Marriott International (MAR) is facing growing pressure from hotel owners over how it shares revenue from its Bonvoy loyalty program, as franchisees demand a larger slice of profits generated through co-branded credit card deals, The Wall Street Journal reported Tuesday.
Dozens of owners, representing nearly 1,000 Marriott-branded properties, said in a letter that they were previously led to believe the loyalty program was roughly break-even but now believe Marriott is capturing significant upside, the report said.
Marriott expects fee revenue from credit-card partnerships tied to Bonvoy to rise about 35% this year to nearly $1 billion.
Owners argue they are absorbing the cost of free-night redemptions while receiving lower reimbursement compared with online travel agencies, and are calling for structural changes to the program's payout model, according to the report.
Marriott did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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