MEA 2023 Wholesale Guidelines

INTRODUCTION Over the past two years we underwent unprecedented times with business conditions being challenging across the region. Thankfully we’re starting to see significant progress in global RevPAR recovery despite the emergence of new variants and ongoing headwinds from the global pandemic.

When it comes to purpose of travel, leisure continues to drive our recovery and thus I would like to address a few aspects relating to our Wholesale strategy.

In Q4 2019, we announced and commenced with our partnership with Expedia Partner Solutions (EPS) as our exclusive redistributor and as such all other companies on a redistribution model were ceased. Within MEA, we carved out Destination Management Companies (DMCs) as an exception given our reliance and unique role they play, to drive leisure, primarily FIT and/or Charter business to our hotels.

That being said, it is not our approach to increase the number of DMC companies that we work with. DMCs remain “an exception” and as such, we need to truly consider a) what are the reasonable parameters in terms of volume that warrants issuance of a “wholesale” contract? b) evaluate each DMC partner’s business and if it aligns with expectations in terms of volumes/revenue and, if not, contracts need to be terminated.

Furthermore, there are isolated cases of DMCs expanding out of their traditional business model and taking a hybrid B2B distributor approach and/or targeting markets outside their DMC scope. In these instances where found, we need to review our contractual relationship and partnership with the respective entity.

There are further detail relating to DMCs within this document, but the underlying ask is that an analytic review of each partners business model and commercial review in the upcoming contracting cycle is to be carefully considered before a contract is issued and performance monitored to those selected post contract issuance.

Within Distribution, we remain committed to advancing our comprehensive distribution strategy which focuses on building and sustaining a channel portfolio that (1) enables us to protect and grow direct channels, (2) helps us acquire new customers, (3) maintains control over when and where our products are sold, and (4) protects our brands and long-term profitability for the

system. A Distribution Learning Series has recently been created that is a great resource for all and provides greater detail on our approach.

Our aim is to remain in a leading position over our competitors and ensure that we can continue to execute on our Wholesale and overarching Distribution strategy. To do so, this requires a collective effort to demonstrate alignment and one voice on our strategy and leverage with those we work with across MEA. As such, I would like to provide you with our guidelines for 2023 wholesale contracting season. In addition to the guidelines, Please take the time to read the document as more detailed information has been provided than previous years to ensure everyone has the clarity, education and understanding of our approach.

Here’s to wishing you all the success for the remaining months ahead!

Neet Kishore Director, Wholesale – EMEA

CONTRACTING TEMPLATES Only Marriott’s approved FIT Yieldable Agreement templates are to be used when contracting a wholesale company. The templates have been carefully crafted to ensure that partners are legally bound by our terms for distribution.

The rates issued within our FIT Yieldable Agreements are correct at time of issuance to the respective client. However, as the name suggests, the hotel has the right to amend/yield the rates as and when required thus rates are not “fixed” for the duration of the contractual term.

Please ensure that your client is educated on this aspect.

When yielding rates, a new contract does not need to be issued every time this occurs. Simply copy and paste the “rate grid” from the contract into an email, highlight the cells where a new rate has been entered and email all relevant partners individually or via BCC collectively. The purpose is to ensure alignment between your offline contract to that of our dynamic partners & EPS. Naturally dynamic rates can fluctuate daily. The overarching approach should be that the yieldable rates mirrors (as manageable as possible) to that offered via dynamic ensuring there is no unfair significant price advantages to our offline contracted operators.

From an offline contracting approach, there are only two business models that an offline contract is appropriate for use. 1. The company operates as a DMC. 2. The company operates as a Tour Operator. If you are unsure on the classification, and business model please click here, and if needed seek advice from your Area Director of Sales & Distribution.

The 2023 DMC Yieldable Agreement template & 2023 Tour Operator Yieldable Agreement template supersedes any previous contract templates issued. Therefore, please use the updated templates attached with immediate effect for any new contracts applicable to bookings for this year, in addition to 2023 contracting period.

Points to note in relation to the Yieldable Agreement templates: •

Reminder: Prior to any issuance of a Yieldable Agreement the Company must be in receipt of a valid Marriott N Number

•

Only areas highlighted in yellow are for your review and completion. Please do not amend any other sentences.

•

No clauses are to be added, amended nor removed. It is not permitted for you to sign, nor countersign any wholesale contracts, including any addendums the client issues in relation to GDPR, Health & Safety, Anti-Corruption or any other topic.

