Marriott’s New $100M Cost-Cutting Strategy: Changes Coming To Your 2025 Stay

[cubigbird]

An interesting article from View From The Wing:

Marriott’s New $100M Cost-Cutting Strategy: Changes Coming To Your 2025 Stay - View from the Wing

They're making changes so that owners don't have to spend as much, but they've reassured investors that this won't come out of their end at corporate. That means coming out of the guest experience. And they're cutting costs across their own operation, too. I don't see Marriott getting better for...

viewfromthewing.com

 

[WorldT]

That would be Marriott on the hotel side.

 

[cubigbird]

Correct. That’s why I posted it in the vacation travel information forum and not in Marriott or Vistana timeshare forum.

 

[jp10558]

Does anyone else get the feeling that Marriott may be coasting on older brand recognition? My view is perhaps Skewed by this forum, but most of the Marriott changes have been generally seen as negative here, and I tend to agree. Hilton hotels have generally been positive - Aspire card actually is some nice upgrades added this year, pulling SLH and contracting for free nights to work there and points values that aren't "insane" even if high end, improvements in status offers (not just water, now chocolate, coke, and some other options at check-in) and prices aren't up over inflation noticeably, and points values seem largely the same.

The problem for Marriott is their rewards were already less compelling all the way back in 2008, but if the experience falls too much - especially if people start thinking the status perks aren't there and they can't trust brand standards - hotels are otherwise a commodity. Expedia, Priceline,Booking.com you can easily just book a cheaper hotel, and I have to imagine not just Hiltons are going to be "Good enough" for "random, no status stay", so they've got to look at the pricing from IHG, Wyndham, and others. This happens on the high end too - TravelZoo will hook you up with fancy discounted local hotels if you don't have any reason to stay with a brand in the bigger cities. And I don't think Marriott wins on price.

That all said, I also do think I continually see some stuff that has to cost money that I question how many guests even use, and of those who use, would choose to stay somewhere else because it was gone.

My list to remove for cost savings, from what I guess are least controversial to most controversial are:

• Alarm Clocks - I've only used them for easy USB charge ports some have. Otherwise they get in the way of my CPAP or cell phone. I imagine EVERYONE just uses their phone as an alarm clock now.
• Phone - only usecase I've seen since 1996 or so is to call the front desk, but the apps have text the front desk or call it now so...
• Cable TV - Once Hilton introduced the "use your own Netflix" and using HDMI cables that can plug into my laptop - the use case is met by good internet and streaming. IDK how licensing deals work, but it seems to me like if you're worried about the shrinking population who needs to see CBS or HGTV in the hotel room you could try either a PPV to something like Youtube TV (or one of the basic cable streaming replacements) or even book that when someone wants to use it in the room, rather than paying for every room 24/7.
• Fitness Center - Again, maybe it's where I stay, or the times I'm walking around, but I can't think of a time I've EVER seen anyone in one of these fitness centers. At the *very least* they always seem really over-sized if one or two people once a day go there. I guess they have metrics, but I see WAY more guests using breakfast buffets than Fitness Centers.
• Business Center - I'm probably the only person I've seen go use these in the last few years. It's convenient for remote work. However, again, like no one uses them or knows where they are usually. There's almost nothing to print anymore - apps do 95% or more of that for travelers on the go. Usually I could work just as well in a chair in the lobby or in the room as long as there's a outlet for power.
• Room Service - this was always quite hit or miss anyway, but also is replaced, often cheaper, by food delivery apps.
• Daily Cleanings - I think this is the one that's likely to be most controversial - but since COVID I've been fine with maid service every few days, Timeshares have also extended that. But having it does make a hotel feel more premium. I'm 50/50 if it would cause enough people to not book to be worth the cost...

My final thing depends on the location and what guests the hotel is serving.

• For all the business or off the interstate or airport hotels - I think pools could be dropped. I can't think of the last time I've heard of overnight business guests or families on a road trip using the hotel pool. Of the few who do, I'm not sure the pool is going to even be in their booking list when making plans.
• The vacation destination hotels probably are the opposite though - if you're not staying at a resort, I can still really see many many vacationers using the pool (and have).

