Record year in deals; Bonvoy app downloads rise; digital direct grows
It was good news all around at the Marriott International media briefing this week as the hotel group announced a record-breaking year in 2024 in the Asia Pacific, excluding China (APEC), region.
The numbers speak for themselves – it signed a record 109 deals across 11 markets, contributing 21,439 rooms to the region’s development pipeline, and closed the year with 77,532 total rooms in the region’s year-end pipeline.
Saying that “APEC remains a pivotal region in our company’s growth strategy”, Rajeev Menon, President, Asia Pacific excluding China, Marriott International, said that exceptional growth was driven by key development milestones, market expansions and the introduction of new brands in sought-after destinations.
Rajeev Menon, President, Asia Pacific excluding China, Marriott International
At the media briefing, Menon, who had just flown in from a red-eye flight from India, called it a “rocket ship that is going at a phenomenal pace”, adding, “The reality is revenge travel is now well behind us. What we are definitely seeing is a clear trend in spending patterns.”
A few key trends are fuelling the Marriott “rocket ship” in APEC.
The rise in intra-regional travel
A defining trend in the region is the rise of intra-APEC travel. Pre-pandemic, intra-Asia travel comprised around 37-38% of Marriott’s business. Today, that figure has surged to nearly 60%, highlighting a significant shift in regional mobility and spending patterns.
Marriott attributes this shift to a hyper-local strategy, which has successfully doubled its Marriott Bonvoy membership base since 2019. Localized engagement efforts, such as launching Marriott.com in Bahasa, Vietnamese, and Thai, have strengthened its foothold in key markets.
Loyalty programme members now contribute 70% of occupancy in APEC hotels, reinforcing Marriott’s customer retention and direct booking strategy.
Menon said its local language websites are “similar or in more languages than some of our big OTA partners and to us, that was an important factor to make sure that we are very relevant with the local communities where we operate our hotels”.
He said it was the big shift in intra-regional travel, and then US and Europe, that is helping us “push these incredible numbers”.
Marriott International’s 2024 milestone openings in Asia Pacific excluding China (APEC).
Clockwise from top left: 600th property in APEC, Adelaide Marriott Hotel; 150th property in India, Katra Marriott Resort & Spa; 50th property in Malaysia, Penang Marriott Complex; 100th property in Japan, Four Points Flex by Sheraton Osaka Umeda.
New generations of travellers changing luxury sector
The rise of Generation Z and how this next generation will impact luxury travel was shared by Oriol Montal, Managing Director Luxury, APEC, citing a report that more than 80% of this generation would put their savings into a luxury vacation before buying a luxury item.
Oriol Montal, Managing Director Luxury, Asia Pacific excluding China, Marriott International
They are also seeking “transformative adventures – they want to go to other parts of the world and have those experiences that will reshape their thinking” and experiential offerings.
Hence Marriott’s entry into new experiences such as tented camps, just opened in Kenya, and partnerships with organisations such as Sotheby’s where it’s launched “Iconic Pieces. Extraordinary Experiences” as well as launching the Ritz-Carlton Yacht Collection which Montal said would be launching cruises in Asia in December with “incredible itineraries”.
And guess which market in APEC is most willing to spend on luxury experiences? India. “More than 89% of high net worth individuals in India told us, we are planning to spend more money on travel,” said Montal.
As such growing the luxury portfolio in the region remains a key focus, accounting for 19% of signed deals in 2024. More than 20 agreements were signed representing 4,600 rooms in the region across six Marriott International Luxury Group brands, meeting the increasing demand from affluent travelers seeking high- end, experiential stays in both established and emerging destinations.
This includes the expected debuts of EDITION in Jakarta, Indonesia, and Mumbai, India; The Ritz-Carlton in Jaipur and Udaipur, India; a second W Hotels in Singapore; and more.
Bonvoy app downloads doubling year on year, shift from web to mobile
Chief commercial officer, John Toomey, also gave an update on the Marriot Bonvoy programme, which covers 30 brands, including its new homes and villas business, offering over 15,000 curated homes and villas in the region.
John Toomey, Chief Commercial Officer, Asia Pacific excluding China, Marriott International
The programme, which has more than 219 million members, has evolved from a traditional loyalty programme to a lifestyle platform, with partners such as Rakuten and Gojek, and sponsoring events such as Taylor Swift concerts and F1 and these initiatives have resulted in increased stickiness and growth in app downloads and usage.
He said the programme has grown 40% year over year from 2020 to 2024, with rise in engagement and app downloads growing 100% year over year.
“More and more people are downloading the app across the world and certainly within the region,” he said.
More importantly, he said, its digital direct room nights have grown 30% year over and most striking is the shift from the web to the mobile app. “70% of our bookings now are coming through the mobile app, and 30% through the web. If you were to look at maybe five, six years ago, that those numbers probably would have been reversed, so you are seeing a trend here.”
New brand debuts, new destinations
In light of these trends, the company will continue to expand its portfolio in the region across market segments, including its debut in the midscale segment and its expansion of its luxury portfolio.
In 2024, Marriott signed 109 deals representing 21,439 rooms in APEC, bringing its regional pipeline to 363 properties and 77,532 rooms – a 12% year-over-year increase. India, Japan and Indonesia were the highest growth markets in the region, comprising 72% of the region’s deal signings in the year.
Multi-unit agreements and conversion opportunities played a key role in the region’s pipeline growth, with conversions representing 36% of 2024 signings. Marking the company’s regional debut in the affordable midscale space, Marriott launched Four Points Flex by Sheraton in Japan, as part of a strategic multi-unit agreement with KKR to convert 14 properties across 10 cities in Japan. In November 2024, the brand celebrated its official debut in the region and the company’s 100th property in Japan with the opening of the Four Points Flex by Sheraton Osaka Umeda.
The company debuted in Papua New Guinea with the opening of Marriott Executive Apartments Port Moresby, increasing its operating presence to 22 countries and territories in APEC.
Following the brand’s success in Japan, South Korea and Australia, the lifestyle-focused Moxy Hotels brand also made its debut in key cities, including Moxy Bengaluru Prestige Tech Cloud in India, Moxy Putrajaya in Malaysia, and Moxy Bangkok Ratchaprasong in Thailand, catering to a new generation of travelers seeking vibrant and design-forward stays.
The company also celebrated significant opening milestones in APEC, including:
- 600th property in APEC – Adelaide Marriott Hotel, Australia
- 150th property in India – Katra Marriott Resort & Spa
- 50th property in Malaysia – Penang Marriott Complex
- 100th property in Japan – Four Points Flex by Sheraton Osaka Umeda
All in, Marriott International in APEC closed 2024 with 635 open properties across 25 brands in 22 countries and territories.
