Go Back  FlyerTalk Forums > Miles&Points > Discontinued Programs/Partners > Starwood | Starwood Preferred Guest
Reload this Page >

Select Member Exclusive Email offer [Targeted], 30 April 2015

Select Member Exclusive Email offer [Targeted], 30 April 2015

 
Old May 11, 2015, 12:58 pm
  #166  
 
Join Date: May 2010
Location: jfk
Programs: AA- exp 8.2MM, SQ, DL, spg plat
Posts: 284
Originally Posted by esquesk
Not in the eyes of the shareholders of a publicly traded company.
Then who is their best customer???
wdchuck1 is offline  
Old May 11, 2015, 1:40 pm
  #167  
 
Join Date: Aug 2011
Location: CDG
Programs: SK Gold, AF Gold, Marriott Platinum
Posts: 3,683
This whole situation mimics a very typical FMCG scenario - when you run a promo too often, customers get used to it and the promo price becomes the benchmark. Competitors follow, creating a price war that runs margins into the ground. Then at some point, one of the players says "enough" and cuts on promos drastically. Sooner or later, despite growing market share, others follow in order to (re)create healthier margins for themselves.

Now, I'm not saying that the two industries are entirely comparable, but when I look at my own example, with the year-round promos, I amass enough points to make every 4th or 5th night a free one, easily losing Starwood 20-25% of revenue they would otherwise have had from me, and I'm only a lowly Gold - I can only imagine what the percentage is for heavy corporate travellers. Are such percentages workable for the hotel industry? I won't pretend to know the answer, but I can see why a healthier global economy that we're currently enjoying would disincentivise promos. After all, the original idea behind hotel loyalty programmes was to offer systemwide preferential treatment (such as priority check-in and late checkout) - not free nights.

Anyway, since promo-sensitive customers are so eager to jump ship as soon as the carrot is gone, the problem can be fixed by simply restarting good promos if revenue drops too much
gojko88 is offline  
Old May 11, 2015, 2:44 pm
  #168  
FlyerTalk Evangelist
 
Join Date: Jun 2007
Location: Toronto
Programs: UA 1K, AC MM E75, Marriott LT Ti, IHG Da Amb, Hyatt Glob
Posts: 15,472
Originally Posted by megalab
Start hyperventilating because I've been targeted again, with the same offer as last November. At that time I was, and had requalified for, Plat50. While it seemed odd that SPG felt a need to entice me to stay more, I hadn't stayed at SPG and had no bookings in the month between requalifying and when the offer was sent.

This year I'm way off pace to requalify as Plat50 due to SPG not being where I went so I could see their computers flagging me as someone needing a nudge. However, that's probably giving them too much credit; this appears too random and/or too broad to be more than an experiment as to what types of promos yield the most incremental business for which types of customers, rather than a bonus to "special" customers.



I got the same offer as you back in Nov. During that promo I had a 1 night, two room stay and the two stay credits counted for the bonus points, as I expected. I expect the same will be true this time.
Wow, just wow.

William, guess you shouldn't be surprised at how unfair this seems. Are some of SPG's customers more Preferred than others? I know if I ask you to comment on this, you'll say you have no idea what the marketing team is doing.

Can you at least tell us that as SPG's social media representative that you are provifing feedback from the FT community to your mktg dept. Seriously, targeting the same people twice while totally ignoring others??? I would love to be a fly on the wall in SPG's marketing war room. What are they thinking?
margarita girl is offline  
Old May 11, 2015, 2:55 pm
  #169  
Company Representative - Starwood
 
Join Date: Nov 2000
Location: Austin, Texas
Programs: Marriott Employee Level
Posts: 31,593
Originally Posted by margarita girl
...Can you at least tell us that as SPG's social media representative that you are provifing feedback from the FT community to your mktg dept...
Yes; as are all of the other Social Media Specialists.