 

[1Kflyerguy]

Does anyone else get the feeling that Marriott may be coasting on older brand recognition? My view is perhaps Skewed by this forum, but most of the Marriott changes have been generally seen as negative here, and I tend to agree. Hilton hotels have generally been positive - Aspire card actually is some nice upgrades added this year, pulling SLH and contracting for free nights to work there and points values that aren't "insane" even if high end, improvements in status offers (not just water, now chocolate, coke, and some other options at check-in) and prices aren't up over inflation noticeably, and points values seem largely the same.

I agree most of the changes have been negative. Marriott seems to be focused on growth, and thus trying to make the property owners happy and allow them to cuts benefits/costs at the expense of the guests.

Personally I like having a traditional clock in the room. I don't like have to pickup my cell phone in the middle of the night..

The only time I use the desk phone is to make on property calls, like valet or call for laundry pickup etc. But many properties now allow for texting and that works good as well.

I watch a lot of local TV while traveling, but agree that's a shrinking population .

Completely agree about pools at roadside and airport locations, almost never use them and would not miss them.

 

[dioxide45]

• Fitness Center - Again, maybe it's where I stay, or the times I'm walking around, but I can't think of a time I've EVER seen anyone in one of these fitness centers. At the *very least* they always seem really over-sized if one or two people once a day go there. I guess they have metrics, but I see WAY more guests using breakfast buffets than Fitness Centers.
• Business Center - I'm probably the only person I've seen go use these in the last few years. It's convenient for remote work. However, again, like no one uses them or knows where they are usually. There's almost nothing to print anymore - apps do 95% or more of that for travelers on the go. Usually I could work just as well in a chair in the lobby or in the room as long as there's a outlet for power.
• Room Service - this was always quite hit or miss anyway, but also is replaced, often cheaper, by food delivery apps.
• Daily Cleanings - I think this is the one that's likely to be most controversial - but since COVID I've been fine with maid service every few days, Timeshares have also extended that. But having it does make a hotel feel more premium. I'm 50/50 if it would cause enough people to not book to be worth the cost...

• You clearly don't go to the fitness center in the early mornings. They are always quite busy.
• The business center is good if you need to print something out. This is less and less of a thing, but I have used the business center in the recent past and seen people in them too. They only need one or two computers and a printer. Though the ability to email something to the front desk and have them print it would work too. Though, that doesn't work for more confidential stuff.
• Room service is a profit center for the hotels from those who travel for business and expense it through their company. This won't go away unless companies force business travelers to use different food services.
• I would be okay with lack of daily cleanings if it actually resulted in lower rates. But we don't see prices go down when daily cleanings go away.

 

[jp10558]

• You clearly don't go to the fitness center in the early mornings. They are always quite busy.

True, I don't get up super early on trips unless forced to. I'm mostly spit-balling on future cost to maintain (or cost to build in a new hotel I guess) vs use percentage AND how likely it is to affect choosing to book that location or somewhere else. Like with cable TV service - if the percentage using it is shrinking, and I'd guess actually more importantly, the percentage skipping booking because of not having it is shrinking - I guess they have some data from card checkins to the fitness center.

• The business center is good if you need to print something out. This is less and less of a thing, but I have used the business center in the recent past and seen people in them too. They only need one or two computers and a printer. Though the ability to email something to the front desk and have them print it would work too. Though, that doesn't work for more confidential stuff.

I doubt most family stays are printing confidential paperwork, and TBH any business confidential data with a competent IT security policy would be told not to print via an untrusted printer in a hotel open space. Many work laptops are secured such that you cannot even get a document off of the laptop to non work devices. I think the "breakfast space" with outlets should work for people bringing their laptop to work, and for the "print my boarding pass" cause I don't get apps crowd can e-mail to the front desk. IMHO anyway.

