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Old Apr 9, 2016, 12:35 pm
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Last edit by: Oxon Flyer
Deal closed SEP 23 - http://news.marriott.com/2016/09/marriott-international-expanded-loyalty-benefits/

FAQ :
http://members.marriott.com/faq/#will-rewards-and-spg-be-turning-into-one-program

Will Rewards and SPG be turning into one program?
These are two of the best programs in the industry, and we want you to benefit from everything that makes SPG and Rewards great. We don’t anticipate that the two programs will come together before 2018, and we will keep you informed of any updates. In the meantime, there’s no change to how you book reservations, manage your accounts or earn Elite night credits, points and miles in the current programs.

If I have Lifetime Status in one of the programs, will I also get it in the other program when I link my accounts?
We appreciate your loyalty! Lifetime Status is specific to the program that you earned it in. While linking accounts will not result in Lifetime Status in the other program, your Elite status will be matched to the same Elite tier in the other program. Any existing Lifetime Status you already hold within either program will still be enjoyed within that program. We’re working on more ways to recognize your loyalty and Lifetime Status as we work towards harmonizing the programs, which we don’t anticipate happening until 2018.

You can now link your Marriott Rewards or Ritz-Carlton Rewards account with your SPG account.

It will be a 3:1 transfer ratio between MR-SPG
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Latest on the Starwood and Marriott merger : deal closed on 23 Sep.

 
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Old Apr 10, 2016, 3:23 pm
  #121  
 
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Originally Posted by Visconti
Marriott members embrace, or are at least indifferent to the takeover, whereas the overwhelming majority of SPG members find it extremely unfavorable.
^
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Old Apr 10, 2016, 4:16 pm
  #122  
 
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Visconti is spot on!
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Old Apr 10, 2016, 4:19 pm
  #123  
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Originally Posted by Visconti
the overwhelming majority of SPG members find it extremely unfavorable.
While this may be possible, I'd love to see evidence of this. FlyerTalk does not represent the majority of any group of people (except the group of people who are FlyerTalk members), so just because the majority of people posting in this forum are against it, that's not really indicative of a larger trend.
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Old Apr 10, 2016, 6:16 pm
  #124  
DCF
 
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Originally Posted by SkiAdcock
However, it was/is nice to know if I was in a small town there was/is a Marriott property if I did end up there. Or - having a lesser brand even when in a city where there were full service properties if budget dictated that (ie, being in a city w/ both full & limited service & during a trade show when prices are jacked up, have the ability to stay w/in the loyalty family but not break the company's bank).

I belong to Marriott, Hyatt, Hilton, SPG and when I traveled constantly that was pretty much the ranking of the properties. I really like Hyatt, but let's face it there aren't enough of them. After a # of years I went w/ Hilton as my 2nd brand when I edged away from Hyatt due to breath of properties/brands. At the time Hilton was more consistent in its properties & program than SPG. And also Marriott & Hilton had more properties in major cities than SPG (although that's changed).

And depending on location, there are still cities where Marriotts have more properties (again, London which I travel to quite a bit offers a lot more) & some where SPG will have more (Asia, for example).
I really enjoy your posts - and learn quite a lot from them - but you have a very US-centric view of this. (Well, and UK too. The UK only has one city of more than a million people - hence the limited Starwood footprint there. Starwood has pretty clearly decided that outside the USA, upscale hotels in capital cities is the way to go, not coverage of medium and small cities.)

As I see it:

1) A company with over 80% of its footprint in the USA is acquiring a company which does a much larger proportion of its business outside the USA.

2) The acquiring company has a lower median market niche than the acquired company, reflected in the fact that its top frequent guests contribute a much lower proportion of revenue.

Now, it may be that Marriott is simply buying Starwood as an anti-competitive measure to reduce competition and increase profits in North America, and that it only cares about the US market. If so, your post is more valid than mine.

But it also may be that Marriott wanted to gain access to the extraordinary revenue generated by Starwood's top Platinum guests and to the revenue generated by their network of foreign hotels.

You are effectively judging as more important the fact that Marriott (but not Starwood) has 2 star hotels in small, backward American cities (such as Terre Haute, IN, population 60,000) compared with the fact that Marriott only has half as many hotels as Starwood in Chongqing, China (population 30 million).

And this is why the acquisition of Starwood by Marriott is likely to go badly.

People who need to stay in low quality motels in small, backward cities in the USA already prefer Marriott Rewards.

People who need to stay in high class hotels in major world cities outside the USA already prefer SPG.

And there is hardly any overlap between the two. It is like merging Allegiant Air or Spirit with St Regis hotels. They are both perfectly valid businesses, but what works for one won't work with the other, and if Marriott (or Starwood) think otherwise then they are fools.

