Scott Laird | September 28, 2016 1:30 PM ET
An Open Letter to Arne Sorenson
Dear Arne Sorenson:
Congratulations, you’ve merged two of the world’s largest hospitality organizations, and you linked their loyalty programs on the day the merger closed. That’s impressive.
I don’t envy the task you and your team has ahead of you. Starwood Preferred Guest, although smaller than Marriott Rewards, has loyalists who are no less dedicated in their devotion. I happen to be one of them, and the prospect of losing the SPG program entirely to one combined with Marriott Rewards has never quite settled well with me.
You see, as cliché as it sounds, SPG relies on a sense of identity and belonging. These brands are strong; that’s why they’re attractive. These members are loyal, because they’re well rewarded. Many of these properties are legendary; that’s why they’re indispensable.
Over the next several months, I imagine your team will be watching member activity very closely. Will SPG elite members take advantage of their matched status with Marriott? Will it be in markets where Marriott previously had no presence, or will SPG members continue to prefer Starwood-branded properties? Will there be a maelstrom of point transfers?
I hope your teams will takeaway from reviewing SPG many of the things that made that program great; I also hope that you will question whether the programs do, in fact, need combining. I myself would be happy if the integration of the two programs essentially ended right now. I like that Starwood awards status based on stays or nights, rather than just nights. I like that the introductory level of status is actually rewarding. I like that you don’t need a photographic memory to understand elite benefit differences across multiple brands. But I also like being able to transfer points to Marriott for redemption when there’s no Starwood property available.
READ MORE: Marriott, Starwood Set to Merge Following Antitrust Approval in China
The way the Marriott Rewards elite program is structured, it appears as though you’ve worked hard to win concessions for your members from owners across several divergent brands and operating models. As a travel writer who understands the hospitality business, I can imagine that’s no small feat.
As a guest and loyalty member, I absolutely do not care.
It’s not my problem that some property owners need convincing that loyalty is worth rewarding. Starwood built a great program by making sure it was actually rewarding in ways that made sense, rather than relying on a larger network of properties as earning opportunities to attract members.
The divided interest between property owners and loyalty program members is a fine line to dance upon, and I think SPG’s secret formula was that from a members’ perspective, it felt very much like a members’ program. Marriott Rewards feels like a hotel manager’s program; because of the high thresholds; because of all of the myriad exclusions and exceptions. They make Marriott’s program seem begrudging, and I hope that disappears if and when the programs are combined.
You’ve committed to actively listening while your company is in the process of sifting through the newly-available-to-you data on SPG. In the end, I hope your learnings from SPG drive real change, and that you continue the legacy of rewarding membership that has kept me #StarwoodProud, right along with the late Starwood’s associates, for 17 years.
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