4 Replies Latest reply: Dec 16, 2014 7:39 AM by erc RSS

Category Changes BEFORE Formal Announcement

pingreeman Platinum 1 Reviews
Currently Being Moderated

Each year, I perform an analysis on the new listing of hotel category changes once Marriott announces those changes. This year, I thought I would anticipate those changes and do an analysis. Unfortunately, my analysis suggests some "maneuvering" that perhaps most of those on MRI were unaware which can be summarized as:

 

Category changes are happening throughout the year with the annual announcement taken from a year-end "snapshot."

Let’s take a look at the United States:

During the last year, there were a net 96 more hotels yet here is what REALLY happened:

  • Between Cat-01 and Cat-05, there are now 110 fewer venues.
  • Between Cat-06 and Cat-09, there are now 205 more venues
  • Between Tier-01 and Tier-03, there are now 5 fewer venues
  • Between Tier-04 and Tier-05, there are now 6 more venues
DataCat 1Cat 2Cat 3Cat 4Cat 5Cat 6Cat 7Cat 8Cat 9Tier 1Tier 2Tier 3Tier 4Tier 5Grand Total
United States03/23/20141896168917164592537638521611813281
12/15/2014157649863698394293189771811491323377
Cat Change(32)33(28)(18)(65)401133913(1)(2)(2)5196

 

Let’s take a look at Europe

During the last year, there were a net 4 more hotels yet here is what REALLY happened:

  • Between Cat-03 and Cat-06, there are now 45 fewer venues.
  • Between Cat-07 and Cat-09, there are now 37 more venues.

 


 

DataCat 1Cat 2Cat 3Cat 4Cat 5Cat 6Cat 7Cat 8Cat 9Tier 1Tier 2Tier 3Tier 4Tier 5Grand Total
Europe03/23/2014037533262581710913410287
12/15/20146434230454342201113410291
Cat Change66(11)(2)(17)(15)25102000004


 

I changed the 12/31/2013 dates (to 03/23/2014) to reflect the post 2014 announcement date made in late-March.

(For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Category Changes BEFORE Formal Announcement
    californian Platinum 37 Reviews
    Currently Being Moderated

    Interesting!

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Category Changes BEFORE Formal Announcement
    brightlybob Platinum 10 Reviews
    Currently Being Moderated

    Now these are interesting numbers, pingreeman.

     

    The US numbers with over 3000 hotels are too many to easily comprehend, however Europe less than 300 is much more manageable, and may indicate at least some of the answer.

     

    Although Marriott has 4 more hotels in Europe now than on 31/12, that is clearly a "net growth" number. Over the year several will have left, say 10, and several joined, in this case I'm saying 14. These "noobs" would have to be given a category, in this case, on average higher than the leavers. Do you have any data on these?

     

    There are also 3 very statistically significant changes, there were no Cat1s in Europe at all on 31/12/13, now there are 6. Alas the other 2 significant changes are more unpleasant. The number of Cat8s has doubled and the number of Cat7s near tripled, all without notice? Did you factor in the April 2014 changes, these obviously occurred between 31/12/13 and 15/12/14, but were of course announced.

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Category Changes BEFORE Formal Announcement
    erc Platinum
    Currently Being Moderated

    Thanks pingreeman  (and for your points spread sheet earlier)

     

    This is useful, relevant information. For a measure of the momentum of these changes, we should keep in mind, that unlike when politicians state the cost of a budget has declined,  they are almost always discussing the rate of increase, not the actual absolute cost. Here the Lower Cats continue to be reduced, while the Higher Cats continue to increase EVEN after two years of significant increases, which highlights the powerful impact the past years have had on point value (earn 'em and burn 'em folks).

     

    And let's not even hold the annual discussion of how Category rate changes ("based on redemption"), that's a Gordian knot that leads to an eventual unsatisfying non sequitur (IMO).

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

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