Marriott Bonvoy adds another 7 million members

Marriott International’s Marriott Bonvoy loyalty program added another seven million members during Q1, bringing the total to 203 million.

Context

• Big hotel chains are seeking to lock in high-spending travelers through their loyalty programs and Marriott is currently leading the field, although Skift has estimated that it may be overtaken by Hilton by the end of this year.
• Marriott’s loyalty program is one of three “major systems” undergoing digital and technology transformation at the business – the other two being reservations and property management. 

Why Bonvoy is important 

• The sheer size of the loyalty program is clearly one factor, but CEO Tony Capuano believes that “engagement is a much more important facet of the program”. 
• He highlighted in particular the growing credit card portfolio and the breadth of experiences on offer to members: “those are the powerful drivers of engagement”, he said during an earnings call. 
• The business is also developing midscale brands at least partly in response to members looking for lower price points for certain types of trip. 

Takeaways 

• Member penetration of global room nights reached new highs in Q1, at 70% in the US and Canada, and 64% globally. 
• Marriott Bonvoy has evolved to become a travel and loyalty platform, encompassing a portfolio of more than 30 brands across nearly 8,900 properties and other travel offerings. 
• Marriott Bonvoy also spans numerous additional collaborations and member benefits, including co-brand credit cards in 11 markets.

Sourced from Seeking Alpha, Skift

[Image: Marriott Bonvoy]