with its WiFi policy. Free of charge Web is a advantage normally given to Marriott Rewards elite members, Harteveldt stated, so the hotelier did not want to dilute that by broadening the provide to the agency neighborhood at huge, specially since it has a competing interest in providing its individual hotels a opportunity to make funds on WiFi.
Marriott's new policy applies to complete-service brands Marriott, JW Marriott, Ritz-Carlton, Renaissance, Gaylord and Autograph Collection. Edition and Marriott's pick-service properties already provide free WiFi.
Platinum and Gold Elite members will continue to get totally free enhanced WiFi, a service that enables users to download large files more rapidly and view streaming media such as motion pictures. Marriott Rewards has 47 million members.
While travel agency executives had been unhappy about the new policy, some expressed hope that a solution could be worked out by Jan. 15, when the new policy is scheduled to go into effect.
"The excellent news is … we've got 60 days," mentioned Sharpe, adding that his members book millions of dollars of corporate enterprise with Marriott. He stated Signature has reached out to Marriott, asking to discuss the matter.
"It's wonderful to offer you free WiFi to returning guests," Sharpe mentioned. "I just want to be in a position to book it."
Suzanne Hall, senior director of preferred supplier relationships for the Ensemble Travel Group, mentioned Ensemble, also, had been in touch with Marriott executives.
"We feel this is not supportive of the agency channel," she said, but she added that she was optimistic Marriott would locate a answer.
As an instance of an current workaround, she stated, some Marriott hotels in the Ensemble Hotel &amp Resort Collection provide cost-free WiFi, but she stressed that it is up to the individual hotel.
Lisa Maloney, global project manager of hotel options for Carlson Wagonlit Travel (CWT), mentioned that free Internet is one of the most negotiated hotel positive aspects for the company's corporate clients. "We attempt to negotiate it one hundred% of the time," she mentioned.
That does not mean all customers get it 100% of time, simply because numerous elements come into play, such as size and approach. But simply because totally free Internet is such a frequent benefit, she did not see Marriott's policy as having a significant influence on CWT's customers.
Tom Ogg, co-founder of the Travel Specialist Neighborhood website, mentioned that agents participating in discussions about the new policy pointed out that resort charges normally consist of World wide web anyway. Even so, agencies have been concerned about the implication of a policy that offers any client an incentive to book straight with a supplier.
"We condemn Marriott's strategy and do not function with the brand," mentioned Albert Herrera, Virtuoso's senior vice president of international item. "Our connection is with Ritz-Carlton, and Virtuoso members advantage from being STARS and as such are covered." Herrera's reference was to the Ritz-Carlton system and on-line portal for premier travel agencies.
Stuart Godwin, president of the Leisure Travel Alliance, called the policy a disservice to shoppers who book with agents, as effectively as to agents who "with Marriott's encouragement, helped create and feed the Marriott brand."
Nicole Mazza, chief marketing officer for Travelsavers, stated, "I feel it sends an incorrect message to customers that travel pros could not be needed, when the reality is that their knowledge is invaluable. It is a fact that travel specialists are the most economical distribution for a brand and deliver larger [typical every day prices]."
John Werner, president and COO of the MAST Travel Network, mentioned that Marriott did not have a preferred agreement with MAST but that many MAST members book Marriott properties with several wholesalers and tour organizations.
"This will have an effect on our sales objectives with these suppliers," he said, since some clients may opt to book directly with Marriott in order to get totally free Net.
ASTA weighed in on the matter, as properly.
"The policy discriminates against shoppers who use travel agencies and is not most likely to be well received by them," ASTA CEO Zane Kerby wrote in a letter to Marriott shortly after the firm announced the policy.
"Marriott's strategy to supply cost-free WiFi as an inducement to travelers who book direct with a Marriott brand or via Marriott.com will disadvantage loyal travelers who use the travel agency distribution channel."
Whatever Marriott's reasoning for the new incentive, other hoteliers are not following its lead.
"None of the competitors have jumped on the bandwagon," stated Jim Smith, a travel and tourism distribution and marketing and advertising professional who served as president of GEM, which became Holiday.com.
Hilton Worldwide is "continually examining exactly where we can improve our on-home expertise no matter how our guests book stays with us," stated Blake Rouhani, senior manager of public relations for Hilton Worldwide and Hilton HHonors.
Hilton gives free Internet to Hilton HHonors Gold and Diamond members at hotels with no resort charge and not too long ago introduced a tiered Web pricing program that enables guests to get additional bandwidth.
Hyatt delivers free WiFi to all guests at numerous of its brands, which includes Park Hyatt, Andaz, Hyatt Place and Hyatt House. Hyatt Gold Passport elite members get totally free World wide web access at all Hyatts, even though Stephanie Sheppard, public relations manager for Hyatt Gold Passport, said, "We are continuing to evaluate our offerings."
The timing of Marriott's announcement coincided with its negotiation season with at least some agency groups.
Travel Leaders, whose brands contain the Travel Leaders associates franchise, Tzell Travel Group, ProTravel International, Trip.com and other people, said last week that it could not comment on the story due to the fact it is in "discussions" with Marriott.
Many agents and agencies mentioned they have been baffled by the new policy.
"It's hard to recognize," Sharpe said. "Their campaign is 'We really like travel agents.'"
Marriott's Wolf mentioned that Marriott puts "great worth on its travel agency partnerships. We are constantly communicating with them and will always listen very carefully and respond thoughtfully to their inquiries and concerns."