•

Add and/or remove any information as relevant within Clause “Incidental and Additional Charges”. Examples may include inserting meal plans, 3rd person supplements & maximum permitted occupancies per room type.

•

Insert any additional room categories relevant. Recommendation is that you only contract room categories that are sold 80% of the time by the respective DMC /Tour Operator as opposed contracting every room category within your inventory. Note, any room categories you do contract, must also be available via the other wholesale channels – i.e. loaded for our dynamically connected partners and also EPS Wholesale rates.

•

Rates can be contracted on a Room Only (for DMCs only), B&B & Half Board basis.

Rates on B&B should be priced the same irrespective of single or double occupancy.

•

Release dates can be inserted within the contract (to indicate that the yieldable contracted rates are not available if a booking is made within the release period set)

•

Stop sell/Blackout dates can be inserted in the contract

All contracts are based on free sale basis. Only exception may be pertaining to select Tour Operator contracts.

As a reminder, please also ensure that the following are not included within any Yieldable Agreement •

Commission clauses surrounding net rates

•

Additional clauses pertaining to remuneration e.g., incentives

•

Allocations (Approved, where required in Tour Operator contract but not applicable to DMCs)

•

Early bird offers

•

Insertion of any ‘promotional’ rates. In addition, even as a supplement to the yieldable agreement, no market specific promotions should be offered to any DMC. See EMEA Continent Promotions.

Should there be significant risk to the business by implementing any of terms above with your current contracted partners, please consult with your Area Director of Sales & Distribution

EMEA CONTINENT PROMOTIONS As of 2021 the Continent has launched several Wholesale Promotional initiatives that your property can elect to participate in. Should you accept, the offers are down streamed to all our dynamically connected partners, EPS and, at your discretion, can be offered to DMCs and Tour Operators that you have a yieldable agreement with. If you decide to offer the promotions to non-connected partners, it is imperative to always ensure rate parity between connected and non -connected accounts. Violations can have severe consequences and may result in a breach of contract with our connected partners.

.

NON-CONNECTED PARTNERS DMC YIELDABLE AGREEMENT - DESTINATION MANAGEMENT COMPANIES (DMCs’) DMC Yieldable Agreement Template_2023 attached for your use.

DMC Yieldable Agreements are only permitted to DMC Operators that have an existing contract with your property and with whom, you wish to extend an agreement for the 2023 contracting cycle. Please refrain for auto-renewing current contracts and only issue to DMCs that have a proven track record of generating legitimate DMC revenues into your hotel. The Agreement issued must be signed by the DMC, with a copy returned, before reservations are accepted.

As a polite reminder, any new DMC entity (i.e., newly formed company or DMC division) or existing DMC that did not obtain a FIT Yieldable Contract as of January 2020 for your specific property (irrespective if they work with sister properties) that would now like to partner, are to obtain inventory directly from Expedia Partner Solutions (EPS) and it is not permitted for a FIT Yieldable Contract to be issued.

The only exception to this, is if you have had written confirmation from your Area Director of Sales & Distribution to proceed (noting that a case reasoning will need to be provided). From analysis undertaken during Q1 2022, we have noticed select properties that have contracted new DMC companies in 20’ & 21’ without seeking approval. If it is established and found that there are new partners signed to a hotel this current year and beyond that were not pre-agreed by your Area Leader, you will be informed to terminate the agreement.

For any new DMC Company/Entity that wants to contract your hotel the contracting process would be as follows: 1. Obtain written approval from your Area Director Sales & Distribution 2. Company to apply for a Marriott N number via marriottwholesalers.com/marriott 3. Upon receipt of a Marriott N number, a DMC Yieldable contract can be issued 4. Only once the agreement is signed by the DMC and returned are they eligible to make bookings Note: All existing companies in receipt of a yieldable contract should have an N number. If it found that there are contracts issued to companies who do not have an N number, you will be informed to terminate the agreement and the new DMC company/entity process would apply.

All other DMCs, either new, or with whom you no longer wish to extend an agreement should be referred to Expedia Partner Solutions (EPS) for inventory.

Newley opened or operating properties are to provide their respective Area Director, Sales & Distribution with a list of prospective DMCs’ to be contracted for 2022/3. In collaboration with the Area Director, Sales & Distribution an approved list for contracting will be determined. Please ensure when submitting your shortlist that you highlight room night expectation, key source markets, in addition to any other comments that should be taken into consideration.

