Loyalty Program Update: Delivering Value
Loyalty is an essential component of Marriott’s integration with Starwood and the long-term success of hotels. Since the day we merged, we have been running loyalty programs – Marriott Rewards, which includes The Ritz-Carlton Rewards, and Starwood Preferred Guest (SPG) – in parallel, and allowing members to link their accounts, match status, transfer points and redeem them for a stay across the portfolio. Our ultimate goal is to introduce a single combined loyalty program which provides all of the brand and location choices that customers could desire. As we plan for the future, we wanted to share our commitment to loyalty and how we are encouraging hotels to continue delivering an exceptional loyalty experience in order to drive value.
There is significant work underway to bring Marriott Rewards and SPG more closely together, and ultimately integrate the programs. While we do not yet have an exact date for a combined program, we plan to have a behind-the-scenes loyalty technology platform by late 2018. In the meantime, we are continuing to see the value of loyalty, enhance our programs and prepare for the future of loyalty.
Marriott Rewards is recognized as one of the best programs in the industry, and we’re thrilled with the addition of SPG, a beloved loyalty program with a passionate Elite member base. Combined, we have more than 100 million members, making us one of the largest loyalty programs in the travel industry. We learned that only 11 percent of Marriott Rewards and SPG members were members of both programs prior to the merger, and with that limited overlap we believe there is considerable upside.
Our loyalty members pay more, stay more, and cost less to retain: they account for over half of paid nights a year, globally, pay an ADR premium over non-members, and drive more revenue to hotels. We have seen a spike in net enrollments since the acquisition, with roughly one million new members joining each month.
We have many opportunities to grow on our journey toward a combined loyalty program. We are driving value for loyalty members by aligning the best of the programs. For example:
- A year ago we launched benefits for Marriott Rewards Elite members, including suite upgrades and late check-out, to align with SPG’s Elite benefits.
- We also introduced Marriott Rewards Ambassador Service to align with SPG Ambassador, a personalized concierge service for members who stay more than 100 nights a year.
- We will launch mobile check-in and check-out to most former Starwood-branded hotels using the SPG app, to align with Marriott Mobile. To learn more about the launch and associated details, including timing, click here.
To continue to reinforce the importance of loyalty, we highlighted plans for the future at the GM Meetings held in all continents earlier this year. We are encouraging owners and franchisees to anticipate ways to serve these valuable customers so that they feel special and return for more stays. We are emphasizing the importance of loyalty in materials provided to hotels, including a video featuring Marriott leaders and a Loyalty Guide for GMs to ensure the loyalty strategy and benefits implementation is seamless on property.
Thank you for continuing a dialogue around these themes that ensure we drive loyalty at your hotels. We appreciate your partnership as we continue to focus on ways to drive revenue and cost synergies while serving these valuable customers.
