With special guest Hoyt Harper from Starwood Preferred Guest
Randy Petersen
Greetings......all, we are ready to talk travel. Tonight on FlyerTalk Live! our guest is Hoyt Harper, Senior Vice President, Business Development and Marketing for the Starwood Preferred Guest program. I do think of Hoyt as Mr. Preferred Guest as he's been relentless in the pursuit of the world's best hotel guest program. Actually, I think he also wants to be the world's best frequent flyer program with all the clever ways his program has become a frequent flyer bank. Hoyt was the guy in charge when the whole Starwood thing came about. What to do with the old Westin and Sheraton programs and what could they do to make it unique and make it work. Hoyt, welcome
Hoyt Harper
Thanks Randy for inviting me to participate. I've been looking forward to this evening!
Randy Petersen
As you all know, Hoyt did surprise us all with the infamous "No Blackouts" program launch as well as the Free Fridays and more. Hoyt, welcome to what seems a secondary SPG home. While there may be other larger programs in terms of members, for some reason the Starwood Preferred Guest program has more posts than any other frequent guest program. Any idea how that happens? Are you really the guest program that people love to talk about?
Hoyt Harper
I guess because we spend so much time monitoring what goes on here. We learn a lot about the industry and our own program by listening.
Randy Petersen
Well you've certainly got some of the FlyerTalkers attention...
cigarman
I love Starwood... BUT they are very limited to urban areas. When will we see more properties in other areas. For example Hilton has Hampton almost everywhere. When will 4 points expand to compete in more mid sized cities?
Hoyt Harper
Gosh I really don't know. We've been adding about 20 to 30 4 points a year. I'm not sure if we'll accerlate the growth.
Randy Petersen
Well, let's talk about things in the SPG program...I've got a question for you Hoyt... Last week I was reading about some new time share stuff you're doing with SPG...what's that all about?
Hoyt Harper
We've launched "Starwood Vacation Network" as part of a new exchange service associated with Starwood Vacation Ownership. Owners will soon be able to convert their week of ownership for STARPOINTS....Owners will also have a number of ways to earn points...for referrals and other activity.
Randy Petersen
So if i understand you correctly, if i have one of your time shares and don't want to use the week i have, i can turn it back in to you and you would give me bonus starpoints for it?
Hoyt Harper
That's the deal! Then you can redeem anywhere within the Starwood system!
Randy Petersen
I have to ask you about Las Vegas. I get a lot of email from folks complaining about being in and out of that market. Your latest news is that you are back in for a while?
Hoyt Harper
Absolutely. Vegas was one of our most popular redemption locations. Caesars and SPG were made for each other!
Randy Petersen
For those of you who want to ask questions, we'll try and get to as many as possible tonight - just one favor...please try and limit them to Starwood Preferred Guest topics......Hoyt probably doesn't know what brand soap is used in the Sheratons.....With no blackouts, that has to be a tough decision to get back in with them? There's many times i can't even get in there with real money, let alone hotel points. Can you still promise the no blackouts there?
Hoyt Harper
Yes, Caesars committed to honoring ALL of our terms and conditions. As long as they have availability (for cash) they must honor awards... besides we pay them for the room!
Randy Petersen
Now, correct me if I'm wrong, but in addition to using my points for free rooms at Ceasars, I can also redeem points for gambling chips? I ask that because Hilton seems to do rather well in their option to do the same at their properties there.
Hoyt Harper
This benefit is coming by the end of the quarter. We had some conversion ratio issues to sort out. You'll also be able to EARN points on your gaming line of credit!
Randy Petersen
EARN......then I vote that the next FlyerTalk annual convention be in Las Vegas. I'm sure cigarman would second that......That's pretty novel...and the atmosphere isn't all that bad either. Now, I've got you warmed up, let's go to the audience for a question......question please?
Hoyt Harper
Count me in! I'll need a better nickname. I was thinking points pusher!
Mikel at WebFlyer
This question was submitted earlier by vindesante: I'd like to clarify a response that I recently received from a customer service rep when I called SPG.....,My husband and I are planning on attending two different Sheraton time share presentations while on vacation in April, in a 5 day period. Will we have any problem with receiving points for both presentations into one of our accounts? The SPG rep told me "no problem" but I'd like to hear from you as well.
Hoyt Harper
I'm happy that you're planning to visit our Vacation Ownership products. I'll make sure you get your points. Just give me your number and your travel plans.
