Marriott International, Inc. takes the hospitality world by storm as it unveils a groundbreaking partnership with MGM Resorts International’s BetMGM, launching an unmatched rewards collaboration in the realm of online sports betting and iGaming. This move follows their prior venture offering reciprocal earning and redemption benefits to loyal members of Marriott Bonvoy and MGM Rewards programs. The innovative alliance enables patrons to amass and redeem points across the illustrious 16-hotel MGM Collection in Las Vegas and other destinations, easily accessible via Marriott.com and the Marriott Bonvoy app.
This strategic integration facilitates the merging of Bonvoy and BetMGM accounts. Customers can now earn BetMGM Rewards points by participating in wagers through the BetMGM sports betting app or engaging in activities on the prestigious online casino platform. These earned points can be converted into Marriott Bonvoy points, with an annual cap of up to 100,000 points. Subsequently, members can utilize Marriott Bonvoy points for complimentary future stays at any of the 30 hotel brands under the Marriott Bonvoy umbrella, spanning over 10,000 global destinations.
BetMGM CEO Adam Greenblatt lauds the partnership with Marriott Bonvoy as a game-changer for their company. Expressing excitement over extending their brand’s reach to a broader audience, Greenblatt emphasizes how players can now leverage their gaming activities to access the diverse spectrum of experiences offered by Marriott Bonvoy.
Focus on Loyalty Program Expansion
Marriott reaps the fruits of its loyalty program’s robust growth, boasting nearly 196 million members worldwide under Marriott Bonvoy. The company leverages this loyalty program for its marketing strategies, actively promoting collaborations like Uber, Eat Around Town, and co-branded credit cards. The Marriott Bonvoy app witnessed a notable 22% increase in room nights in 2023, as the company prioritizes enhancing customer experience across various booking channels through a multi-year technology transformation initiative. The goal is to amplify member engagement beyond hotel stays by fostering successful collaborations within the Marriott Bonvoy ecosystem, including co-branded credit cards. The company reports a strong uptick in global acquisitions of card members, leading to an 11% year-over-year growth in card spend.
Backed by robust customer acceptance of credit card programs and an increase in credit card average spending, Marriott foresees elevated contributions from credit card fees in 2024. The company projects a 9-10% year-over-year surge in total non-RevPAR-related fees for 2024, driven by robust growth in credit card and residential branding fees.
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In the past year, Marriott’s shares soared by 52.4%, eclipsing the industry’s growth at 37.1%.
Zacks Rank & Key Picks
Presently holding a Zacks Rank #3 (Hold), Marriott stands out as a prominent player in the hospitality industry. Within the Zacks Consumer Discretionary sector, some noteworthy stocks include:
Trip.com Group Limited TCOM with a Zacks Rank #1 (Strong Buy), boasting a remarkable trailing four-quarter earnings surprise of 53.1%, on average. TCOM shares surged by 21.4% over the past year, demonstrating positive market performance.
Additionally, Royal Caribbean Cruises Ltd. RCL holds a Zacks Rank #2 (Buy), with a promising trailing four-quarter earnings surprise averaging 26.4%. RCL shares skyrocketed by a remarkable 109.1% over the past year.
Expanding on these numerical victories, the Zacks Consensus Estimate for both TCOM’s and RCL’s 2024 sales and earnings per share indicates substantial growth compared to the previous year.
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