Program Assessment & Renegotiation Support-Global Multi-brand Lodging Company
Background
Our client and its card issuer had developed a strong working relationship and a strong performing credit card program
The credit card agreement was approaching its termination date
The credit card issuer provided a proactive proposal for agreement renewal
Our client was seeking an independent assessment of the proposal to ensure that it was competitive in market given the size and scope of the card program
Our client was also seeking renegotiation support for the payment network agreement
Engagement Objectives
Assess the strength of the card issuer proposal based on the size and scope of the program and recent market activity for similarly situated card programs
Identify areas for enhancement in the proposed financial and non-economic terms
Negotiate directly with the card issuer on behalf of our client
Support the execution of a revised alliance agreement
Assess the payment network agreement
Negotiate the payment network agreement
Results
Long-term agreement extensions with the incumbent card issuer and payment network were secured
Secured significantly enhanced (25%+) financial terms above original issuer proposal
Secured significant enhancement to payment network contributions
Several new, market competitive terms were added to the agreement