Randy Petersen
that seems easy enough.....next question, let's get this going now that we're all warmed up. NEXT
Mikel at WebFlyer
This question was submitted earlier by Laird Hamberlin: Why does Sheraton not give Starwood Points when the account is a direct bill account? We have decided to change hotels (still direct billed) where we will get FF points. Any thoughts on changing this policy???
Hoyt Harper
This is an old rule that probably doesn't make sense anymore....The basic idea was, if the bill was paid centrally then the traveller wasn't making the buying decision. I'll look into it.
Randy Petersen
That's a unique appraoch because all other programs do have that restriction. I do know that there have been times when i choose the hotel and it still gets direct billed. NEXT QUESTION
MileKing
Why were the Gold and Platinum qualification requirements reduced this year?
Hoyt Harper
Only the Platinum level was changed (i think). We cleaned out a lot of "grandfathered" platinums from the old programs...We're trying to increase our share of elite travelers. And, while we lowered the level, all of those in the platinum group will have truly earned it.
Randy Petersen
Hoyt, there's been long time rumors of a new elite level to be introduced into SPG. Could you put to rest that as a rumor or that as something you are working on?
Mikel at WebFlyer
This question was submitted earlier by Jay Sultan:Is there any plan to create a 4th "Super Platinum" level? I earned Platinum status twice in 2000.
Randy Petersen
Gee, me and Jay want to know the same thing...Hoyt we got you on this one.
Hoyt Harper
In the short term, we're focused on improving service delivery and providing new personal incentives.
Randy Petersen
what about long term? Too easy an answer......
Hoyt Harper
Randy, you'll be the first to know! We're trying to combine technology and our concierge services to really enhance the guest experience. We're planning to [offer] more platinum only promotions....more
Randy Petersen
man, now all the FTers will be calling me all the time since you say I'll be the first to know....HA! NEXT QUESTION
Sparky
I love the no blackouts concept but it seems like it takes longer to earn a free stay at a good resort with Starwood compared to Hilton or Marriott Honored Guest. Have you thought of offering free nights for fewer points that do have some restrictions??
Hoyt Harper
Sparky, not true! Try staying at the Marriott Camel Back - it's blacked out from Jan. thru Apr. I have a whole chart comparing marriott to starwood ...how much spend you have to do to earn... it's a lot closer than you think. Did you hear about our new sponsorship of the PGA Tour....want tickets? Do you want to play in a tournament?
Randy Petersen
Hoyt, I'm sure there's some Tiger Wooods wanabees online tonight, what's this all about? The PGA. Count me out, my golf score average and bowling score average are the same......
Hoyt Harper
PGA Tour and the Senior Tour is now sponsored by Starwood. We're the official hotel, vacation ownership and loyalty program of the tour. With this sponsorship, we'll have access to players, tickets to tournaments and we're planning some fun things for platinum members at some of our great resorts! plz note: I can't golf either, but I'll chase some balls with you!
Randy Petersen
I'm not sure if there has ever been an "official loyalty program" of any sporting event or group. Is this a first?
Hoyt Harper
I think so! We're paying for our sponsorship (in part) with STARPOINTS. The touring players get their own accounts to obtain rooms!
Randy Petersen
This is pretty cool news....NEXT QUESTION
Commie
can we redeem points for tour tickets?
Hoyt Harper
Commie, we're working on just that. Stay tuned!
Randy Petersen
That's very neat, you mean Tiger and many of us are in the same league together?
NEXT QUESTION
nikepate
Are there any considerations to start offering Double Dipping similiar to Hilton Honors program??
Hoyt Harper
Not really. We looked at it when we launched SPG. We'd rather give you more of one currency than a little of two. Last time I checked, about 70% of HH points were never redeemed!
Randy Petersen
Yikes.... NEXT QUESTION
Roadrunner
Why do hotels in Europe offer breakfast with the room and call it the AMERICAN PLAN.
kyklin
Can nights stay at Starwood properties booked with Starwood vacations count for SPG points/nights?
Hoyt Harper
Yes. We give 500 points on stays of 3 nights or less...1000 for 4 or more
Randy Petersen
OK, let me butt back in. I really need to get some scoop out of you tonight Hoyt, although the PGA thing is very cool. Here's the scoop. I've been following some intelligence (I can't tell you who I heard it from) that you were going to relaunch a new credit card....Truth or rumor? You are now on the spot......
Hoyt Harper
it's true! it's true! We've been negotiating a deal for two years now....more
Randy Petersen
This is not out there anywhere else then...more details Hoyt. Cool, a genuine FlyerTalk scoop.......
