I disagree with a Gold and Preferred Gold. Too confusing. If they need distictions, have more levels (some for comps) such as Tin, Bronze, Silver, Gold, and Platinum. But then it gets too hard to make much difference from one level to another AND more complex for hotel employees to know who gets what.

I think airlines, hotels, etc. do need a "tool" to get those using competitor's products to switch. But I think the best way is like AA does (or did last year): Have a challenge. e.g.: Stay 7 nights in the next 60 days and we will give your Gold.

OR (to gain frequent travelers): If you are Gold with Hotel chain X, we will make you gold in our program AFTER you stay 6 nights in the next 60 days and also give you 5,000 bonus points. But do not comp the top status level (Platinum /diamond, etc.). Airlines could do same with 10 segments in 60 days.

Although this also waters down status a little, it does not give free status to many who travel only 10 - 15 days a year, which the programs are not really shooting for anyway. And if SPG Gold switch to HH Gold and vice versa, we really don't add too much to the total numbers competing for Gold benefits.