Best regards,

William R. Sanders
Social Media Specialist
Starwood Hotels & Resorts Worldwide

[email protected]
Starwood Lurker is offline  
Old May 11, 2015, 3:45 pm
  #170  
A FlyerTalk Posting Legend
 
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 100,334
Originally Posted by Football Fan
Exactly true - as I said, I will keep canceling Starwood stays for that very reason. I'm already qualified as Lifetime Plat, so nothing to lose, really. In the meantime, LHW is getting a lot of business from me. Hotel Majestic/Barcelona over W Barcelona. Etc.
The Majestic is a much better location, but of course it's a very different style.
MSPeconomist is offline  
Old May 11, 2015, 3:51 pm
  #171  
A FlyerTalk Posting Legend
 
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 100,334
Originally Posted by wdchuck1
Then who is their best customer???
It's about profitability, not just total revenue.
MSPeconomist is offline  
Old May 11, 2015, 8:46 pm
  #172  
 
Join Date: Feb 2003
Location: San Rafael, CA
Programs: Life SPG Plat, 7X NH DIA
Posts: 2,840
Just another Datapoint
8 year Plat, 13 stays booked in the qualifying period. No Offer
schoflyer is offline  
Old May 11, 2015, 8:53 pm
  #173  
 
Join Date: Jul 2011
Programs: UA 1K, SPG Platinum, Hyatt Diamond, Hilton Platinum, Marriott Platinum
Posts: 568
Select Member Exclusive Email offer [Targeted], 30 April 2015

I must admit the promo has incentivized me. I've booked more nights in SPG v other over the coming month.
LeviFlight is offline  
Old May 11, 2015, 8:55 pm
  #174  
A FlyerTalk Posting Legend
 
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 100,334
Sadly I'm not a target here.
MSPeconomist is offline  
Old May 11, 2015, 9:42 pm
  #175  
 
Join Date: Jun 2007
Location: JAX
Programs: UA Plat MM, AA Gold MM, Marriott LTT, Hyatt Globalist
Posts: 3,770
As a loyal SPG LTP, I can kiss all targeted promos goodbye.
CIT85 is offline  
Old May 12, 2015, 7:56 am
  #176  
 
Join Date: Jul 2013
Posts: 75
Originally Posted by alanslegal
I agree. They aren't. These guys are happy to move business because of a few thousand points. Sadly, and the truth hurts, is that there are 10x, 20x, 30x and maybe more the amount of elites out there who don't participate on FT but stay in the same amount of nights each year as these complainers do and continue to stay at SPG properties. Those customers are the best ones - the ones that don't need incentives to stay, because the current benefits match or already exceed their expecation and needs.
If you think that SPG, or any hotel/air/ company, has clear data / knowledge of which ones of their elite customers "participate on FT and complain", you are sadly mistaken. I'm sure they would LOVE to have that information but it is extremely challenging to not only attain it , but also track it.

More importantly, the customers that complain or make remarks on FT, are likely the same customers that are very vocal with their friends/relatives/co-workers about the airlines they fly and hotels they stay in. A key measure in customer service surveys is how likely you are to be vocal / recommend a certain brand and I'm sure FTers are near the top of that list.

Now, I'm not saying that FT users are a large chunk of their business or are their "best" customers, BUT I do think it is a mistake to alienate some elite customers and not others. From a "valuing your customers" perspective, there's no reason why person A and person B both have X nights this year / last year and have the same status level but they don't receive similar promos. The most logical explanation is that they are excluding some loyal guests who will book stays REGARDLESS of promotions because most of these guests won't even know these targeted promos exists. This, unfortunately, includes some FTers who read up on this and get upset, but that's the cost of business for SPG.
alvarez16 is offline  
Old May 12, 2015, 8:35 am
  #177  
FlyerTalk Evangelist
 
Join Date: Oct 2011
Location: ATL
Programs: DL Scattered Smothered Covered Medallion, Some hotel & car stuff, Kroger Plus Card
Posts: 10,742
Originally Posted by mahasamatman
Maybe they feel these people aren't really some of their best customers?
Originally Posted by MSPeconomist
It's about profitability, not just total revenue.
+2

Assume that on the whole, SPG is seeing its properties meet or exceed desired occupancy %s during a very busy time of year. What guest would they rather attract?