• Room service is a profit center for the hotels from those who travel for business and expense it through their company. This won't go away unless companies force business travelers to use different food services.

Ahhh. I wondered how that's going, business travel in general. I feel like it went down when we figured out Zoom, but now with companies wanting to pay for return to office, maybe they want to pay for plane fares and hotels again too. I can start to see companies having deals with doordash or whatever in their portal and caps on the per deim, but I guess for fancy sales travelers that may not apply.

 

[clifffaith]

As kids in the 60s doing summer road trips with my parents, the evening’s lodging was always a pool with a motel next to it. Can’t imagine roadside hotels giving up their pools.

 

[Daytripz]

The fitness center is one of the first things I look for on vacation. (This holds true for MVC stays)

My husband travels extensively for work and has horrible hours, often getting to a hotel after midnight. Most restaurants are closed by then. If he can’t get room service, he can’t get a meal.

I think the big difference in how you view Marriott is if you are a business traveler vs a vacationer.

 

[jp10558]

The fitness center is one of the first things I look for on vacation. (This holds true for MVC stays)

Do you check before booking and book elsewhere? If one Marriott hotel didn't have a fitness center would you switch hotel brands, or look for the next nearest with a fitness center?

My husband travels extensively for work and has horrible hours, often getting to a hotel after midnight. Most restaurants are closed by then. If he can’t get room service, he can’t get a meal.

I think the big difference in how you view Marriott is if you are a business traveler vs a vacationer.

This has to be true. For business IDK why Marriott doesn't just raise the rates if they want more profit. Most work travel I've heard of is "pick from the hotels we have a contract with" but I've seen them not blink at $800 a night if it's on the list and where you're "supposed to be". Similarly though, the business traveler sales is probably way more dependent on getting in / keeping on the list of contracted chains or whatever hotel portal companies use. Somehow I doubt (though I could be wrong) that the portals or contract people at a company are looking at if there's a pool or fitness center as chain standard for differentiation. Even though you wouldn't expect it - from my limited experience on things like general purchasing businesses are far less price sensitive than consumers - you often need to be talking about 40% differences to overcome inertia of existing contracts, sales relationships, etc. And that's on orders over $10,000 so most hotel nights or even couple day stays are not going to trigger the ~$3,000 minimum "tripwire", hence approving the $800 a night locations if you need to be there. Numbers vary on the company, but I've seen it at a couple different places.

Consumers are another matter though, which is why I kind of think the cost cutting is targeting consumers more than businesses - cause otherwise just raise rates. Or do we think Marriott thinks they're at risk of pricing themselves out of both markets, changing what they think is the main target market or just being crazy greedy and again this'll hurt their competitiveness with other chains?

 

[dannybaker]

Just my opinion ive been a Marriott member for nearly 40 years and spend 75-120 nights a year in Marriott’s across the world. Marriott has become a very out dated property with horrible breakfast and rooms that barely get cleaned. As everyone knows they continue to devalue their members platinum status and increase points to stay. We do use the gym and it’s important to us for most stays. Instead of cutting things they should be looking at ways to make Marriott a good value to customers. My platinum status has been pretty much worthless for a long time. Why stay loyal to a company that has nothing to give in return.

 

[noreenkate]

For all the business or off the interstate or airport hotels - I think pools could be dropped. I can't think of the last time I've heard of overnight business guests or families on a road trip using the hotel pool. Of the few who do, I'm not sure the pool is going to even be in their booking list when making plans.

We road-trip a few times per year and plan intentionally for hotels with indoor pools...the problem we keep encountering since COVID-19 is the pools are too gross to use. To be honest, at this point, we no longer have brand loyalty. There are way too many cuts in all brands and now we just pick and choose where we are staying based on reviews.

 

[BJRSanDiego]

I am (semi) brand loyal with Marriott because I have a Bonvoy card and collect a ton of points. I use those points to book Marriott hotels in places where I can't do an exchange or when I'm only staying a few nights.

