Will Starwood-Marriott Merger Affect DL Crossover Rewards?
Jul 9, 2016, 1:16 pm
#61
Join Date: May 2013
Location: DTW
Programs: AMEX, Ritz LT-Plat Prem, Hyatt Plat, SPG Plat, Hilton Diamond, Delta Plat, United Gold, Sixt Plat
Posts: 866
Jul 9, 2016, 8:15 pm
#62
Join Date: Aug 2001
Location: Wayne, PA USA
Programs: DL MM, Marriott Bonvoy Lifetime Titanium, HHonors Gold
Posts: 7,242
Actually, I'm beginning to think SPG will stay. Notice how, when UA rolled out new bedding, they had an opportunity to do a tie-in with Marriott, the way DL did with Westin, and they did not. Instead they went with some premium New York brand (I forget which) that I normally wouldn't associate with bedding. I suspect that, given the tighter integration between DL and SPG, the DL relationship will survive over the UA relationship. To me, that would be slightly annoying since I use Marriott for my token UA status. Oh well.
Jul 10, 2016, 12:51 am
#63
Join Date: May 2015
Location: DCA
Programs: AA EXP, DL FO, Marriott Titanium
Posts: 6,712
Actually, I'm beginning to think SPG will stay. Notice how, when UA rolled out new bedding, they had an opportunity to do a tie-in with Marriott, the way DL did with Westin, and they did not. Instead they went with some premium New York brand (I forget which) that I normally wouldn't associate with bedding. I suspect that, given the tighter integration between DL and SPG, the DL relationship will survive over the UA relationship. To me, that would be slightly annoying since I use Marriott for my token UA status. Oh well.
Jul 10, 2016, 10:15 am
#65
Join Date: Dec 2014
Location: home airport RSW
Programs: Delta Plat, Marriott Life Gold, ***Princess Status***
Posts: 875
Marriott now has 4pm check out on their app for plat members. This is new for those that have posted they don't do it (maybe they don't do it at JW's?)
Marriott >>> Hilton in Hawaii, certainly on the Big Island
Marriott >>> Hilton in Hawaii, certainly on the Big Island
Jul 10, 2016, 11:29 am
#66
FlyerTalk Evangelist
Join Date: Oct 2001
Location: check swarm
Programs: DL DM & 2MM, SPG/Bonvoid LT Titanium, Hyatt Globalist, $tarbucks Titanium
Posts: 14,404
The tacky Marriott people would be foolish to not continue or even build on the SPG-Delta relationship. So much more that could can be done to work with each others top customers.
Jul 10, 2016, 12:05 pm
#67
Join Date: Apr 2013
Posts: 15
SPG recently started crossover rewards with China Eastern, which I think might have something to do with Delta. Chinese airlines' IT in general sucks. I think Delta might have helped in the integration. SPG and Delta's relationship will prevail I believe. If anything, United will be kicked off. SPG and Delta's relationship has been really close and strong.
Jul 10, 2016, 12:50 pm
#68
Join Date: Jul 2010
Location: Boston & NYC
Programs: DL Diamond;AA Gold; UA Silver; HHonors Gold; SPG Plat
Posts: 350
Actually, I'm beginning to think SPG will stay. Notice how, when UA rolled out new bedding, they had an opportunity to do a tie-in with Marriott, the way DL did with Westin, and they did not. Instead they went with some premium New York brand (I forget which) that I normally wouldn't associate with bedding. I suspect that, given the tighter integration between DL and SPG, the DL relationship will survive over the UA relationship. To me, that would be slightly annoying since I use Marriott for my token UA status. Oh well.
United did launch their new Polaris business class with a bedding tie-in with Saks, the upscale department store whose flagship is in NYC (note, interestingly, however that its part of Toronto-based Hudson's Bay). I'm not sure we can read into this that United is leaving Marriott (as much as I would like too) as much as if the bedding was from another hotel chain.
But everything I think/feel/want to believe ignores all the known unknowns:
* The contractual relationship between the companies. This one probably favors UA as Starwood and SPG ending creates a legal context to end the relationship with DL.
* How much the respective deals actually bring in new customers (and higher profit ones at that) to each company.
* The value/cost of the deals and if the three companies (Marriott, UA and DL) have any interest in keeping it going or would love to use the merger as a chance to exit.
* If a formal AA/Hilton deal actually happens and what it looks like. Its possible Marriott, Hilton, AA, DL and UA all want out--or the opposite. There isn't enough publicly known to answer this.
As much as I love crossover rewards--I essentially get at least one free night a year at a luxury Starwood hotel in a nice city--its hard to see how this continues in its current form given the share size of the new Marriott program. The cost of all those extra miles/points has to be astronomical and one would think Marriott's individual hotel owners might not want to pay the higher loyalty fee.