SPG Plat who already stays on a corporate rate every week, consumes free internet, free breakfast, lounge amenities, bonus points, free water bottles, MAGC points, etc.

Joe Schmoe who has booked a comparable prepaid rate to save a few bucks, pays for everything he consumes, and takes the $5 F&B credit on the rare occasion he uses MAGC.

Business travelers and elites as a group may provide the most revenue for some hotels, but on a per room-night basis, I'd question whether they are the most profitable.

Targeted promos like this are in the same family as FCM buy-up fares being complained about in the airline forums. When given the choice between customers who consume add-ons for free vs. customers who will either pay for those things or not consume them at all, what would you expect a business to choose?
gooselee is offline  
Old May 12, 2015, 9:00 am
  #178  
A FlyerTalk Posting Legend
 
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 100,334
Originally Posted by gooselee
+2

Assume that on the whole, SPG is seeing its properties meet or exceed desired occupancy %s during a very busy time of year. What guest would they rather attract?

SPG Plat who already stays on a corporate rate every week, consumes free internet, free breakfast, lounge amenities, bonus points, free water bottles, MAGC points, etc.

Joe Schmoe who has booked a comparable prepaid rate to save a few bucks, pays for everything he consumes, and takes the $5 F&B credit on the rare occasion he uses MAGC.

Business travelers and elites as a group may provide the most revenue for some hotels, but on a per room-night basis, I'd question whether they are the most profitable.

Targeted promos like this are in the same family as FCM buy-up fares being complained about in the airline forums. When given the choice between customers who consume add-ons for free vs. customers who will either pay for those things or not consume them at all, what would you expect a business to choose?
Are you assuming that a $5 F&B credit costs the hotel less than 500 points? To me, it's not clear and a lot depends on whether you believe that the $5 credit leads to a $30 bar bill in the hotel versus leaving the property or foregoing drinks.

For airlines, some of us have been arguing that elites should get discounts on FCM buy ups since elites already get free checked bags, elite lines, sometimes lounge access, etc. versus these amenities otherwise costing kettles more than the fare difference.
MSPeconomist is offline  
Old May 12, 2015, 10:55 am
  #179  
FlyerTalk Evangelist
 
Join Date: Oct 2011
Location: ATL
Programs: DL Scattered Smothered Covered Medallion, Some hotel & car stuff, Kroger Plus Card
Posts: 10,742
Originally Posted by MSPeconomist
Are you assuming that a $5 F&B credit costs the hotel less than 500 points? To me, it's not clear and a lot depends on whether you believe that the $5 credit leads to a $30 bar bill in the hotel versus leaving the property or foregoing drinks.

For airlines, some of us have been arguing that elites should get discounts on FCM buy ups since elites already get free checked bags, elite lines, sometimes lounge access, etc. versus these amenities otherwise costing kettles more than the fare difference.
You're right, the $5 vs. 500 *points is a bit fuzzy. I was just throwing them in with the laundry list.

That FCM argument is ridiculous.

Response from airline: Fine, we'll stack the benefit for elites on FC fares. Now you get 6 free checked bags, all of which you'll continue to not use as you lug an overstuffed rollaboard into the OHB.

If elite benefits can be redeemed for discounts off the actual fare/rate, then shouldn't coach tickets also be discounted $25 every time an elite doesn't check a bag? Or should I receive $15 every time I skip the breakfast buffet? Surely neither of those services actually costs the airline or hotel that much to provide, which is exactly why they are the things that can easily be offered to elites for free while also generating significant profit margins from nonelites.
gooselee is offline  
Old May 24, 2015, 5:24 am
  #180  
Moderator: Asiana & Qantas Frequent Flyer
Aman Contributor Badge
 
Join Date: Dec 2006
Location: STR/SYD/SMF
Programs: QF SG, LH SEN, OZ D+, HH D, SPG P
Posts: 14,344
As so often, I am a target. Just not for this promo.
DownUnderFlyer is offline  

Thread Tools
Search this Thread

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.