Can Delta Hotels By Marriott franchisees negotiate their own agreements with online distribution channels?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
You may only solicit or accept reservations for your hotel through the means we designate or approve in writing. We currently have distribution agreements and relationships with online distribution channels including Expedia, Priceline.com, Booking.com, and Travel Ease. Access to your hotel's inventory by these channels is typically facilitated through a direct or third-party managed interface with our designated reservation system. In certain circumstances, some of our contracts with online distribution channels provide for access to hotel inventory through other means, such as by extranet. Franchisees may elect to participate on the terms set forth in our distribution agreements or may negotiate their own agreements with any online distribution channels as long as they are consistent with our designated best rate guarantee policy (as described in Item 16) and other applicable standards (which include criteria for approval of third-party distribution channels). If you elect to negotiate your own agreement with an online distribution channel, we will be under no obligation to support your business relationship with that online distribution channel, including by making available the use of our programs and systems such as our designated property management system, CTAC, and our designated reservation system in connection with the use of that channel. We prohibit franchisees from using certain online distribution channels and limit the inventory franchisees may make available to customers through certain online distribution channels.
Source: Item 12 — TERRITORY (FDD pages 102–103)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, franchisees have the option to negotiate their own agreements with online distribution channels. Delta Hotels By Marriott currently has distribution agreements with channels like Expedia, Priceline.com, Booking.com, and Travel Ease, and access to a hotel's inventory is typically facilitated through a direct or third-party managed interface with their designated reservation system.
However, franchisees who choose to negotiate their own agreements must ensure these agreements are consistent with Delta Hotels By Marriott's designated best rate guarantee policy and other applicable standards, including criteria for approval of third-party distribution channels. If a franchisee chooses this route, Delta Hotels By Marriott is not obligated to support the business relationship with that online distribution channel. This includes making available the use of their programs and systems such as their designated property management system, CTAC, and their designated reservation system in connection with the use of that channel.
Delta Hotels By Marriott also prohibits franchisees from using certain online distribution channels and limits the inventory franchisees may make available to customers through certain online distribution channels. This means that while franchisees have some flexibility in negotiating agreements, Delta Hotels By Marriott retains control over which channels are used and how inventory is managed. This is a fairly common practice in franchising, as franchisors seek to maintain brand consistency and control distribution channels to maximize revenue and customer satisfaction across the entire system.
Prospective franchisees should carefully consider these conditions and restrictions when evaluating the potential benefits of negotiating their own agreements. It's important to understand the implications of not receiving support from Delta Hotels By Marriott for these independently negotiated relationships and to ensure compliance with all brand standards and policies.