FlyerTalk Forums - View Single Post - Starwood: "Marriott and Starwood stockholders approve merger"
Old Mar 25, 2016, 1:40 pm
  #2942  
Troopers
 
Join Date: Sep 2015
Location: SFO
Posts: 3,881
Originally Posted by spgplat21
I think it's important to note that SPG makes money off the loyalty program. So it would be about trying to make more money off of it, and not just cutting an expense.
SPG (Starwood Preferred Guest) is the loyalty program. Do you mean HOT makes money off the loyalty program (aka SPG)? SPG certainly encourages or incentivize consumers to stay at HOT allowing HOT to make more money, but SPG does not directly generate revenue (except for the sale of SPG points). Side note, IC Ambassador program does generate revenue with its annual fee.

SPG currently holds the pole position (by a wide margin IMO) in hotel loyalty program. So, I'm not sure if increasing benefits, thus driving more consumers to HOT, outweigh the costs.
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