# Marriott cuts hotel loyalty fees 5%, squeezing Bonvoy margins

_Aug 5 16:58_

Tags: Marriott Bonvoy, Marriott co-branded cards, Global, hotel, loyalty program, credit card

Type: Analysis

## Summary

Marriott cut loyalty fees billed to hotels by about 5% at the start of the year and raised owner pay for Bonvoy redemptions on high-demand nights, a squeeze One Mile at a Time says members will likely cover through cheaper points. Marriott still sets award prices centrally, so lower hotel fees and higher redemption payouts thin program margins. The company says the new rates are the industry's lowest.

Bonvoy membership has grown to 295 million from 200 million in early 2024. Management told investors a refreshed U.S. co-brand lineup should lift loyalty fees and margins as new cards roll out. One Mile at a Time says the refresh is built for Marriott's fees, not members. There is no published award chart, so any devaluation would show as higher dynamic pricing, especially when hotels are near capacity. Owners had recently pressed for better pay on award stays after Hilton gave franchisees similar relief.

Watch Bonvoy award prices on busy nights rather than treating today's values as durable.

## Key facts

- **Numbers**:
  - 5%: reduction in loyalty charge-out rates billed to hotels
  - 295 million members: Marriott Bonvoy membership
  - 200 million members: Marriott Bonvoy membership in early 2024
- **Takeaway**: Watch Bonvoy award pricing on busy nights and do not assume today's redemption values will last.

## Sources cited

- [One Mile at a Time](https://onemileatatime.com/news/marriott-bonvoy-economics-worse-members-pay-price) — Marriott Bonvoy Economics Get Worse, And Members Will Pay The Price

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