Reward Night Information SRD

1.     Are hotels allowed to have restricted periods when they do not have to take a reward night (SRD) reservation?
No. Research indicates that frequent guests do not tolerate blackout periods for reward nights. Therefore, the reward night (SRD) runs off Best Available Rate inventory. The reward night program is designed to protect hotels by allowing reservations from U.S. and Canadian members no earlier than 30 days in the U.S. and Canada, or 60 days prior to arrival at all other locations. Europe/Middle East/Africa members can make reservations 30 days in advance in Europe/Middle East, or 60 days prior to arrival at all other locations. Mexico/Central America/Caribbean members can make reservations 30 days in advance in Mexico/Central America/Caribbean or 60 days prior to arrival at all other locations. Australasia members can make reservations 30 days in advance in Australasia (including Australia, New Zealand, Singapore, Papua New Guinea and Fiji), or 60 days prior to arrival in all other locations. Elite Gold members can book reward nights 50 days prior to arrival, Elite Platinum members can book reward nights 75 days prior to arrival and Elite Diamond members can book reward nights 100 days prior to arrival.

 

2.     How was it determined what point level my hotel was assigned?
Hotels are assigned point levels based on their past ADR results by season. Levels are refined based on past reward night reimbursement history (determined by the average cost to reimburse the hotel for the same time period the previous year). These levels are reevaluated on a semiannual basis and adjusted accordingly. Contact the Choice Privileges Operations team for questions at choice_privileges_SSP@choicehotels.com.  

 

3.     How is a hotel paid for a reward night?

a.     Hotels in the US: After the night audit process runs, hotels using choiceADVANTAGE or Profit Manager will see the calculated reimbursement amount for reward night stays posted to the guest folio. This amount will then be transferred over to the Choice Hotels Accounts Receivable (A/R) account. Your hotel will continue to receive your monthly reimbursement as a credit on your Franchise Bill. Click here for more details.

b.     For Hotels in the US, Canada, Central America and Europe/Middle East (excluding Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden).

                                          i.     Hotels are automatically paid for reward nights and do not have to invoice Choice Privileges for reward night stays. In the US, payment for reward nights will appear as a credit on the hotel's monthly franchise bill. In Canada, Central America and Europe/Middle East (excluding Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden), payment is processed through tacsnet.com (TOPS program).

                                        ii.     Reward night and transaction credits are available for viewing on ChoiceCentral by following the path: Property Info Manager - Franchise Billing - SRD Payment Report

                                       iii.     Hotels are reimbursed for reward nights based on their average daily rate (ADR) and occupancy for the night of the stay. The day ends when night audit is run, typically after midnight. If a hotel is 100% occupied when a reward night is used, reimbursement will be 90% of the ADR plus tax* for the date of the stay. If a hotel is 98-99.99% occupied when a reward night is used, reimbursement will be 70% of the ADR plus tax* for the date of the stay.
*Certain states are excluded from tax reimbursements.

                                       iv.     The percent of reimbursement for reward nights when a hotel is not full in the U.S., Canada, Central America and Europe/Middle East (excluding Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden) will be based on the cumulative number of reward nights the hotel has accommodated as a percentage of their annual available rooms.

·         Hotels that have sold less than 1.5% of their annual available rooms as reward nights will receive reimbursement equal to 40% of their ADR (plus tax if applicable).

·         Hotels that have sold between 1.51% and 2.5% of their annual available rooms as reward nights will receive reimbursement equal to 50% of their ADR (plus tax if applicable).

·         Hotels that have sold more than 2.5% of their annual available rooms as reward night rooms will receive reimbursement equal to 60% of their ADR (plus tax if applicable).

                                         v.     For Suburban Extended Stay Hotel brands, the ADR will be based on the Tier 1 rate.

                                       vi.     If no revenue/occupancy data is available for your hotel on the night of the reward night, or if the calculated reimbursement is less than the minimum reimbursement amount, your hotel will receive the minimum reimbursement amount.

c.     For Hotels in Mexico/Caribbean and Australasia (including Australia, New Zealand, Singapore, Papua New Guinea and Fiji).

                                          i.     The reimbursement process and rates for these hotels are structured differently than the US, Canadian, Central American and Europe/Middle East programs. Contact the Choice Service Center in Mexico/Caribbean or Australasia for more details.

                                        ii.     Payment for reward night stays are processed through tacsnet.com (TOPS program).

                                       iii.     The annual available rooms for each hotel will be set on a fiscal year basis using the number of rooms available on October 1 times 365 days. The annual available rooms for hotels that come online after October 1 will be set using the number of rooms available when the hotel comes online times the number of days left in the fiscal year (October 1 - September 30). The annual available rooms will be recalculated each year on October 1.  

