Marriot to buy Starwood

[EJB]

http://skift.com/2016/03/21/marriott-investor-call-this-is-what-we-have-in-store-for-starwood/

The Loyalty Programs

Initially, the Marriott Rewards and Starwood Preferred Guest loyalty programs will be in run in “a parallel way” Sorenson said. Eventually, though, both programs will be combined, although it will most likely take years for both programs to become one.

“This is one of the most profound advantages, we think, of this merger,” he said. “Longer term, we’ll look for a combined platform. We think this will generate a hotel loyalty program that truly meets everything a hotel guest would want, and we believe we can position this program so customers can conclude there’s really no other program that they need to be members of. In size, in choice, and in recognition we can provide to our guests, we think this loyalty ecosystem gives us the best tool we can possibly have to compete in the marketplace.”

The way Sorenson described it, Marriott hopes to draw on Starwood’s strength in the luxury and lifestyle space, and add it to Marriott’s strength with business travelers, corporate accounts, and group business.

“With the advantages of investing in only one platform, we expect to be able to accelerate spending not just on the infrastructure but on tools that allow us get to know our customers better, and to personalize our relationships with them. And of course, a strong program will open up more partnership opportunities, including with our great credit card partners, including co-branded credit card partners.”

That last mention of co-branded credit partners could mean good news for Chase, Marriott’s co-branded credit card partner, but bad news for American Express, Starwood’s credit card partner.

Sorenson later said, about SPG, that it “is a powerful program,” acknowledging its strong brand loyalty. “It has a strong group of loyalists who like the brand and the way Starwood treats them when they travel.” But with Marriott hotels added to the mix in a combined loyalty program, Sorenson said those SPG loyalists will have more properties with which to earn points and rewards, and for Marriott to take in a greater share of the market overall.

“Too often, they don’t have a Starwood hotel they can stay in, in some places,” Sorenson said. “By pulling these two programs together over time, and finding some connectivity even sooner that that, we hope those SPG guests find more places where they can stay to earn points.”

[tzifanya54]

^ Basically they will destroy the program slowly.... One step at a time.

[CS1]

^ Basically they will destroy the program slowly.... One step at a time.

based on their language, it would seem to imply that they may keep lifetime plat status. What do you think -- will they make it disappear?

[tzifanya54]

based on their language, it would seem to imply that they may keep lifetime plat status. What do you think -- will they make it disappear?

Even if they keep it, the question is what will it be worth? Take it from a guy whose been Marriott platinum the past couple of years, it doesn't mean much. I've gotten better and more frequent upgrades with spg gold, than Marriott platinum.