Marriott CEO Anthony Capuano revealed some details about the evolving economics of the Marriott Bonvoy program. While they’re probably necessary from the perspective of hotel owners, this is something that members should be worried about…
In this post:
Marriott charges hotels less for points, pays them more for redemptions
During Marriott’s Q2 2026 earnings call, the company’s CEO made some interesting comments that could impact Marriott Bonvoy members, including this one:
“At the beginning of the year, we lowered loyalty charge-out rates across our global system by roughly 5% to what we believe are the lowest in the industry across all chain scales. In addition, earlier this year, we enhanced owner reimbursement for Bonvoy redemption stays on high-demand nights. We have also introduced streamlined brand standards, which simplify operations and reduce costs, and we have rolled out flexible renovation scopes that focus on customer-facing elements of the hotels.”
Just to simplify that even more:
- When you stay at a Marriott you’re issued Bonvoy points (assuming you’re a member), and that’s funded by the loyalty charges that Marriott bills hotels, which are a percent of revenue; Marriott has just lowered those fees by 5%, to give hotel owners some relief, and claims it now has the lowest fees in the industry
- When you redeem points, the amount the hotel is reimbursed varies based on how full the hotel is, and Marriott has reportedly increased reimbursement for hotels when the properties are quite full
- Also, not directly related to Bonvoy, but Marriott is reducing brand standards, to give hotel owners more flexibility, so that’s not great in terms of consistency
All of these updates won’t be good for Bonvoy members
Let’s be clear here — Marriott centrally controls the value of Bonvoy points and sets award pricing, based on the economics of the program. With these latest changes, Marriott is taking in less money from individual hotels for awarding points, and is increasing the amount that hotels are paid when members redeem points.
Do we think Marriott is just willing to eat all of those costs, and greatly reduce its margins? That seems highly unlikely for a publicly traded company. Instead, this almost certainly points to the continued devaluation of Bonvoy points, particularly for redemptions at hotels when they’re close to being at capacity. Since Marriott doesn’t publish award charts, expect continued devaluations… which you’d expect either way.
Admittedly none of this is surprising. A couple of months ago I wrote about how Marriott hotel owners came together to demand more money for award stays. They felt like Marriott was using the Bonvoy program to centrally boost its profits, essentially at the cost of individual hotel owners. So I do think that Marriott had to make things more compelling for owners. For that matter, this matches the industry trend, as Hilton Honors is providing similar relief to hotel owners.
So, what is Marriott telling investors to make them more optimistic about this situation? They’re pointing out the continued growth of the Bonvoy program, as it now has 295 million members (up from 200 million in early 2024, so the growth rate is wild).
Jen Mason, the company’s CFO, noted how the co-brand cards will be undergoing a refresh, and that’s expected to help margins as well (again, probably not great for actual members):
“The benefit to the loyalty program and to our fees from our new U.S. co-branded card deals is expected to build over time as new and refreshed U.S. card products with new cardholder benefits are introduced, supporting anticipated growth in new accounts and cardholder spend.”
Bottom line
Marriott’s CEO made some interesting comments about the Bonvoy program during the company’s Q2 2026 earnings call. Specifically, he indicated that the company has dropped loyalty fees for hotel owners by around 5%, and on top of that, has increased reimbursement fees for hotel owners for award stays at nearly full properties.
Obviously this materially cuts into the margins of the program, but I’m sure it won’t be Marriott taking the loss on this, but instead, members.
What do you make of these comments from Marriott’s CEO?
Marriott is basically a microcosm of the US economy as a whole: way more expensive, same earning opportunities, and worse quality.
Signed a LT Plat that only stays at Marriotts when it’s the hotel I actually want (rare). Also RIP SPG
Oh, so, is Marriott also run by a raging malignant narcissistic neo-fascist?
(Before ye Members ‘report’ me, just know, I’m trying, real hard, to treat my ‘TDS,’ so, please have just mercy. I just can’t resist the lay-up that Andrew has provided here.)
I miss SPG so much!!! I was Platinum and always treated so well. Marriott has deteriorated in quality so dramatically and they don't care. I'm retired and cutting back on travel as the airlines and hotels are getting away from.customer satisfaction and focused on stock holders.....