I'm still a little irritated when I think of Marriott switching to those tiny soap bars with holes in them and the pump containers in the shower. I preferred the individual small bottles of shampoo and I don't care for body wash. So, now I'm recycling my old little bottles of shampoo and are refilling them from the shower-mounted pump.

 

[1Kflyerguy]

I'm still a little irritated when I think of Marriott switching to those tiny soap bars with holes in them and the pump containers in the shower. I preferred the individual small bottles of shampoo and I don't care for body wash. So, now I'm recycling my old little bottles of shampoo and are refilling them from the shower-mounted pump.

I am sure there is cost saving with the wall mounted dispensers, but I also believe there are some local and statewide mandates to eliminate the "single use" items for environmental reasons..

My biggest complaint with the wall mounted units is they often make the dispensers very hard to read for people with glasses... light green writing on dark green background, or giant brand logo with tiny writing for the actual product...

 

[jp10558]

To be honest, at this point, we no longer have brand loyalty. There are way too many cuts in all brands and now we just pick and choose where we are staying based on reviews.

When I read stuff like this I'm just wondering if
A) my standards are like 50% of your's (or lower)
OR
B) You haven't used Hilton Honors Gold or Diamond Status - especially with the Amex Surpass or Aspire card

The reason I ask is it's kept me pretty brand loyal since 2008 - even got me to buy HGVC first in timeshares. The only time I've had an issue was years ago and I got partial refund or a large points added to make up for one bad night. Brand standards have been constant across the US, Canada and Europe (where I've gone, so necessarily limited), pricing has been competitive to other mid range hotels, points values have been steady since 2012 or so, free nights have just gotten better (went from weekend to any about 5 years ago), Diamond members get a number of desired parking spaces, on check-in the gold or diamond benefit expanded this year from just bottled waters to a choice of water, coke, diet coke, lindt truffles, and something else I forget. You still get upgrades if relevant. Hilton Honors members get discounts direct booking (not as good as you can get with expedia, but saves over various retail rates and you get all the points earning and benefits this way).

Aspire lets you get up to 3 free nights with spend a year on top of the points, so it really supercharges Hilton IMO. And like I've said since 2008, a Hilton free night cert is a free night anywhere with a standard room available (which you can be upgraded from), so we've used it Times Square NYE ($2,500 rack rate), plenty of city locations that advertise $300-$800 a night, and now it's expanded to SLH too.

Given my experiences (more limited) with non branded locations like in Lake George NY, or Red Roof Inn / Super 8 / Holiday Inn Express due to using expedia cheapest or location restraints - I have yet to be at a Hilton property that wasn't a cut above those, even Hampton Inns roadside.

I know I sound like an ad - but like I said, either my standards are low enough I'm overpaying and need to try some more "cheap options" based on expedia or booking.com OR Hilton is really doing something right compared to other chains.

 

[jp10558]

I am sure there is cost saving with the wall mounted dispensers, but I also believe there are some local and statewide mandates to eliminate the "single use" items for environmental reasons..

It also is better IMHO when you have 2 or 3 people for a few nights and would inevitable run out of the small containers quickly and have to also bother housekeeping - we have yet to worry with the wall mounted dispensers. The only downside for me is bars of soap don't really need a "loofa" to effectively use like I find the gels kind of do.

 

[DAman]

It also is better IMHO when you have 2 or 3 people for a few nights and would inevitable run out of the small containers quickly and have to also bother housekeeping - we have yet to worry with the wall mounted dispensers. The only downside for me is bars of soap don't really need a "loofa" to effectively use like I find the gels kind of do.

Unfortunately I’ve found housekeeping doesn’t always check/refill the wall mounted dispensers leaving me in the shower numerous times without soap, shampoo, and/or conditioner.

 

[CalGalTraveler]

I stayed at Marriott's frequently when I was traveling on business. With points earned, we scored a few good aspirational stays (W Verbier, Westin Riverfront). But those stays now require too many points be be useful.

