What happened
Marriott has signed new long-term U.S. co-branded credit card agreements with JPMorgan Chase and American Express and expects refreshed products over several quarters. The CEO also addressed hotel-owner complaints about Bonvoy reimbursements.
At the start of the year Marriott cut loyalty charge-out rates by 5% across its global system and called the result the lowest in the industry. Owner reimbursement for Bonvoy redemptions on high-demand nights was increased earlier this year. Some owners argue the corporation captures most Bonvoy value and that the program fund is being heavily drawn down. The CEO declined a formal reply to an owners' letter but said talks continue and are making progress.
The refreshed U.S. cards are expected to add cardholder perks, but they are not available yet and owner-reimbursement pressure could keep affecting award value. Watch for the Chase and Amex Bonvoy products over the coming quarters.
- Numbers
- 5%: reduction in loyalty charge-out rates
- Takeaway
- There is nothing to apply for yet; watch for refreshed U.S. Marriott Bonvoy cards from Chase and Amex over the coming quarters.