Marriott's business model is great for a chain where half the hotels are 1 and 2 star properties in small, backward places. Much better optimised to that market than SPG is. There is no potential yield benefit to giving people a 4 pm late checkout at Fairfield Inn or SpringHill Suites, Terre Haute, IN, when they could buy an extra night for less than $100.

But it's a tone deaf model to try to apply to most of Starwood's network and frequent guests.
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Old Apr 10, 2016, 6:59 pm
  #125  
 
 
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Originally Posted by SFBayGuy
Here it is. The black bar at the bottom contains my name.
nice

-David
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Old Apr 10, 2016, 7:09 pm
  #126  
 
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I swore I wouldn't read this thread as conjecture only makes me nervous, but if you can't lie to yourself, who can you lie to?

Nothing beats earning Fairfield Inn points on business in places like El Centro and spending them in great *wood resorts. But no way that El Centro's will anywhere approximate *wood business Amex earnings: it was great while it lasted. More than any other bit of plastic the Starwood Amex changed my life and I am heaped with gratitude.

There's a saying that "sometimes a curse is a blessing", and the upside here is that the clock is ticking and so time to think of something epic, really over the top. At the end of the day, this merger Sword of Damocles may be the impetus of a new adventure....

Of course, the second half of the saying is, "sometimes a blessing is a curse".
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Old Apr 10, 2016, 7:10 pm
  #127  
 
 
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Originally Posted by DCF
You are effectively judging as more important the fact that Marriott (but not Starwood) has 2 star hotels in small, backward American cities (such as Terre Haute, IN, population 60,000) ...

...

People who need to stay in low quality motels in small, backward cities in the USA already prefer Marriott Rewards.
Was it really necessary to insult people that live in small cities/towns in the USA? What makes them "backward"? Specifically what makes Terre Haute, IN "backward"?

You could have made the point without the insults. Unfortunately, it mars your post and makes it harder to take it seriously

-David
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Old Apr 10, 2016, 7:27 pm
  #128  
 
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Originally Posted by LIH Prem
Was it really necessary to insult people that live in small cities/towns in the USA? What makes them "backward"? Specifically what makes Terre Haute, IN "backward"?

You could have made the point without the insults. Unfortunately, it mars your post and makes it harder to take it seriously

-David
His whole premise is BS anyway. I have any number of friends who travel for a living and are "Marriott people" and like MR just fine. Every time someone around here tries to group-categorize MAR people vs. SPG people they just end up looking silly, IMO.
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Old Apr 10, 2016, 7:38 pm
  #129  
 
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Originally Posted by DCF
I really enjoy your posts - and learn quite a lot from them - but you have a very US-centric view of this.They are both US-owned companies, but OK then. (Well, and UK too. The UK only has one city of more than a million people - hence the limited Starwood footprint there. Starwood has pretty clearly decided that outside the USA, upscale hotels in capital cities is the way to go, not coverage of medium and small cities.)

As I see it:

1) A company with over 80% of its footprint in the USA is acquiring a company which does a much larger proportion of its business outside the USA. That's what makes it a good match. Why would you want to acquire a company that mirrors the acquiring company's own strengths?

2) The acquiring company has a lower median market niche than the acquired company, reflected in the fact that its top frequent guests contribute a much lower proportion of revenue. Because the path to be a "top guest" in SPG is much shorter, coupled with the fact that SPG's revenue is much lower overall than Marriott's

Now, it may be that Marriott is simply buying Starwood as an anti-competitive measure to reduce competition and increase profits in North America, and that it only cares about the US market. If so, your post is more valid than mine.

But it also may be that Marriott wanted to gain access to the extraordinary revenue generated by Starwood's top Platinum guests and to the revenue generated by their network of foreign hotels.

You are effectively judging as more important the fact that Marriott (but not Starwood) has 2 star hotels in small, backward American cities (such as Terre Haute, IN, population 60,000) compared with the fact that Marriott only has half as many hotels as Starwood in Chongqing, China (population 30 million). That's funny - corporations like Thyssen Krupp have a major presence in Terre Haute. I know, I've been there. I suppose nobody is supposed to visit small two-bit companies such as this in order to conduct business with them? Personally I'd rather live in Terre Haute than Chongqing, but that's just me

And this is why the acquisition of Starwood by Marriott is likely to go badly.

People who need to stay in low quality motels in small, backward cities in the USA already prefer Marriott Rewards. Backward? Not entirely sure that someone from Serbia has any standing to call any US city "backward".

People who need to stay in high class hotels in major world cities outside the USA already prefer SPG. Speak for yourself

And there is hardly any overlap between the two. It is like merging Allegiant Air or Spirit with St Regis hotels. They are both perfectly valid businesses, but what works for one won't work with the other, and if Marriott (or Starwood) think otherwise then they are fools. An almost silly over-generalization with no basis in reality

Marriott's business model is great for a chain where half the hotels are 1 and 2 star properties in small, backward places.There you go using that word again Much better optimised to that market than SPG is. There is no potential yield benefit to giving people a 4 pm late checkout at Fairfield Inn or SpringHill Suites, Terre Haute, IN, when they could buy an extra night for less than $100. Maybe their meeting at Thyssen Krupp is at 3 PM and they want to stay till then?