 

4.     What constitutes 100% occupancy?
Out of Order rooms, Guaranteed (GTD) No-shows, Complimentary rooms and Day Use rooms are counted as occupied when calculating occupancy. For example, if a hotel is undergoing a renovation and 10 of its 90 rooms are shut down, and 80 rooms are sold/occupied, including 2 reward nights, then the occupancy for that night is 100% and reimbursement for the 2 reward nights will be at 90% of ADR. If a hotel is turning away business, it is 100% occupied.  

 

5.     Do guaranteed no-shows count towards 100% occupancy?
Yes, regardless of whether or not you eventually collect from the member.

 

 

 

6.     How often are hotels paid for reward nights?

a.     Hotels in the US: Credits to your franchise bill will post on or about the 15th of each month for reward night stays completed during the previous month. Hotels using choiceADVANTAGE or Profit Manager will see the calculated reimbursement amount for reward night stays posted to the guest folio after the night audit process runs. This amount will then be transferred over to the Choice Hotels Accounts Receivable (A/R) account. Click here for more details.

b.     Hotels in Canada, Mexico/Central America/Caribbean, and Europe/Middle East (excluding Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden), Australasia (including Australia, New Zealand, Singapore, Papua New Guinea and Fiji): Payments will be processed through tacsnet.com (TOPS program) and checks mailed to hotels on or about the 15th of each month for reward night stays completed during the previous month.

c.     All Hotels: Reward night and transaction credits are available for viewing on ChoiceCentral by following the path: Property Info Manager > Franchise Billing > SRD Payment Report. This report provides member name, confirmation number, departure date, member number, percent of reimbursement and reimbursement amount for each guest each night.

 

7.     Is the reimbursement for a reward night tax inclusive?
Most hotels are reimbursed for tax; however there are a few exceptions (dependent on state regulations).

 

8.     How is inventory controlled for the Choice Privileges rewards program?

a.     Members earn points for all stays at point eligible rates.

b.     Reward night (SRD) inventory is controlled by Best Available Rate inventory.

c.     Contact the Choice Privileges Operations team for questions at choice_privileges_SSP@choicehotels.com.

 

9.     How is a hotel notified that a member will 'spend' a reward night at their hotel?
The rate plan is identified as SRD when the original reservation is made and on the Reward Night Voucher the hotel receives the date of arrival. The rate amount will display the words SRD Rate on the voucher and in most places within your property management system.

 

10. What does a hotel do with a reward night voucher?
The reward night voucher will be sent to hotels early the morning of arrival to communicate instructions about processing the reward night stay. In the event that a reward night stay is booked on the day of arrival, the hotel will receive the voucher the morning after arrival. The voucher is not required prior to check-in and hotels should always accept the reward night stay without charging the guest for room or tax. The rate plan will be identified as SRD and the words SRD Rate will be displayed as the rate on the voucher. Upon check-in, hotels are encouraged to request positive ID from guests for all SRD stays. Hotels must retain a copy of the voucher and folio. Detailed instructions are included on the reward night voucher sent from the Central Reservation System for each reward night.

 

11. Can a hotel allow a reward night to be booked on the date of the stay?
Yes. A hotel should instruct the guest to contact the Choice Privileges special reservation line to reserve the reward night. Hotels will receive a reward night voucher for these reservations the morning after arrival.

 

12. Can a hotel allow a reward night to be booked more than 30 days prior to the date of arrival?
Yes. A hotel can contact the Choice Service Center and request that they do an override to allow a reward night reservation to be booked outside of the 30 days prior policy.

 

13. What if a reward night is walked?
Choice Privileges members (our best guests) should not be walked under any circumstances, especially a reward night! However, if walking a Choice Privileges member is absolutely necessary, the member will receive the walked night free (under the normal Choice Hotels International walk policy) and still is entitled to a free room night. Hotels must notify the Choice Service Center that a guest was walked. The points will then be added back to the member's account.

 

14. What if a reward night reservation is cancelled on-property?
Reward night reservations can only be cancelled by calling the Choice Privileges reservations line. This is the only way that a member is assured of having their points returned to their account.

 

15. What if a multiple reward night reservation is cancelled during the stay?
The hotel must call the Choice Service Center to advise that a portion of the reward night stay had to be cancelled so the points can be added back to the member's account.

 

16. What does the free reward night include?
Room charges (including extra bed and extra person) and tax only. The member is responsible for incidentals and restaurant charges. 

 

17. Can hotels take 'special' room types out of the reward night (SRD) inventory?
Yes. Specialty suites can be removed from the SRD inventory. These are rooms defined as being unique to the hotel. Standard suites, handicapped rooms, and standard room types are not permitted to be removed from the SRD inventory. To exclude a specialty suite from the SRD inventory, email a list of room types to exclude to Choice Privileges Operations at
choice_privileges_SSP@choicehotels.com.

 

18. What happens if a reward night reservation is a no-show?
Since these reservations are guaranteed by Choice Privileges, the hotel will receive reimbursement for the reward night and the points will be subtracted from the member's account.

 

19. Whom does a hotel call if it has not received a reward night payment?
The
Choice Service Center.