WASHINGTON -- Officials from ASTA and Marriott International met
this month to discuss their positions on Marriott's Preferred
Travel Agency program, which was introduced in November.
The meeting, according to ASTA's Paul Ruden, staff senior vice
president of industry affairs and travel technology, was "cordial"
but not productive. ASTA president and chief executive officer Joe
Galloway was also in attendance.
"Our story is that we had a discussion and that's all we had,
and that's all there is to say," said Ruden.
Bruce Wolff, senior vice president of distribution sales and
marketing, said Marriott used the meeting to talk about some of the
"agent-friendly" things the company does, such as paying
commissions promptly and using single-image inventories.
"We both have a better understanding of our positions, but there
will be no specific actions," said Wolff. "We'll both think about
ways to work more effectively together."
The Preferred Travel Agency program is tied to Marriott's travel
agent education program, Hotel Excellence. Agency locations with a
graduate of the course will maintain 10% commissions, whereas
locations without a graduate will be paid commissions of 8%.
When the program was announced in October, Wolff emphasized
Marriott's view that the move was not a commission cut, but rather
a "voluntary commission redistribution." Marriott said that money
saved on the 2% commission differential will be reinvested in Hotel
Excellence.
Marriott has caught some heat from other hotel companies because
of the program, but Wolff said that was expected. He said that
Marriott's competitors are keeping a close eye on how ASTA reacts
to the program.
"We do think that the response that ASTA gives over the next
couple of months will be key to any competitors' thinking," said
Wolff. "ASTA should realize this is not a commission cut and should
not be handled as one," he said.
For its part, ASTA had labeled Marriott's move a commission cut
from the start and ASTA officials boycotted a Marriott-sponsored
breakfast at the ASTA World Travel Congress in November.
Still, Wolff said he sees no problems on the horizon. Five years
ago, agents provided less than one-quarter of Marriott's business.
That figure now stands at about one-third, and Marriott expects it
to grow. "We'll grow and the agent business will grow with us,"
said Wolff.
The biggest reason, Wolff said, is Hotel Excellence. According
to Marriott, when the Preferred Travel Agency program was
announced, only 5,000 agents had graduated from the training
course. About four months later, about 25,000 have completed the
course and 150,000 are enrolled. Wolff said that the majority of
Marriott's business is coming from agencies that are part of the
Preferred Travel Agency program, although he didn't have the exact
figure yet. He said it is possible that the parties can have
another meeting.
Ruden said Marriott probably would not be on ASTA's Christmas
card list. "But we've got a ways until Christmas comes again," he
added.