One major thing they need to update is the benefits for cardholders that become more in line with what is currently being offered. For example, I think they should raise the coupon rewards because it is difficult to get the same value as before. I agree with other comments about the little input that corporate has when issues come up and they do not enforce rules to the hotels.
I find it mildly entertaining how some go on about picking Four Seasons, Rosewood, etc. instead of Marriott.
Let's be honest, how many properties does Marriott actually have on their slate that is supposed to compete with the likes of Rosewood? A select few Ritz-Carltons, Bulgari (which are not Bonvoy properties anyway), a few select Luxury Collection properties, and a few Editions probably. The rest of the 10,000 or so properties are just in...
I find it mildly entertaining how some go on about picking Four Seasons, Rosewood, etc. instead of Marriott.
Let's be honest, how many properties does Marriott actually have on their slate that is supposed to compete with the likes of Rosewood? A select few Ritz-Carltons, Bulgari (which are not Bonvoy properties anyway), a few select Luxury Collection properties, and a few Editions probably. The rest of the 10,000 or so properties are just in different leagues. Who ever weighed the pro and cons of picking a Courtyard or The Rosewood in Hong Kong? Though I could probably have a considered thought between picking Ritz-Carlton Hong Kong and The Rosewood Hong Kong.
The question is if you ditch Marriott, who are you by and large going to pick instead? Great likelihood is that you are going to end in another chain somewhere, Hilton, IHG, Accor, Wyndham, Radisson, Choice, and eventually moving in to a long line of regional and local chains. Are their points and benefits going to be better?
We have enjoyed the points party so far, but Sunday morning hangovers have started, and it is time to pay the price for the party.... :)
In the end being a free agent means picking what is best for the sum of conditions for a stay. Which means sometimes you collect points, and sometimes you do not. Sometimes Marriott does have great things to offer, sometimes they don't. But rejecting a chain as a matter of principle does not make a free agent, it just makes you captive of a different road.
I think your perspective is very valid. I think a new ‘frequent traveler’ math needs to be created. Service is being commoditized and reduced, “innovation” at hotels is usually just a labor cost savings, resorption rates are rising, dynamic pricing is ruining everyday value options and much more. The game just isn’t the same as 15-20 years ago. The value proposition is different now and I think one has to look at it as ‘what...
I think your perspective is very valid. I think a new ‘frequent traveler’ math needs to be created. Service is being commoditized and reduced, “innovation” at hotels is usually just a labor cost savings, resorption rates are rising, dynamic pricing is ruining everyday value options and much more. The game just isn’t the same as 15-20 years ago. The value proposition is different now and I think one has to look at it as ‘what is the best for me on this trip’ instead of the old math.
At this point, I’ve pretty much given up on loyalty programs. Where I live, there aren’t any credit cards that offer instant elite status (except for AMEX), so I have to earn them the hard way. I might as well just book through Virtuoso or Hotelux instead, which offer comparable rates but with instant tangible benefits.
It’s kind of interesting that both airlines and hotels companies are more dependent than ever on credit card revenue - - - and doubling down seemingly every year. Meanwhile, the programs shrink in value, which - eventually - seems likely to cause consumer behavior to change, reducing the credit card revenue on which they are so dependent. How it ends will be interesting. As for my household, we are increasingly free agents, in spite of...
It’s kind of interesting that both airlines and hotels companies are more dependent than ever on credit card revenue - - - and doubling down seemingly every year. Meanwhile, the programs shrink in value, which - eventually - seems likely to cause consumer behavior to change, reducing the credit card revenue on which they are so dependent. How it ends will be interesting. As for my household, we are increasingly free agents, in spite of lifetime status, and discovering some great places to stay in the process. That’s been motivated by none other than Marriott, Hyatt, and Hilton. They have essentially dared me to look elsewhere. We have. They might eventually notice.
When you travel, especially if you travel outside cities, you are stuck with either IHG-branded hotels, Marriott-branded hotels or Hilton-branded hotels. Those three have bought-up most of the hotel brands. So we're stuck. Complain all you want, but we're stuck.
(I guess there are Choice-branded hotels and Wyndham-branded hotels too but most business travelers would not stay in those if they can help it.)
In Europe we have a fourth option which is far more common than any of those three: Accor.