Hoyt Harper
Randy, I told you we wouldn't do a card unless it was the best in the industry. Well we've got the deal done (almost). It will launch in June....one point per dollar, convertable to 6 US carriers and 15 international, no fee the first year...
Randy Petersen
Hummm....will that be a co-branded AmEx or a Visa?
Hoyt Harper
I can't say, but if you have an old Sheraton AMEX card, you won't have to reapply...
Randy Petersen
Uhh, I noticed you say the deal is almost done.....this is early then? Is this news for InsideFlyer or just between us FlyerTalkers right now?
Hoyt Harper
Give me another week, but I'll call you first!
Randy Petersen
Rather than risk you losing your job sharing this much with us - and we are all appreciative - let's go on to the NEXT QUESTION....
Mikel at WebFlyer
This question was submitted earlier by James Brett: Your program has always been absolutely stellar, with THE most personable, friendly and helpful people in the industry. Congratulations! How can you maintain the prestige, status and special nature in all respects of Platinum, when, in my opinion, after the level of qualification has been dropped, and as a result such a massive number of people qualify and dilute the ability for Starwood to truly 'honour' the status?
Hoyt Harper
We won't dilute Platinum. We've removed those members who no longer qualify in order to promote platinum and a truly earned, elite level. We appreciate your business and we want to improve our service delivery and provide more compelling offers to you. Thanks for the business.
Randy Petersen
NEXT QUESTION
Kremmen
Many hotel schemes allow conversion of their points to frequent flyer points on various airlines. Has Starwood ever considered allowing conversion back the other way?
Randy Petersen
oooooo, good question.....I know that Hilton did that with United a few years back....so it has been tried.
Hoyt Harper
Yes but the math generally doesn't work. The conversions I'm aware of require customers to lose a lot of their value. I don't like promoting bad deals.
Randy Petersen
NEXT QUESTION
Mikel at WebFlyer
This question was submitted earlier by Jeffrey Strashun: I own in the original Vistana(Fountains)and love it. However, RCI trading is not so easy. Why can't we join the Starwood Points program and trade internally?
Hoyt Harper
We are! we just launched the program three weeks ago. You'll be able to convert your week into Starpoints!
Randy Petersen
right time to ask that question then...NEXT QUESTION
Mikel at WebFlyer
This question was submitted earlier by DavidLee: Is there any fact to Bass buying out Starwood? Or is this just a meaningless rumor?
Hoyt Harper
Oh I hope so! I'd have a lot of fun trying to integrate Priority Club and SPG. Seriously, I couldn't tell you if I knew.
Randy Petersen
Hoyt, we're almost done with the first hour. You want to stay on just a little longer for a few more questions?
Hoyt Harper
Sure!
Randy Petersen
Then NEXT QUESTION IT IS....
JayBrian
Hoyt, you say no fee the first year for the credit card, that means a yearly fee after that. The current card has no fee. Starwood must be offering a large signup bonus like the delta/amex card. Is that true??
Hoyt Harper
I've said more than I should have. Please give me another week.
Mikel at WebFlyer
This question was submitted earlier by Jay Sultan: Are there any further promotionals planned for ClickReward redemption? When you launched the relationship, the exchange rate was 2-1 for a time. Any chance that will happen again in the near future?
Hoyt Harper
We're meeting with the Clickrewards folks in two weeks. I'll put it on the agenda.
Randy Petersen
good timing for that question...NEXT QUESTION
Spartacus
Are all of the vacation resorts RCI-affiliated? I agree with the Jeffrey, RCI trading is spotty. In addition to the internal Starwood features, has any consideration been given to switching to Interval International? My experience (I have several properties and belong to both) is that Interval properties are generally nicer and better kept. RCI has nice properties as well, but the vast number of them are just 'ok.'
Hoyt Harper
The Starwood Vacation Network is designed to facilitate exchanges within the starwood family... depending on which property you own, we'll still use RCI or II for the external exchanges
Randy Petersen
Looks like the time share thing is a popular topic......NEXT QUESTION
MileKing
No other loyalty program has offered "no blackout dates" and "no capacity controls". How can Starwood continue to do this....aren't the individual properties concerned?
Hoyt Harper
It's real simple. We assume that more of our points will be redeemed than the other programs....We pay our hotels more to accept rewards, so they're happy and our customer are happy!
Randy Petersen
I've got a question Hoyt - which single hotel program do you consider your toughest competition, the one that is very close to yours in marketing ability....Marriott Rewards?
