Room with a New View
A handful of top hotel chains have remodeled their frequent-guest programs to accommodate more promotion-savvy travelers. The newest revamp came from Starwood Hotels & Resorts Worldwide with the February launch of Starwood Preferred Guest. White Plains, NY-based Starwood, a real estate company, bought Westin and Sheraton in early ’98 and has folded their loyalty programs into Preferred Guest.
In February, Starwood began a $50 million TV, print, direct-mail, and online campaign via Ogilvy & Mather, New York City, to introduce the program worldwide. Direct mail targets 1.5 million current Westin and Sheraton members (who are automatically enrolled in Preferred Guest at a level equal to their standing in the old programs), as well as the loyalty program members of 25 partners, mostly airlines. The company wants to build the biggest hotel loyalty program in the world.
Since April ’98, travelers have been able to swap points between Westin Premier and Sheraton Club International, but Preferred Guest promises bigger and better bennies. Starwood surveyed 2,500 frequent travelers in 12 cities worldwide and found they were “savvy about airline programs, [but] don’t really understand hotel programs,” said Starwood’s CEO-hotel group Juergen Bartels in a statement. About half of Starwood’s target audience doesn’t belong to a hotel program at all, and those who do find the programs confusing.
So Starwood opted for high-value, easy-to-earn rewards that could set a new standard for the hotel industry. Some highlights:
* The system is based on Starpoints, each worth one airline mile and good toward free hotel stays, flights, merchandise, vacation packages, and hotel dining.
* Fast accrual – three stays, or $1,000 in spending – and widespread redemption at Starwood’s 450 hotels and 100 resorts.
* Instant rewards, such as room upgrades, breakfast in bed, and in-room movies. Starwood uses the Internet to award points so they can be redeemed right away.
* Online redemption via preferredguest.com. Members can track their accounts, access special offers, and create a personalized Web page using their travel preferences.
* No blackout dates or point expiration for active members.
* Members can swap each Starpoint for a frequent-flyer mile with most airlines, and get 5,000 bonus miles when they convert 20,000 Starpoints into miles.
* Points are good for gift certificates from seven retailers including Saks Fifth Avenue, Lands’ End, Sharper Image, and AT&T.
With 1.5 million members, Preferred Guest has a ways to go to match the nine million total of Marriott Rewards, the biggest hotel program, or the six mill ion each for Bass Hotels and Hilton Honors (two million active).