Mar 10, 2017, 8:07 pm
#69
Join Date: May 2013
Location: DTW
Programs: AMEX, Ritz LT-Plat Prem, Hyatt Plat, SPG Plat, Hilton Diamond, Delta Plat, United Gold, Sixt Plat
Posts: 866
I would be shocked if Marriott kept SPG going. That said, there has been some discussion about creating two rewards programs where an SPG-esque one for the upscale chains (Ritz, St. Regis, Le Meridian, JW Marriott, W, Westin, Renaissance) continues on and another program for mid and down-market program for Marriott, Sheraton, Courtyard, etc. That just seems really complicated, but who knows. Maybe but unlikely.
United did launch their new Polaris business class with a bedding tie-in with Saks, the upscale department store whose flagship is in NYC (note, interestingly, however that its part of Toronto-based Hudson's Bay). I'm not sure we can read into this that United is leaving Marriott (as much as I would like too) as much as if the bedding was from another hotel chain.
As much as I really want to believe this, its going to come down to numbers--and the value such a relationship brings to both parties. Delta is a much larger domestic carrier than UA and UA conversely is a much bigger international airline (in terms of % of passenger revenue miles or ASMs as airlines call it). That means that Delta probably carriers more passengers and that DL frequent fliers probably make more trips (b/c on the whole, international trips on a US carrier is likely farther than a domestic one). So on a basic analysis level: DL would give Marriott more US customers who will stay in hotels more often. Seems like a win for Delta. But that assumes a) Marriott wants to build US business vs. build its business overseas with US-based customers and b) that Delta feels that Marriott has a big base of customers who don't fly that often with them. Its entirely possible that Marriott and Delta customers overlap at a huge percentage. In that case, it makes zero sense for either company to keep working together. The whole point of Crossover was for DL and SPG to get new customers from each other.
But everything I think/feel/want to believe ignores all the known unknowns:
* The contractual relationship between the companies. This one probably favors UA as Starwood and SPG ending creates a legal context to end the relationship with DL.
* How much the respective deals actually bring in new customers (and higher profit ones at that) to each company.
* The value/cost of the deals and if the three companies (Marriott, UA and DL) have any interest in keeping it going or would love to use the merger as a chance to exit.
* If a formal AA/Hilton deal actually happens and what it looks like. Its possible Marriott, Hilton, AA, DL and UA all want out--or the opposite. There isn't enough publicly known to answer this.
As much as I love crossover rewards--I essentially get at least one free night a year at a luxury Starwood hotel in a nice city--its hard to see how this continues in its current form given the share size of the new Marriott program. The cost of all those extra miles/points has to be astronomical and one would think Marriott's individual hotel owners might not want to pay the higher loyalty fee.
United did launch their new Polaris business class with a bedding tie-in with Saks, the upscale department store whose flagship is in NYC (note, interestingly, however that its part of Toronto-based Hudson's Bay). I'm not sure we can read into this that United is leaving Marriott (as much as I would like too) as much as if the bedding was from another hotel chain.
As much as I really want to believe this, its going to come down to numbers--and the value such a relationship brings to both parties. Delta is a much larger domestic carrier than UA and UA conversely is a much bigger international airline (in terms of % of passenger revenue miles or ASMs as airlines call it). That means that Delta probably carriers more passengers and that DL frequent fliers probably make more trips (b/c on the whole, international trips on a US carrier is likely farther than a domestic one). So on a basic analysis level: DL would give Marriott more US customers who will stay in hotels more often. Seems like a win for Delta. But that assumes a) Marriott wants to build US business vs. build its business overseas with US-based customers and b) that Delta feels that Marriott has a big base of customers who don't fly that often with them. Its entirely possible that Marriott and Delta customers overlap at a huge percentage. In that case, it makes zero sense for either company to keep working together. The whole point of Crossover was for DL and SPG to get new customers from each other.
But everything I think/feel/want to believe ignores all the known unknowns:
* The contractual relationship between the companies. This one probably favors UA as Starwood and SPG ending creates a legal context to end the relationship with DL.
* How much the respective deals actually bring in new customers (and higher profit ones at that) to each company.
* The value/cost of the deals and if the three companies (Marriott, UA and DL) have any interest in keeping it going or would love to use the merger as a chance to exit.
* If a formal AA/Hilton deal actually happens and what it looks like. Its possible Marriott, Hilton, AA, DL and UA all want out--or the opposite. There isn't enough publicly known to answer this.
As much as I love crossover rewards--I essentially get at least one free night a year at a luxury Starwood hotel in a nice city--its hard to see how this continues in its current form given the share size of the new Marriott program. The cost of all those extra miles/points has to be astronomical and one would think Marriott's individual hotel owners might not want to pay the higher loyalty fee.