Hoyt Harper
I think marriott has earned a reputation for running consistent hotels. They've been the market leader. Their program supported the brand. I actually think that Hyatt runs a better good program...I'd rank Hyatt no.2 , marriott 3
Randy Petersen
all after yours of course I assume. Interesting answer, not sure if I would have guessed that NEXT QUESTION
Mikel at WebFlyer
This question was submitted earlier by Sergey: One of the greatest features of the SPG program is 1:1 conversion to many airline miles. However, I don't see anywhere in the rules that says whether the miles I convert must be earned within SPG or can be transferred. For example, I would like to take 100,000 Amex Membership Rewards points (a lot more than I have SPG points), transfer them to SPG, and then to AAdvantage. Can I do that?
Randy Petersen
ahhhh...the mileage junkies are coming out....
Hoyt Harper
You can make this transaction, however please bear in mind that the conversion ratio is 3 to 1 , AMEX to Starwood... it works ok for hotel awards but not for airline mileage.
Randy Petersen
NEXT QUESTION.....
Mikel at WebFlyer
This question was submitted by Alexander earlier: When I check-in and check-out of a hotel I always show my Preferred Guest card. However, the points for my stays have never been creditied. They always seem to go to my airline account and not my hotel account. What else can I do? I always specify that I want hotel points and not airlines miles for my stays. When I e-mail after my stay, I am told it has already gone through, but I insist that it be canceled. I asked for points not miles, and I have no control over what the receptionist does in the computer. What can I do to avoid this in the future? Thank you.
Hoyt Harper
Please send me your number and I'll fix it. It sounds like your account was tagged for "airline direct deposit"...where your points get converted into airlines and are automatically sent to your airline.
Randy Petersen
Nice customer service from the top guy.......NEXT QUESTION
Kremmen
Hoyt, have you ever thought of doing more for non-US members in terms of opportunities? Clickrewards is (theoretically, at least) limited to US, Canadian and English members. Your credit card will no doubt be US-only. In every hotel programme I'm in, I just convert the points to frequent flyer points, because there is no way to "top up" the hotel points.
Hoyt Harper
Yes, we're trying to be less UScentric! We plan to offer more leisure products, and merchandise on a global basis!
Randy Petersen
NEXT QUESTION
Mikel at WebFlyer
This question was submitted earlier by Dr. Lynwood D. Sumner, Jr: I have been a Westin/Starwood Preferred Guest for a while. Why are there so many limitations on the 50% off rewards?
Hoyt Harper
Like any leisure rate plan, there are availability limitations. If you can tell me specifically where the problem exists, we'll see what we can do.
Randy Petersen
OK Last question for Starwood before we move to an open forum...
MileKing
What is the story with the final sweep for the American Airlines/Starwood WJ promotion (3000 miles after 3 stays)? The promo ended December 31, but stays going back to late October have still not received the bonus. The Platinum desk says they don't know when the final sweep will occur.
Hoyt Harper
I'll check tomorrow a.m. I haven't heard about this problem.
Randy Petersen
Hoyt, I think we've worn you out tonight. On behalf of the thousands of FlyerTalkers, I want to thank you for your candid remarks tonight. I can see why you've become a favorite of this crowd. Continued success with the program and I'm sure you'll make it interesting for us all, just as you have done so far. Any closing remarks from you Hoyt, before we move to an open forum the last 15 minutes?
Hoyt Harper
Thank you for the opportunity. I love FlyerTalk! It's my daily gut check on how well we're doing! Thank you all for the questions and more importantly, thank you for the business!
Randy Petersen
BTW, one of my staff members won 25,000 United miles in your WIN THE WORLD promotion. And I got my coupons for entering. THat was really fun and it made me feel like a road warrior when in fact I personally could identify most if not all the properties you showed in the questions.
Hoyt Harper
p.s. don't forget to vote for us on the freddies!
Randy Petersen
Again, thanks Hoyt, you've been great and I've got to beleive that most of this group tonight will want to know in a week or so where they get their new credit card from.......Well, for the last few minutes, I'll take questions on just about anything from you. Who wants to go first, though no Starwood questions, Hoyt did those...QUESTIONS from any of you?
MileKing
Anything new on the AA suit?
Randy Petersen
Yes, it ends on Feb. 23rd. I'm currently being asked by the economist retained for members of the suit to help with the final challenge to what a mile is worth. My guess is that not much will change. I think I have drawn a pretty good arguement for you all, but this is big legal stuff now. At challenge is some $300 million plus of settlement in mileage discounts......again, we're only wrangling over the cost per mile, not the terms of the settlement. I'll make sure you see details as I hear them in early March and probably release them in MilesLink. NEXT QUESTION.