NON-CONNECTED PARTNERS TOUR OPERATOR YIELDABLE AGREEMENT - TO BE USED WHEN DIRECTLY CONTRACTING TOUR OPERATORS Tour Operator Yieldable Agreement Template_2022 attached for your use.

Tour Operator Agreements are only permitted to those companies that have an existing contract with your given property and wish to extend the partnership into 2023 contracting cycle. This contract applies to those that DIRECTLY package a room rate issued with a flight component and sell to onward agents and/or end consumers as a complete PACKAGE. Examples include Emirates Holidays, Virgin Holidays, EWTC, Tez Tours etc.

Note: Any NEW Tour Operator opportunities that require an agreement needs to be discussed and approved by your Area Director of Sales & Distribution before issuance. Any Tour Operators that are not approved, needs to be directed to Expedia Partner Solutions downstream approved partner TBO Holidays using the following registration website: https://www.tboholidays.com/Registration.aspx For all approved and/or appliable Tour Operator agreement being issued, the following criteria would need to apply: A Tour Operator Yieldable Agreement can ONLY be used if one or more of the following is applicable: o

When guaranteed room allocations are required as part of the contract (does not include Tour Series that should be contracted under a group contract). Guaranteed room

allocations are not impacted by any stop sales issued if the Tour Operator is within their release period. o

When contracting operators within German, Swiss & Austrian Markets that do not allow properties to yield above the initial rates contractually issued. Therefore, please contract and set rates at a price point you feel confident that your property will not need to exceed beyond at the time of issuance. At 14 days after the contract is signed, the rates must fall back in line with DMC Yieldable Agreement rates issued should the rates differ.

Note:

It is not permitted for Room only rates to be offered within Tour Operator

Agreements.

Tour Operator rates are to mirror the rates issued within DMC Yieldable Agreement at all times.

Please use the Tour Operator Template Request & Promotions 2023 file, complete information required under tab “TO Contract Requests” and submit to your Area Director of Sales & Distribution for approval, before a contract is issued.

It is imperative that you are assured and confident on the Tour Operator’s distribution model and that there is no risk of any potential rate leakage (i.e. rates being distributed without being directly packaged with a flight component). Issuance of a Tour Operator Agreement is to be in the name of the Tour Operator irrespective of if you have a direct contractual agreement, or if Tour Operators reservations are fulfilled via a DMC. Therefore, to clarify, if you have a direct relationship with a Tour Operator the name of the Tour Operator is to be stated in the contract. If you do not have a direct relationship with the Tour Operator (should the business be fulfilled via a local DMC), the name on the contract remains in the name of the Tour Operator fulfilled by the DMC (e.g. Virgin Holidays c/o Elevate LLC). The contract itself can also be issued to the DMC whom in turn will either countersign on behalf of the Tour Operator or ensure the end client signature is obtained.

NON-CONNECTED PARTNERS GERMAN TOUR OPERATORS Please note that the initial rates issued to any German Operator cannot be increased when contracting offline via a a Tour Operator Yieldable Agreement (i.e you can yield rates below, but

only increase upwards to the initial rates contracted). Therefore, please contract at a level you feel confident that your property will not need to exceed beyond the initial rate issued. You can always lower and yield rates to that required later that would be in accordance with the DMC Yieldable Contracts issued, dynamic and EPS rates, ensuring parity.

Any queries concerning contracting process with German partners should be directed to: Sebastien Adams, Director Leisure Accounts, Global Sales Central Europe (T) +49 6196 496 2722 | (M) +49 172 612 3008 | sebastian.adams@marriott.com

DMC/TOUR OPERATOR CREDIT FACILITY For those key partners that have consistently supported the hotel, at times, we have equally flexed in timeline for payment based upon the mutual business relationship. Since the start of the COVID19 outbreak, many companies, including our own have a need to maintain cashflow and as such the level of credit issued/extended needs to be re-assessed.

As such it is important that for any contracted DMC and/or Tour Operator whereby a credit limit is reached or exceeded with no clear direction from the client as to a payment plan that this is flagged to your Area Finance Team. It is not the responsibility of your Area Team to chase the monies owed, however if the pattern emerges across several properties’ discussions and a payment plan schedule may be supported at an Area Level with the given client. If reservations continue to be accepted at property level despite the monies outstanding, the consequential business risk will remain at property level.

