Aside from whether any brands will disappear it is the future of Marriott and Starwood's loyalty programmes that has raised a lot of questions since the merger was announced.
Such is the demand from the combined 110 million members that the group has announced its changes earlier than originally planned, says Andrew Watson — VP, digital, loyalty and portfolio marketing, Europe at Marriott. All three programmes, Marriott Rewards, Starwood Preferred Guest (SPG) and The Ritz-Carlton Rewards, will be merged into one although it currently doesn't have one unified name; that will be revealed in 2019 (also to be confirmed is the UK credit card product amid changes in regulations and American Express's business model, as analysed by BTiQ last week).
As a non-member and someone who knows little about the schemes, the news looks good for card holders. They're expected to earn on average 20% more points for every dollar spent; Starwood points will be tripled and there will be one points currency from 1 August. Travellers can book, earn and redeem across all 6,500 hotels in the 29 brands, which means they can earn points quicker and also earn on food, drink and spa spend.
The loyalty-industry journalists at the European press announcement were surprised to hear how much Marriott has kept of both programmes. There will be no blackout dates; Starwood's Suite Night Award upgrade proposition will apply across the brands; airline loyalty partnerships remain and the Moments experience purchases and auctions will be expanded to include items such as attraction tickets. A Free Night Award chart will be adopted across all hotels with standard, peak and off-peak pricing on a market by market level.
The changes are the latest since the Marriott/Starwood merger was announced which, along with Hilton, have also included switching to 48-hour cancellation policies and cutting agency commission. Direct sell campaigns are particularly pushed through loyalty programmes while buyers say they expect negotiated rates to rise in 2018.
With this latest announcement could we see more travellers sign up and possibly more book direct? The scale certainly widens the attraction of the programme, even to those like me not really into loyalty schemes. The introduction of Starwood's quirkier brands and growth of fresher Marriott ones may entice modern travellers. The fact points can not only be used for free nights but for sightseeing, one-off events, flights and to buy from the likes of Apple, Nike and ASOS via the More retail platform may appeal to non-frequent travellers.
A BTiQ analysis in September 2016 showed there were 55 million Marriott Reward members and 23 million in the Starwood Preferred Guest programme — totalling 78 million. It is unlikely The Ritz-Carlton Rewards programme has as many as either, so as the combined three now claim to have 110 million members it is clear there has already been a large increase in 18 months. With benefits that cut company costs such as free Wi-Fi and rewards that complement the concept of traveller centricity; what do these changes mean for hotel programmes?