Marriott CEO Arne Sorenson is known for his operational chops, but he’s also proving to be a marketing maestro. The decision to combine all of Marriott’s brands major and minor under one cleverly named awards program Bonvoy has led to a significant increase in online bookings.
Sorenson recently commented, "Our guests are increasingly booking online," further adding, "Our direct digital channels leveraged the popularity of Marriott Bonvoy and offered the lowest cost per reservation. Those channels -- Marriott.com and Marriott mobile -- accounted for 32% of our room nights booked in the third quarter, [which was] over 400 basis points higher year over year."
Direct channel bookings decreases Marriott’s reliance on online travel agents (OTAs) to feed the hotel company with customers. Indeed OTA bookings declined nearly 100 basis points year over year.
Marriott has been encouraged by the comments they have been receiving from customers. Sorenson observes, "Social media feedback about the program has become decidedly favorable," he continues, "Marriott Bonvoy is on a roll. Global room revenue from Marriott Bonvoy members is up 12% year to date over the last nine months, and members contributed 52% of systemwide room nights, a 320-basis-point increase year over year."
Most telling is the fact that Bonvoy membership has grown by 12 million in the past nine months – total membership now stands at 137 million. Interestingly, approximately 40% of the increase was driven by Chinese consumers.