MARKETING CONTRIBUTIONS Hard marketing funds can continue with tour operators in order to be featured within brochures, marketing campaigns or any other marketing related activities that legitimately promote your property. Marketing contributions can also be offered to a DMC to onward promote your hotel to their given network of agents/tour operators (or to specific, mutually agreed agents/tour operators that is fulfilled via the DMC), on the basis that the DMC is transparent as to how the funds will be utilized. When working with a Tour Operator or DMC the use of marketing funds should be a collaborative approach to ensure your investment is spent wisely.

CONNECTED PARTNERS – DYNAMIC There are a number of Tour Operators and Airline Companies that have a Global Leisure Operator Dynamic Agreement signed with Marriott and as such have been provided with a connectivity feed that enables them to access rates and inventory in real time directly from MARSHA. These companies should remain with dynamic as the sole booking channel only. No Yieldable Agreements to be issued.

Please refer to Marriott Global Source (Resources - Dynamic Overview and Participating Operators xls) to familiarise yourself with the full list of connected partners and the Global Account Managers that are responsible for the respective account/s.

Hybrid Accounts

There are select companies that are dynamically connected, though permit issuance of a Yieldable Agreement where required and until further notice.

The only companies that are permitted to operate on a hybrid model are as follows: •

DER Touristik

•

Etihad Holidays

•

FTI Touristik

•

Southall Travel

•

Rustar Tourism

•

Trailfinders

•

TUI

•

Virgin Holidays

Whilst a yieldable agreement can be issued, we encourage that the hybrid accounts utilize dynamic as the primary booking channel. In addition, any accounts mentioned above that is managed by a sales leader should be targeted on the account holistically and not purely on offline business generated (i.e focus on production should be on dynamic and via yieldable

agreement and any room nights/revenue targets should be based on the account holistically irrespective of booking channel used by the company).

MARKETING CONTRIBUTIONS Hard marketing funds can also be invested across our dynamic partners (individually by company). In order to understand the marketing opportunities available, directly speak with the GSO, Global Account Manager responsible for the particular company of interest. Examples may include increased ranking via back-end algorithms, banner ads, specific tagging to generate point of sale awareness, e flyers etc.

Please do not blanket approach all GSO leaders to understand marketing opportunities and instead focus on specific accounts that you believe there would be a genuine potential to increase market share based on your knowledge of the account that can then be looked into further.

EXPEDIA PARTNER SOLUTIONS With EPS being Marriott’s exclusive re-distributor, it’s important that frequent meetings (in person or hosted virtually) are held with your respective Expedia Market Manager. For key leisure focused properties, a set monthly reoccurrence is recommended, with all other hotels scheduling a minimum of a quarterly review. Both Sales and Revenue representatives should be present at each meeting in addition to your MDS/Digital associate where relevant.

EPS is one of three channels that drives wholesale business to the hotel. It’s therefore key that there is just as much focus and attention on business performance via EPS to that of offline contracts and our dynamically connected accounts.

All information relating to Marriott’s Wholesale Distribution Solution can be found on MGS and should be the first point of reference. In particular it is highly recommended for new joiners to review MEA Webinar 1 for an understanding on our rationale to partner with EPS and the evolution on our wholesale distribution strategy.

Whilst EPS operates dynamically, this is no different to when we previously partnered with bedbanks (e.g. Webbeds, Hotelbeds etc) dynamically and should be part of a sales leaders focus. Whilst revenue leaders are responsible for entry and management of rates and

availability within the system, sales leaders should ensure, in collaboration with revenue, that rates and offerings remain competitive via this channel mirrored to offline contracts and our dynamically connected partners.

Revenue Leaders – Please refer to Self-Auditing Hotel Set Up Guide for EPS Optimization to ensure that your hotel set up for success.

To assist with engagement the following may be useful.

EXPEDIA PARTNER SOLUTIONS For any Tour Operators & DMCs that are not contracted at property level (due to business rationale, they operate on a re-distributor model or the fact they are not eligible based on our guidelines) could still have an opportunity to obtain inventory via Expedia Partner Solutions (EPS).

Within MEA, the prime EPS downstream partner is TBO Holidays, approved by Marriott. To expedite a dynamic connection by way of a web-based portal, a client can simply register their details directly using the link below:

https://www.tboholidays.com/Registration.aspx A member TBOs Sales Team will directly discuss the approval process from thereon along with any related commercial matters and terms and conditions of use. Any DMC that benefits from a current yieldable agreement can also register with EPS via TBO Holidays should they wish to have dynamic access and operate on a hybrid.