JayBrian
Randy, will there ever be a flyer talk event at the house of miles??
Randy Petersen
I think there is a strong interest in one. We are thinking of something in May here because it is the 20th birthday of frequent flyer programs and I think I can 'acquire' things from various programs to make it a MileStock. I'm a little short handed for planning such a thing right now and hope to make decision by end of March for a weekend event here. But, we are open 24 hours a day for any of you wanting to just fly by......NEXT QUESTION.
Moriarty
Have any other companies approached Flyertalk about following one company's excellent example by having their own representatives officially on the board? If so, can you name any?
Randy Petersen
As many others know, Hilton has a presense, and while Hyatt denied it in the USA Today article, I'm of the opinion that Hyatt does have someone who spends time on FT. I'm not sure where Marriott is on the issue and it doesn't seem like Prioirty Club is, though almost all the airlines are. As you know, it's a sweet/sour thing because unless done right, can be a problem and perceived wrong. Starwood seems to have found the right approach. NEXT QUESTION
chix
I hear that UA will not honor the $27 crazy fare to Paris. Looks like there will be plenty bad national press tomorrow on Today show. Don't you think UA is acting silly since less than 150 tix were purchased?
Randy Petersen
As you know, that story broke in the online edition of The Wall Street Journal based on Jane Costello's presense on that thread in FlyerTalk. While not mentioned in the print edition, I have it on good authority that FlyerTalk caused that to come to light. Less than 150 tickets. United has had some problems as of late honoring anything. Yes, mistakes do happen but their attitude that no one could believe it was a real price is unfounded. There have been several examples in the past where airlines have done promos at or near that price on purpose and isn't the internet about distirbution at the final product point? NEXT QUESTION
Stephen loves Starwood
Randy, your behind must hurt from sitting on that mountain peak (in the NWA ad). Anywayyyys!!! Question. One of the biggest fears any frequent-flyer or -stayer has is the demise of their program (especially with all these mergers). Accordingly, in your educated opinion, should people in general be cashing-in or is the competition going to keep the heat on for these frequent-point programs to continue for the near future (i.e. at least two to three years).
Randy Petersen
With no expiration dates, I'd give you this advice - never cash in a mile before its time. Now, we may find that the rules and space availabilty change, but these programs will always be around. I think I still have the first mile I ever earned from TWA back in 1982......God love the fact they are still good. As for my butt. Yes, it took them three hours of messing around for the light to get right for that shot....and it was 30 degress out. NEXT QUESTION
SXP
Have you heard anything on the AA/TWA/Jet Acquisitions thing besides what's in the news?
Randy Petersen
Just what's in the news. As for Jet Acquisitions.......it would be a cold day in FlyerTalk before they win that one out. If they do, I'm going to cash in every mile I have with TWA because I don't think they will keep the airline solvent and I'm not prepared for another Midway Airlines. Some of you might remember in 1991, Northwest was supposed to buy Midway and jerked at the last second and the next day, Midway folded and everyone lost all their awards. At least with American I know I'm pretty safe since Don Carty has stated they will honor my TWA miles.....NEXT QUESTION
hfly
Any further news on a DL/BA thing, or is everything out the window right now?
Randy Petersen
Everthing is out the window until early April when the governement states its interest in the United/US Airways deal. Although, D-Day is February 23rd since that's exactly 6 months prior to the announced pull out of US Airways from the American program. Might that be a day that Delta announces they are pulling out of the domestic relation with United? Something has to give.....NEXT QUESTION And I think we're done for the evening.....
kisses
Am I hearing right on this Northwest promotion? Just eat out five times and get 10K miles? I don't want to find out I was wrong down the line.
Randy Petersen
It does seem to be true. I know our staff has asked the direct question to Northwest and all others involved in that promo and they all state it is true, though nothing they want to promote. I'm 2/3 into that 10,000 miles because I've got to eat anyway. Try it early and continue to watch FlyerTalk for any updates contrary to that news. If true, this is the best (worst) think since Latin Pass million mile rule. Thanks for everyone's attendance tonight. I think Hoyt answered your questions and we learned a few new things......though we might want to all stay a little quiet on the credit card thing because it seems the deal isn't inked yet. And of course the PGA thing - very interesting. Great travels to you all and if you want to mosy on over to TheBuzz for some late night chat, help yourself. Again, thanks and see you online. Next month....Northwest and we'll really know the answer for the dining and 10,000 bonus miles.