Marriott: The impact of the new program on Starwood members

On August 18, 2018, Marriott’s loyalty programs, Marriott Rewards and Starwood’s, Starwood Preferred Guest will merge, resulting in the largest new hotel loyalty program in the world. This merger, which has been delayed many times and whose delivery has been complex, both in terms of rules and information technology, will multiply the possibilities of earning and using points for its members.

Here are the keys to deciphering the changes.

A harmonization of the statuses

Due to the number of members in the new program, it was necessary to add statuses to the new loyalty program, a big difference from the current SPG program.

Clear and very well thought out statuses

Note that the only way to qualify is by nights.

  • The entry level status, for those who stay a maximum of 9 nights per year, guarantees free internet access, member rates and the possibility of mobile check-in and check-out,
  • The silver status, for those who stay between 10 and 24 nights per year maximum, and which, in addition to the above benefits, offers the total guarantee of the reservation(important compensation in case of overbooking, and obligation for the hotel to relocate you), 10% bonus points, priority on late check-out (not free) and a dedicated assistance and reservation line. In short, not much…
  • The gold status, for those staying between 25 and 49 nights per year maximum, and which, in addition to the above benefits, offers 25% bonus points, the late check-out until 2pm free of charge upon availability, a welcome gift in the form of points, and an upgrade to the best available room,
  • The platinum status, for those staying between 50 and 74 nights per year maximum, and which, in addition to the above benefits, offers 50% bonus points, the late check-out until 4pm free of charge and guaranteed, a welcome gift in the form of either points, an amenity or breakfast, a upgrade upon availability including suites, the guaranteed access to the club lounge in hotels that have one, the bed type guarantee, and the choice of an additional annual benefit (including 5 Suite Night Awards to guarantee an upgrade to the best suites in certain hotels),
  • The Platinum Premier status, for those staying more than 75 nights a year, and which, in addition to the above benefits, offers 75% bonus points, a second batch of 5 Suite Night Awards, and the guarantee to stay in the hotel of your choice even if it is full for any reservation made 48 hours before,
  • The Platinum Ambassador status , for those staying more than 100 nights a year and spend more than $20,000 and, in addition to the above benefits, offers a personalized concierge service with a single point of contact, as well as Your24 (guarantee of a check-out time similar to the check-in time).

Six levels of status, but easily understandable with a very logical gradation. Even if there are always dissatisfied people, winners and losers, it must be said that the program is well designed.

More Lifetime statuses than before

As for Lifetime statuses, there are three official and one “unofficial”:

  • Lifetime Silver status, achieved after 250 nights and 5 years Silver, Gold or Platinum,
  • Lifetime Gold status, achieved after 400 nights and 7 Gold or Platinum years,
  • Lifetime Platinum status, achieved after 600 nights and 10 Platinum years,
  • Lifetime Platinum Premier status, which will not be awarded after January 1, 2019, but may be awarded previously to current members who reach 10 years of Platinum and 750 nights before January 1, 2019.

Note that Starwood only had two Lifetime statuses, Gold and Platinum.

What are the regressions for SPG members?

Already the lack of qualification by stay will prevent some SPG members to reach the higher statuses. Per-stay qualification did not exist at Marriott Rewards.

It is in the highest statuses that the regressions are felt.

  • The number of Platinum members will skyrocket (it already did since the status match between Starwood and Marriott exists), especially since Marriott Rewards Gold members will be awarded Platinum status in the new program.
  • Members reaching 50 nights per year will lose 5 of their 10 Suite Night Awards, as well as 25% bonus points.
  • Members reaching 75 nights per year will lose the Your24 benefit now reserved for those reaching 100 nights.
  • Members reaching 100 nights per year will now have to spend $20,000 on their various stays, a sum not necessarily reached when the stays are long and the rates negotiated.

Une conversion des statuts plutôt fair

Here are the tables provided by Marriott International regarding the 2018 annual statuses:

A fairly fair conversion, which corresponds to the qualification levels per night since, I remind you, the qualification per stay no longer exists in the new rules.

As for the Lifetime statuses, here is the table:

Again, pretty fair. Initially, Marriott did not provide a gateway to Lifetime Platinum Premier status, which is only available to Marriott Lifetime Platinum members. It has been revised, and a Thresold was created in June for SPG members.

More generous point gains than current balance conversion

The conversion ratio has been set at 3 new points for each current Starpoint.

However, currently, the gain is 2 Starpoints per dollar spent (i.e., 6 converted points), compared to 10 points per dollar spent in the new program.

This increase is offset by the general decline in status bonuses, which fall by about 25%.

Element regulars will lose much more, as they will only earn 5points per dollar spent, just like at ResidenceInn and TownePlace Suites, Marriott’s long stay chains.

On the other hand, no news about the SPG Cravings program… It was very useful as it allowed us to dine at Starwood hotel restaurants and credit the points to our account. The Marriott website only mentions meals taken during stays… A big regression if this is confirmed.

Status quo in the use of points

Not much to say, except that it will also be easy to use your points, and that no major devaluation is planned. In full transparency,Marriott has set up a site to compare the number of points needed for each hotel between the old and new systems. It is possible, until December 31, 2018, to order nights using the old scale.

In addition, each hotel has been placed in a category, and the number of points required is fixed in each category:

Starting in 2019, a high and low season will be implemented and will fluctuate prices, as it is already the case at Starwood.

Bottom line

Wait and see. The changes announced are not particularly scary, and allow us to look forward to the future as a member of these loyalty programs. Let’s see how things will evolve in the near future, especially with the inflation of Platinum members, or with the recognition of statuses “higher” than Platinum.

Olivier Delestre-Levai
Olivier Delestre-Levai
Olivier has been into airline blogging since 2010. First a major contributor to the FlyerTalk forum, he created the FlyerPlan website in July 2012, and writes articles with a major echo among airline specialists. He now co-runs the TravelGuys blog with Bertrand, focusing on travel experience and loyalty programs.
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