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Old Aug 5, 2018, 7:27 am
  #4677  
imverge
 
Join Date: Feb 2005
Location: Toronto (YYZ)
Posts: 6,279
Originally Posted by tth6133
1) Head of Marriott's loyalty team has said Marriott is still working on its IT system to solve this issue. If a current certificate can be used as is, it won't require an IT solution.
Yes and No - A certificate for a category 1-8 wouldn't require an IT solution but a certificate for a category 9 and any Tier certificate would definitely require an IT solution since those "categories" will no longer exist after Aug. 18 hence those certificate codes used to apply against a reservation would be invalid.

Originally Posted by tth6133
2) Starwood Lurker has stated, with approval from the new loyalty team, that certificate holders should attach their certificates to maximize their "usage". If a current certificate can be used as is, there won't be a need for that.
Starwood Lurker has always advised members before any category change to make a reservation PRIOR to the change to ensure you lock in the lower redemption rate AKA "maximize points usage". Let me break it down this way... if you hold a category 5 certificate and the property is moving up a category you should attach your certificate to maximize its value.

Originally Posted by tth6133
3) This would be much more costly solution than the other simple solution of refunding full 6N worth of points. If Marriott only had these two choices, it would choose the latter. If it had chosen the former, it would have to refund the points-differential (which could be as high as 210K points) to the current cat 8/cat 9/tier 1-3/tier 4-5 certificate holders, and pay much higher reimbursement rates to the very top tier hotels, which could cost up to 100K/night in points in peak season next year (or up to 600K points in total). The choice should be obvious to Marriott.
The least expensive solution is to allow the certificates to be used as is because I believe Marriott will only allow certificates to only be used for standard redemption meaning you'll have to pay the points difference during peak season. I also believe Marriott will not extend the expiry dates of the legacy certificates nor will they allow upgrades/downgrades or refund of points. It will be: use it or lose it.

Also keep in mind the rate Marriott pays each property for a free night is cheaper than refunding the points which can be used to buy another travel package with airline miles
Plus, some members won't stay the full 7 nights which again reduces redemption costs - heck I'm sure Marriott is hoping people don't use them at all like people who buy gift cards and never use them.
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