I don't travel much on business these days, so consequently, I have no loyalty anymore other than to use the free credit card certificate and a few points for hotel repositioning or a 1 night extensions.

With timeshares and FNCs and points we haven't paid cash for a hotel room in years. Last year we stayed 10 nights in Portugal on FNCs and points from all 3 brands (Marriott, Hilton, IHG). Because the cost of living is low in Portugal there were some decent points stays at Marriott brands. This was tacked onto a week timeshare stay in Algarve. In the past I would have had enough to stay one week with one brand. Devaluations all around.

 

[jp10558]

With timeshares and FNCs and points we haven't paid cash for a hotel room in years. Last year we stayed 10 nights in Portugal on FNCs and points from all 3 brands (Marriott, Hilton, IHG). Because the cost of living is low in Portugal there were some decent points stays at Marriott brands. This was tacked onto a week timeshare stay in Algarve. In the past I would have had enough to stay one week with one brand. Devaluations all around.

I guess IDK what "In the past" meant, or how many points you tend to work with in Hilton, but I just put in next Feb 8-15 to be a week and not "tomorrow", and searched for "Portugal". Looking at the top 10-15 listings, the points values were within what I'd consider the "normal range" since circa 2012 compared to the US. Some were very cheap, like average 25,000 - some were higher end around 70,000 (per night). Many were SLH options, others were Hilton brands. Given the 5th night is free on points stays that may have driven down the average 20%, but you're talking about a week stay so seems fair. Maybe 15 years ago Portugal was "give away points prices" at like 5,000 a night, IDK - I only traveled in the US back then.

 

[CalGalTraveler]

@jp10558 I was saying that Portugal is still reasonable. USA and other locations not good anymore.

 

[dioxide45]

I am (semi) brand loyal with Marriott because I have a Bonvoy card and collect a ton of points.

We are loyal to Marriott mainly because we don't pay cash for hotel stays. Points from credit card spend and tours gets us free hotel rooms. Those Bonvoy points won't get us free stays at a different brand, so we go with Marriott.

 

[noreenkate]

You haven't used Hilton Honors Gold or Diamond Status

Hilton honnors Gold members for quite a few years- yes they give bottles of water at check in but during our last year at the Hilton West Palm the cockroaches were climbing the side of the omlete station, Signa Orlando valet was a nightmare - and most furnishings and carpet were incredible run down.
I found that room conditions across the honors brands were not great . - if the lights blink or flicker when I walk into a room or the showers don't drain IMO that's a problem with the staff both housekeeping and maintenance- not loyalty status.
If you like them enough to be loyal and it works for you great - I can buy my own bottled water if it means the shower is clean.

 

[jp10558]

Hilton honnors Gold members for quite a few years- yes they give bottles of water at check in but during our last year at the Hilton West Palm the cockroaches were climbing the side of the omlete station, Signa Orlando valet was a nightmare - and most furnishings and carpet were incredible run down.
I found that room conditions across the honors brands were not great . - if the lights blink or flicker when I walk into a room or the showers don't drain IMO that's a problem with the staff both housekeeping and maintenance- not loyalty status.
If you like them enough to be loyal and it works for you great - I can buy my own bottled water if it means the shower is clean.

Wow, yea that has not happened to me. I would have complained to the desk or called the corporate number if that didn't work - that really is a let down to hear. I'm headed south soon, so I'll avoid those locations. My recent stays were in NY Monticello, London England and Quakerstown PA. So sounds like Florida not as good.

 

[1Kflyerguy]

I have found a few tired Hilton or Marriott hotels over the years, but have general been pleased with my experiences.

Between points, FNC and paid stays, we probably average a couple of weeks in hotels, and two or three weeks in timeshares.

 

[claraj]

In 2018 I stayed at the JW Marriott in Chicago for a work related event and I was very unimpressed. The carpets were very old and the gym and pool in the basement felt dark and dingy. In hindsight I wished I had stayed at the newer Hyatt Centric a few blocks away. It was not what I was expecting for a JW Marriott property.