Is participation in the CEC PSS program optional for Delta Hotels By Marriott franchisees?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the Digital Marketing program, hotels may participate in optional, self-service email marketing campaigns using our designated platform. Email campaigns to drive room nights cost approximately $1,000 to $10,000 per campaign, depending on delivery volume. Email campaigns to drive ancillary spend on food and beverage, spa, golf, skiing, and other amenities require subscription to our designated platform, which costs approximately $200 per month.
The following programs are optional under CTAC:
- (1) OTA Program: This program facilitates the payment of commissions to certain online travel agencies when such travel agencies are the merchants of record in connection with bookings at your hotel at an average rate of approximately 10% to 12.5% of qualified room revenue. See Item 16 for certain conditions and restrictions on our OTA Program; and
- (2) TMC/Consortia Program: This program drives incremental business to hotels by using "Preference Payments" to obtain the highest levels of preference at the lowest possible cost. If you participate in the program, you must pay a Preference Payment ranging from 0.1% to 5.0% of booked rooms revenues for every eligible guestroom night generated by the participating TMC or consortia. We may offer optional addon services to the TMC/Consortia Program at an additional cost.
Hotel-specific gift cards are also available on an optional basis at a cost ranging from $0.77 to $6.41 per gift card.
You are required to participate in any other guest loyalty program or special marketing program we create for Company Brand Hotels (or any subset thereof applicable to your hotel system) and honor all program rules and policies.
We have established a program services contribution to cover the cost of certain programs, systems, and services ("Program Services Contribution"), including: (a) advertising, sales and marketing, promotion programs and related research that are funded through the Marketing Fund described in Item 11; (b) a reservation system; (c) the ongoing cost of certain electronic systems, including rooms and event space inventory and yield management systems, our support of a property management system, our support of a point-of-sale system, our support of a guest feedback tracking and management system, certain costs associated with the mobile key component of the hotel's guestroom lock system, a digital guest services system, an electronic customer folio delivery system, a virtual private network, the provision of a limited number of hotel-based Marriott.com email addresses, an intranet website supplying information such as standards and quality assurance information, the MDash system, our support of encrypted payment processing, a guest experience platform, and a web-based tool that generates discount forms and cards for associates; (d) a guest satisfaction survey system, an event planner satisfaction survey system, and an annual audit under the Audit Program; (e) a centralized travel agent commission processing program; and (f) one license for the Marriott Environmental Sustainability Hub ("MESH").
Source: Item 1 — Fees for Other Services (FDD pages 39–71)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not clear whether participation in the CEC PSS program is optional for Delta Hotels By Marriott franchisees. The document does mention several optional programs, such as self-service email marketing campaigns, where campaigns to drive room nights cost approximately $1,000 to $10,000 per campaign, and campaigns to drive ancillary spend cost approximately $200 per month. There is also an OTA program that facilitates commission payments to online travel agencies at an average rate of approximately 10% to 12.5% of qualified room revenue. Additionally, hotel-specific gift cards are available on an optional basis at a cost ranging from $0.77 to $6.41 per gift card.
However, the FDD also states that Delta Hotels By Marriott franchisees are required to participate in any other guest loyalty program or special marketing program that the company creates for Company Brand Hotels. This suggests that while some programs are optional, others are mandatory. The Program Services Contribution covers the cost of certain programs, systems, and services, including advertising, sales and marketing, promotion programs, a reservation system, and the ongoing cost of certain electronic systems.
To determine whether the CEC PSS program is optional, a prospective Delta Hotels By Marriott franchisee should ask the franchisor directly for clarification. They should inquire about the specific requirements for participation in the CEC PSS program, including any associated costs, obligations, and potential benefits. Understanding the mandatory and optional programs is crucial for making an informed investment decision.