The latest Update features a variety of news, including stories regarding Expedia’s planned roll up of its loyalty programs and Marriott’s recently announced loyalty program partnership with Japanese e-commerce platform, Rakuten. Whether COVID or data privacy induced, the travel industry’s renewed interest in loyalty programs – whether through traditional loyalty programs or now, subscription programs – is definitely something to watch. Enjoy.
Marriott and Rakuten Announce Partnership
(“In Marriage of Two Giants, Marriott and Rakuten Take Vow on Loyalty,” July 10, 2021 via WIT)
Marriott International and Japanese e-commerce platform (e-commerce, fintech, digital content and communications all linked through a rewards program) Rakuten Group announced a partnership recently that will provide members of the parties’ loyalty program with benefits under each program. Under the partnership, Marriott gains direct local access to Rakuten’s approximately 100 million members for promoting Marriott’s hotel brands and offering travel experience customized for Japanese travelers. In exchange, Rakuten members – once enrolled in Marriott Bonvoy – will enjoy discounted member rates, opportunities to earn and redeem program points, and other member-only opportunities. Enrollment in Marriott Bonvoy will be via a simplified one-click process on the Rakuten platform. According to John Toomey, Marriott’s Vice President of Sales and Marketing in the Asia-Pacific region, the partnership is part of Marriott’s ongoing efforts to focus on local markets via partnerships and other collaborations with in-country partners. The announced partnership is scheduled to launch in phases, with the first phase starting late next month.
Fall has definitely arrived in the Pacific Northwest. It was a relatively quiet week in the online travel world. This week’s Update features a story on one of the most widely used Global Distribution Systems – Amadeus – as the company announces its second (unnamed) major customer for its new reservation platform. Enjoy.
Airbnb Takes Steps to Accommodate Hotel Listings
(“Airbnb revives hotel strategy, moves closer to rival OTA model,” September 29, 2021 via Phocus Wire)
While the pandemic may have led Airbnb to pause its hotel distribution aspirations, it appears that the pause may have only been temporary. Airbnb is reportedly testing a new API that allows suppliers to provide and display multiple rate plans (similar to many of Airbnb’s OTA competitors). According to two of Airbnb’s beta partners – RoomCloud (an Italian channel manager and booking engine) and Cloudbeds (an US cloud-based PMS provider), the changes are designed to appeal to hoteliers. Airbnb is also apparently re-starting efforts with its mobile booking platform, HotelTonight, as it seeks to fill multiple open positions within the company, including market managers. Airbnb has refused to provide comment on either effort.
Skift’s annual Skift Global Forum, which was held this past week, produced a number of newsworthy items for this week’s Update. Enjoy.
The Much Aligned Tripadvisor Plus Program Forced to Make Significant Changes
(“Sounding Off: Tripavisor Plus Changes Show the Complexity of Travel Plans,” September 24, 2021 via Phocus Wire)
While the Skift Global Forum received much of the attention this past week, the other major industry newsmaker was Tripadvisor and its decision to make significant changes to its subscription model, Tripadvisor Plus. For weeks now, we’ve detailed the challenges with the program, particularly those around Tripadvisor’s public display of its discounted member rates. For this reason, major brands were unwilling to commit to the program. This past week, Tripadvisor announced an abrupt change and will now feature retail commissionable rates (gone are the member discounted rates), but provide members a cash-back credit “roughly equal” to the former member discount (or new commission percentage). When or how travelers receive the credit is unclear. While the change may make it easier for the major brands to participate (but will they, given that the program now becomes yet another commissionable leisure distribution channel), it isn’t clear whether the change will increase travelers interest in the program (and increase badly needed subscription fees). What is clear is that Wall Street didn’t view the announced changes favorably, cutting the company’s share price by 8 percent (a loss of $374 million in market value) on the day after the news broke.
Greg Duff founded and chairs Foster Garvey’s national Hospitality, Travel & Tourism group. His practice largely focuses on operations-oriented matters faced by hospitality industry members, including sales and marketing, distribution and e-commerce, procurement and technology. Greg also serves as counsel and legal advisor to many of the hospitality industry’s associations and trade groups, including AH&LA, HFTP and HSMAI.