To set expectations, upon registration, ………………………..

Any business an end operator books via TBO’s portal will materialize as EPS business. Any questions or queries relating to bookings is to be directed via your Expedia Market Manager and not TBO directly.

Any delays in response from TBO Holidays to the operator can be raised to Neet Kishore, Director, Wholesale EMEA to support.

WHOLESALE PROCESS ALIGNMENT

WHOLESALE RESERVATION ENTRIES Ensure all reservations made on-property from DMCs/Tour Operators must be entered into EMPOWER or MARSHA, and not through the hotel’s Property Management System (PMS). In many cases when this type of reservation is made in the PMS, the wholesaler ID (known as a N number too) is stripped out of the reservation when transferring to MARSHA. This results in inaccurate tracking of production that can impact effectiveness in assessing wholesale performance from an above property perspective for which accurate data is cruel as part of subsequent distribution strategies made for the Continent. In addition, when entering a reservation directly in PMS, availability is not checked and consequently can result in revenue losses for the hotel as hurdles are bypassed or overbooking.

N NUMBER ENTRIES The Marriott wholesaler “N Number” ID must be entered in MARSHA prior to the sell line to retrieve the wholesaler’s profile details. The command is -P'N##### (# are normally 5 digits), once the details are retrieved, you may continue with the sell line.

For those entering in EMPOWER: 1. Click on Travel Planner 2. Select “Wholesaler” from the drop-down box 3. Enter the Operator’s N number. Only after this stage should you continue with the additional reservation details. If no N number is found, please initially consult with the Sales Leader responsible for the account to check that a N number was obtained prior to a contract being issued. Is not, the contracting process will need to be followed by the Sales Leader. Please also see N Number Reservation Flow.

Please do not assign a wholesale booking against a general “local wholesale” rate code that may enable a reservation to be entered without an N number. Audits are going to take place this current and subsequent year to ensure this practice isn’t taking place.

WHOLESALE PROCESS ALIGNMENT REPORTING – REVIEWING WHOLESALE BUSINESS It has become apparent that when reviewing wholesale production properties are either using Opera based or MARSHA reporting tools.

For clarity and consistency, the primary tool should be Wholesale Contribution Tool and not e.g.

Opera Profile reports. For franchise properties ITM 15 is recommended.

In addition, for EPS specific data a DAT 2 & DAT3 can be utilized.

Area teams through to HQ utilize MARSHA derived reports and therefore is important that business is analyzed using the same source on any official reporting and to be used as the primary tool. Historical differences in delta have been due to reservations entered into Opera and not mirrored in MARSHA in addition to N numbers being omitted because of reservations made in Opera. This causes significant delta discrepancies in addition to being unable to track effectively by Operator when MARSHA based reports are used by above property personnel.

The only differentials between the reports should be that: •

Opera Profile Reports provide net room revenue, excluding VAT

•

Wholesale Contribution Tool provides gross room revenue, including VAT

If you have any further questions in relation to Wholesale reporting, please contact Revenue Support: EMEA.RMOperations@marriott.com

RESOURCES The following links and information are a useful guide to learn more information on Marriott Wholesale Distribution Strategy.

CLASSIFICATIONS: Dynamic Connected Partner:

Client that has a Global, centrally signed, dynamic agreement with Marriott.

Please refer to MGS for list of current clients.

DMC:

Distributes inventory to other receptive operators. They specialize in handling arrangements (hotels, transfers, visa & sightseeing etc) for incoming visitors to a destination.

A DMC Yieldable Agreement can be issued if the client matches this business model.

Tour Operator:

An entity that is primarily engaged in the business of offering packaged travel products and services. Tour Operators DIRECTLY package a room rate issued with a flight component and sell to onward agents and/or end consumers as a complete PACKAGE. Brochures are typically created to promote their packages & itineraries. If a client matches these criteria and falls within the eligibility for a contract based on the guidelines a Tour Operator Yieldable Agreement can be issued, if required. A contract can also be in the name of the Tour Operator, fulfilled via an appointed DMC, only where applicable.

Redistributor:

A entity whose primary business is consolidating inventory and onward distributing inventory/content without controlling the end point of sale. By way of example, though not limited to, these would include those on a bedbank model. Any company that operates on this model is not to be contracted and instead referred to EPS. Please review section Expedia Partner Solutions.

If you require further guidance on client eligibility and/or which contract to issue, please speak with your Area Director of Sales & Distribution for advice.