To illustrate this, in Poland alone there are 82 Accor hotels to choose from, which I believe is more than all the others combined.
Hyatt OTOH is essentially non-existent outside North America and China.
From a loyalty programme perspective, Marriott still have quite a few devaluations to go to even down close to the level of Accor.
I agree with both Cirrus and CPH-Flyer. Yes, in Europe (and Asia, South America, Africa) we additionally have Accor. But yes, little value in their program compared to Marriott etc.
The economics of loyalty programs are different in Europe, since credit cards play almost no role. Even branded credit cards usually only give a few points, but no status benefits. This is because the banks protect their margin on credit cards giving hardly any benefits...
I agree with both Cirrus and CPH-Flyer. Yes, in Europe (and Asia, South America, Africa) we additionally have Accor. But yes, little value in their program compared to Marriott etc.
The economics of loyalty programs are different in Europe, since credit cards play almost no role. Even branded credit cards usually only give a few points, but no status benefits. This is because the banks protect their margin on credit cards giving hardly any benefits other than processing payments (at high fees, if international).
I can't read your blog any longer with constant ads popping up. Thanks for the past enjoyment.
You many bloggers pushing credit offers to their readers. Now everyone is ELITE and it means absolutely nothing for 95% of us. What a joke. Somebody gotta pay for it.
Thinking about what they would do with the Ritz Carlton credit card. Since January 2026, the PP lounge guesting went from unlimited to just two to be more in line with Chase’s other similar cards. Wondering if Marriott and Chase would work together to make it even worse and call it due to customer feedback or as a result of guest enhancement nonsense. Hope they won’t increase the annual fee so much to be more in line with CSR.
Everyone so far is missing the point. I am a lifetime Titanium member earned thru Starwood. I have pretty much stopped staying at Marriott properties in the US and Europe. THE BIGGEST REASON IS THEINCONSISTENT AND DOWNRIGHT HORRIBLE EXPERIENCES FOR THE HOTEL CATEGORY I HAVE STAUED. Most of the Sheratons are trash, even a lot of outdated Marriott independent someJW Marriotts. So elite status, recognition... are moot. Overall IHG is the best overall although fewer...
Everyone so far is missing the point. I am a lifetime Titanium member earned thru Starwood. I have pretty much stopped staying at Marriott properties in the US and Europe. THE BIGGEST REASON IS THEINCONSISTENT AND DOWNRIGHT HORRIBLE EXPERIENCES FOR THE HOTEL CATEGORY I HAVE STAUED. Most of the Sheratons are trash, even a lot of outdated Marriott independent someJW Marriotts. So elite status, recognition... are moot. Overall IHG is the best overall although fewer 4 star and 5 star categories. I love Hyatt, but very limited properties at my price range. Hilton has gone by the wayside with extreme points devaluation...
I’m with you on IHG, more and more, these days. If only there were more Six Senses in North America… most of the Kimpton properties have treated me well, at least.
Ben - Your analysis may be spot on and I share most folks lack of enthusiasm for the Bonvoy program and many of the hotels. But the optimist in me read this news differently. Marriott is giving the owners what they requested (better margins on member stays) and making up for it’s own narrower margins via growth (more hotels and members) and credit card fees (perhaps it will be a more compelling card to justify...
Ben - Your analysis may be spot on and I share most folks lack of enthusiasm for the Bonvoy program and many of the hotels. But the optimist in me read this news differently. Marriott is giving the owners what they requested (better margins on member stays) and making up for it’s own narrower margins via growth (more hotels and members) and credit card fees (perhaps it will be a more compelling card to justify any fee increases)…and if it results if happier owners improve services and treatment of members, and more newer aspirational properties join the program, and the credit card it better…that’s a win for members. No?
Over the past ~4 years, I've dropped my Bonvoy credit card reduced my Marriott bookings by probably 80-90%. Honestly, I'd probably never stay if I weren't a lifetime platinum.
Bonvoy as a "loyalty" program is pretty uninspiring.
At the end of the day, I'm just treating them how they've been treating me and it's all good.
P.S. It's pretty annoying that the "Post" button for comments is disabled unless I subscribe to your newsletter.
You'll get an email confirming the newsletter which you don't have to accept.
