Marriott has announced that they will soon offer 2,000 home premium rentals in more than 100 destinations, providing members of Marriott Bonvoy access more accommodation options.
The biggest threat in the hotel industry
Much like the taxi industry has to face a lot of competition from co-services like Uber, the hospitality industry faces a lot of competition from home sharing services like Airbnb.
It is interesting to see how the hotel industry is interacting with this trend. Many groups of hotels have remained on quiet radio when it comes to sharing a home, while others have actually invested in home sharing companies.
Houses & villas by Marriott
Next Week Houses & villas by Marriott Will launch, which will be a home rental initiative 2,000 premium and luxury homes located in more than 100 destinations across the US, Europe, the Caribbean and Latin America.
This will enable members of Marriott Bonvoy to earn and redeem points for a wider range of accommodation options.
This new plan is an extension of the trial that Marriott launched in 2018, when Marriott introduced a tribute to its portfolio of homes. They found some interesting trends based on this:
- Almost 90% of the guests invited were members of Marriott Bonvoy
- Over 75% of the people invited were to travel, or with friends and family
- The average guest spent more than three times as long as they would stay for a regular hotel
What a home sharing does for Marriott
Homes & Villas by Marriott will add nearly 40 more leisure destinations for members of Marriott Bonvoy to earn and redeem points at. Marriott gives the following examples:
- The cottage has four bedrooms on six acres of private California wine country
- Six-bedroom villa in Sorrento, Italy with an endless pool overlooking the Mediterranean and a wooden pizza oven
- The Anguilla Ocean Villa with private beach and personal and household staff
- An 18th-century 18th-century Irish castle with a private lake for sailing and fishing
- A six-bedroom London house with a children's playroom and a climbing wall
Marriott launches homes & villas by Marriott International with property management companies to choose that they already manage these homes, including TurnKey Vacation Rentals, LaCure, Lloyd & Townsend Rose, Veeve, London Club Club, Mainsail Accommodation, Conchal Reserve.
How to Order Houses & Villas by Marriott
Starting next week you can order homes & villas by Marriott properties directly through their website, which homesandvillasbymarriott.com.
Furthermore, when looking for accommodation on marriott.com for three nights or more places with home inventory, the Marriott website will provide a link to this option as well.
Marriott is still deciding how to sell homes & villas by Marriott through other channels including Marriott Bonview App and travel consultants.
Earning & Revenue points Marrivoy Marriott for homes
Members of Marriott Bonvoy will be able to earn and redeem points for sharing the home stays. While the redemption rates have not yet been shared, I suspect they will be using an income-based system, and I doubt that it will represent a very good deal.
Instead the value here comes with the ability to earn points for a stay, in my opinion. Members of Marriott Bonvoy will earn five points to the dollar in these assets, And it's like members earn points for other stay-stay properties, although that's half the number of points earned at most Marriott properties.
Members will also receive bonus points based on elite status, and elite members will also receive an elite guaranteed gift of comfort or special points.
Is it really a big deal?
In general I think it is wise for major hotel groups to recognize home sharing as a concept, since it is something that is here to stay. So I think it's Marriott's smart initiative, as friends will be able to earn and redeem points for more experiences.
However, I'm not sure that these partnerships will be a game changer that some people offer they will.
it's important to remember:
- Marriott does not invest in any joint business existing at home
- Marriott has no home sharing expertise
- Marriott is not launching their home sharing business
Instead it is a marketing partnership, in which Marriott is white labeling what other companies are doing.
I would guess that all they really do here is take a commission on what you book through them, and they offer you some rewards in return. It's a win-win-win, because home-sharing companies get more business, and Marriott looks like they're into a trend, and members of Marriott Bonvoy can earn points.
But it's not like it actually changes anything with a co-home, apart from opening it up for more eyes that would otherwise simply consider hotels.
On the loyalty front, the ability to earn five more points per dollar spent compares to a cumulative return that can make it worthwhile.
At the same time, at a certain level I have to imagine the cost of all this is delivered to consumers quite directly – the company's co-management and management takes a cut, and probably Marriott is taking a cut, so money should come from somewhere.
What do you think – does Marriott cooperate with a home company, game changers, or is it just a positive but not a significant development?