What is the 'Program Services Contribution' for Delta Hotels By Marriott intended to cover?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
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").
Except as designated by us, the Program Services Contribution generally does not cover costs, expenses or fees for any other programs, systems, or services, including without limitation: (i) the purchase or installation of, or training for, systems for your hotel (including new or replacement systems); (ii) revenue management services; (iii) technology and systems security; (iv) hotel employee training; or (v) residential licensing. Costs paid by the Program Services Contribution include our costs of development, maintenance and support, management, oversight, administration, salaries, and overhead (including collection and accounting).
Source: Item 1 — Fees for Other Services (FDD pages 39–71)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the Program Services Contribution is designed to cover the costs of specific programs, systems, and services. These include advertising, sales and marketing, promotion programs, and related research funded through the Marketing Fund. It also covers the reservation system and the ongoing costs of certain electronic systems, such as rooms and event space inventory and yield management systems.
Delta Hotels By Marriott also uses the Program Services Contribution to support a property management system, a point-of-sale system, a guest feedback tracking and management system, and certain costs associated with the mobile key component of the hotel's guestroom lock system. Additional services covered include a digital guest services system, an electronic customer folio delivery system, a virtual private network, and a limited number of hotel-based Marriott.com email addresses. The contribution also supports an intranet website providing information such as standards and quality assurance, the MDash system, encrypted payment processing, a guest experience platform, and a web-based tool for generating discount forms and cards for associates.
Furthermore, the Program Services Contribution covers a guest satisfaction survey system, an event planner satisfaction survey system, and an annual audit under the Audit Program. It also includes a centralized travel agent commission processing program and one license for the Marriott Environmental Sustainability Hub (MESH). However, the Program Services Contribution generally does not cover costs, expenses, or fees for other programs, systems, or services, such as the purchase or installation of new systems, revenue management services, technology and systems security, hotel employee training, or residential licensing. Costs paid by the Program Services Contribution include Marriott's costs of development, maintenance and support, management, oversight, administration, salaries, and overhead, including collection and accounting.