But it's a tone deaf model to try to apply to most of Starwood's network and frequent guests.
Originally Posted by LIH Prem
Was it really necessary to insult people that live in small cities/towns in the USA? What makes them "backward"? Specifically what makes Terre Haute, IN "backward"?

You could have made the point without the insults. Unfortunately, it mars your post and makes it harder to take it seriously

-David
The earlier thread was quite similar.

This fellow and a few others unnecessarily create a horribly elitist view of SPG elites.
Cargojon is offline  
Old Apr 10, 2016, 7:40 pm
  #130  
 
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Originally Posted by Cargojon
The earlier thread was quite similar.

This fellow and a few others unnecessarily create a horribly elitist view of SPG elites.
Indeed. Bravo!
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Old Apr 10, 2016, 8:27 pm
  #131  
 
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Originally Posted by mahasamatman
While this may be possible, I'd love to see evidence of this. FlyerTalk does not represent the majority of any group of people (except the group of people who are FlyerTalk members), so just because the majority of people posting in this forum are against it, that's not really indicative of a larger trend.
While at such early stages, it would be impossible to put numbers on global SPG guest sentiment. I agree that the FlyerTalk community is only a small subset of loyalty program members and guests, and we tend to forget that there are many more frequent travelers who either don't care or don't share their opinions. Nevertheless, Sorenson from Marriott knows there is consistent negative sentiment from SPG members expressed on FlyerTalk and elsewhere in regards to the current state Marriott Rewards program. It has yet to be seen what the future state Marriott-SPG loyalty program will offer.
Who knows.. maybe I might be a fan of the new program. I am hoping for the best, but am expecting the worst.
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Old Apr 10, 2016, 8:28 pm
  #132  
DCF
 
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Originally Posted by Cargojon
The earlier thread was quite similar.

This fellow and a few others unnecessarily create a horribly elitist view of SPG elites.
Maybe it was a poor choice of words.

The characteristics of the market and indeed the small towns to which I was referring are that compared with other OECD advanced economies:

1. A much smaller proportion of people have, for example, a passport. (Which is highly relevant to a hotel business).
2. The median vacation time per year of a person in Terre Haute, IN would be something like 30% of a person in Enschede, Netherlands. (Which is highly relevant to a hotel business).

And by the way, I've been to Terre Haute too.

The word I used was clearly inflammatory, and I apologise for that.

But the point that I was trying to make is that SPG guests are as likely to stay at the "additional footprint" 2 star Fairfield Inn and SpringHill Suites locations as St Regis guests are likely to fly on Allegiant or Spirit.

They are different markets and the people who wanted or needed to stay in those low quality properties in smalltown America already used Marriott Rewards.

And you have still completely failed to address the other issue. The Top 3% of Starwood Preferred Guests deliver 30% of the revenue and 100% of the profits. Marriott has never been able to reproduce that - and it's probably why they are buying out Starwood.

But those people are not captives. If the things which attract them to SPG don't carry over to MR, they will just jump ship to Hyatt or Amex FHR.

Last edited by DCF; Apr 10, 2016 at 8:33 pm
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Old Apr 10, 2016, 8:28 pm
  #133  
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Originally Posted by Cargojon
The earlier thread was quite similar.

This fellow and a few others unnecessarily create a horribly elitist view of SPG elites.
Its way better to have a broad selection of properties within a single program than to have one program for "pedestrian" hotels and one for high end ones.

If I'm going to be in Terra Haute it'd be nice to get the recognition and some benefits for all the stays in the big city.
entropy is offline  
Old Apr 10, 2016, 8:30 pm
  #134  
 
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Originally Posted by mahasamatman
Harder for those, but anyone who has Gold or higher with UA gets Marriott Gold for free.
Yes, and that's why I don't care for MR Gold status, since I have mine through UA. That's a cheap status that I was given without staying at any Marriott properties.

I value SPG Plat enough that I made sure I stayed at enough SPg hotels each year to earn my status. Now that I have LTP, I can assess my options if Marriott screws up the merged MR/SPG program.
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Old Apr 10, 2016, 8:34 pm
  #135  
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Originally Posted by LIH Prem
Specifically what makes Terre Haute, IN "backward"?
Perhaps "backward" was a poor choice of words for the OP, but I can assure you that Terre Haute is no mecca of culture, tourism, or business. I think that assessment does go to the point of the thread - Starwood's footprint doesn't address the third-tier cities like this, whereas Marriott does do it pretty well.
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