Wouldn’t it just be nice if a major corporation comes and says, “ we are screwing you? “. Consumers won’t change behavior, but stop lying to our faces and lipstick on pig. Id gain more loyalty to something that admits it, bs spin and lying.
As many others have mentioned in previous posts lamenting Bonvoy, Marriott really shouldn’t be thought of as a hotel chain. In reality, it’s simply a booking platform for a disparate set of brands. Marriott’s reliance on an asset-light business model and their further watering down of brand standards reinforces this point, while further blurring the line that separates Marriott from, say, Expedia (aside: how do you water down something that was non-existent to begin with?!).
...As many others have mentioned in previous posts lamenting Bonvoy, Marriott really shouldn’t be thought of as a hotel chain. In reality, it’s simply a booking platform for a disparate set of brands. Marriott’s reliance on an asset-light business model and their further watering down of brand standards reinforces this point, while further blurring the line that separates Marriott from, say, Expedia (aside: how do you water down something that was non-existent to begin with?!).
Ben - an idea for a future post/case study: comparison of real world benefits delivery for Bonvoy elites and Expedia elites. I have a hunch that the results may surprise us.
We miss Starwood!
Someone took the advice and went to Bab Samhan
I mean, is this really surprising? Marriott has shown time and time again that they simply don't give an F about guests or loyalty. Their stance goes back years and predates the Starwood merger. Aside from convenience, why do so many people continue to give their money to them? Brand standards are lower, elite ranks are swelled, loyalty benefits aren't honored, points are worth less, so what's the draw?
The biggest issue with Bonvoy isn't point devaluation (because all loyalty programs do that), but rather the lack of T&C enforcement for which properties much comply.
It won't get better. There are good Bonvoy properties that are stellar in their offerings and execution. There are poor ones to avoid. The guest playbook is to navigate the Bonvoy program by only staying at their cream of the crop (not necessarily their most expensive) properties which...
The biggest issue with Bonvoy isn't point devaluation (because all loyalty programs do that), but rather the lack of T&C enforcement for which properties much comply.
It won't get better. There are good Bonvoy properties that are stellar in their offerings and execution. There are poor ones to avoid. The guest playbook is to navigate the Bonvoy program by only staying at their cream of the crop (not necessarily their most expensive) properties which are good to guests.
I am intrigued to what changes the credit card refreshes will bring, particularly to the US AMEX Brilliant card.
The entire points game is going down the toilet. I can generate millions of miles every year, but unless you are travelling by yourself off-season and super flexible, it's basically impossible to book anything worthwhile with a better/equal value than 2% cash back.
Bonvoy CC cards, as stated above, have been useless for years. The ratio is much worse than 2% cash back.
I agree. The end is near.
So, you fellas declaring ‘pan-pan’ 3x or more of a ‘mayday’ 3x?
Honestly, I welcome this sort of change, because Marriott is making it increasingly easy to be brand agnostic and to stop chasing loyalty benefits under their umbrella. They have inflated redemption costs to such a degree that it is nearly impossible at this point to take advantage of the 5th night free benefit at anything resembling an aspirational hotel. They’ve also become absurdly lax in enforcing brand standards, to the point that some of my...
Honestly, I welcome this sort of change, because Marriott is making it increasingly easy to be brand agnostic and to stop chasing loyalty benefits under their umbrella. They have inflated redemption costs to such a degree that it is nearly impossible at this point to take advantage of the 5th night free benefit at anything resembling an aspirational hotel. They’ve also become absurdly lax in enforcing brand standards, to the point that some of my recent Ritz-Carlton stays have felt closer to a Westin than to a Rosewood or Four Seasons.
I’ve had the Bonvoy Brilliant card for several years now, but I am already looking forward to my card anniversary later this year as I plan to giddily call Amex and cancel the card.
Thankful I have lifetime status for whatever small benefit that provides and can stay only when the Marriott option is the best for my needs on that trip. It's unfortunate because had they left a path to lifetime titanium I might still be engaged but they didn't so just a passive member now.
Yes, there should be an LTT option at say 10 years and 1000 nights.
As someone who is*perhaps* considering purchasing Marriott points (after reading the post about it yesterday) with the current 50% bonus this is another good piece of information to take in to account.
https://onemileatatime.com/deals/buy-marriott-bonvoy-points/
think its crazy to have loyalty to marriott these days for paid stays (unless company is paying for it), but luckily their CC options continue to be good for churning. 2 amex personal cards and 1 amex biz card to churn once per lifetime, plus a chase boundless every 2 years. in a 2 player household has been pretty easy to rack up a nice balance this way without almost any paid stays
From a strict points and miles perspective, Marriott's credit cards have been useless for a few years now, how much worse can they get?
Agree except for the Ritz. With all the increases in awards cost, the 35k certs should really be bumped up to 50k, and 50k certs 75k, and 85k to 100-120k.
How did this become a race to the bottom to ratf*** the consumer? Is it consolidation? Maybe that Marriott Starwood merger was more anti competitive than I would have thought.
Profits over people? Oh, that's nothing new. We just used to 'shame' and 'regulate' it better.
While it is kind of victim blaming. However. The US credit card market, and people naively believing that all of the ever higher sign up bonuses and ever more amazing benefits came without a cost are big reason of this becoming a race to screw over the people who have been enjoying it so far. Did people really think that the ever increasing speed of minting points and miles from activities not related to staying...
While it is kind of victim blaming. However. The US credit card market, and people naively believing that all of the ever higher sign up bonuses and ever more amazing benefits came without a cost are big reason of this becoming a race to screw over the people who have been enjoying it so far. Did people really think that the ever increasing speed of minting points and miles from activities not related to staying or flying would not eventually come with a decrease of value and a collapse of benefits?
The points and status party is coming to a slow and painful end. Hope people enjoyed it while it lasted.
While it is kind of victim blaming. However. The US credit card market, and people naively believing that all of the ever higher sign up bonuses and ever more amazing benefits came without a cost are big reason of this becoming a race to screw over the people who have been enjoying it so far. Did people really think that the ever increasing speed of minting points and miles from activities not related to staying...
While it is kind of victim blaming. However. The US credit card market, and people naively believing that all of the ever higher sign up bonuses and ever more amazing benefits came without a cost are big reason of this becoming a race to screw over the people who have been enjoying it so far. Did people really think that the ever increasing speed of minting points and miles from activities not related to staying or flying would not eventually come with a decrease of value and a collapse of benefits?
The points and status party is coming to a slow and painful end. Hope people enjoyed it while it lasted.
Frankly I've given up on Marriott at least from a loyalty perspective. I have lifetime Platinum but I don't really expect much from status anymore when I do stay at Marriott's and if I want a specific room I'll just book that.
If a property I want to stay at happens to be a Marriott, I'll stay there, but otherwise I'm not booking them as a preference and I wouldn't consider transferring points into Marriott...
Frankly I've given up on Marriott at least from a loyalty perspective. I have lifetime Platinum but I don't really expect much from status anymore when I do stay at Marriott's and if I want a specific room I'll just book that.
If a property I want to stay at happens to be a Marriott, I'll stay there, but otherwise I'm not booking them as a preference and I wouldn't consider transferring points into Marriott given the poor redemption rates.
Honestly, I'm finding far more value out of just staying at Four Seasons, Rosewood, One&Only, etc. Without any loyalty programs, I feel like I get better treatment and recognition than I do at any Marriott with status. Obviously, it's a privilege to afford those options, but I even think they can present a better value sometimes in terms of credit card point redemptions.
Well said.
I 100% agree with you. When the three big points-and-status chains devalue their "awards" to nothing, then I'll stay at much better properties that don't have points schemes at all, but where I can get decent benefits anyway via their luxury programs (Virtuoso, Four Seasons PP, Mandarin Oriental FC, etc., etc., etc. - and if I want a Park Hyatt without using points, there's always Privé).
Agree on all counts. A Marriott never happens to be the property I want to stay at - I’ve only ever stayed at a Marriott for the loyalty program. But I’ve stopped doing that 2 years ago so no more Marriott for me.
Ben, "I love a good roast! Do (Marriott)!" --Liar Liar, 1997
The reality of modern hospitality is that you (the guest) are not Marriott’s primary customer; the property owners and credit card issuers are. Same goes for airlines with passengers, sadly.
We're all gonna get Bonvoy'd, again and again.
JUST SAY NO
(Thanks, Nancy!)