Q and A: Marriott CEO alludes that there are no plans to devalue points or member benefits after SPG acquisition
This November, Marriott announced it would be acquiring Starwood to create the world's largest hotel company. To put that in numbers, picture 1.1 million rooms, 5,500 hotels across 100+ countries and 30 different brands in their portfolio. While in terms of choice this sounds good; but does bigger mean better? We caught up with Arne Sorenson, President and Chief Executive Officer of Marriott International, to learn more.
RWV: What changes can travelers expect at some of Marriott's brands, particularly the ones that were formerly Starwood properties?
AS: This combination does fill in several gaps in both portfolios. Broadly speaking, Marriott International has a strong presence in the select service segments and convention/resort hotels, as well as in the luxury segment with Ritz-Carlton and JW Marriott. Marriott also has a strong development organization with owner/franchise loyalty. Starwood, on the other hand, has a strong international presence and longer track record in the lifestyle space, so together we are very complementary.
Our integration plan will evolve as we approach closing the transaction, but at this point we anticipate little change in Starwood’s brand line-up.
RWV: For travelers who use Starwood-branded credit cards and take part in their loyalty program, what changes can they expect?
AS: We will be undertaking a thorough review of all partners and contracts to determine what is in the best interest of our members and hotels consistent with our agreements with those partners.
Regarding loyalty, having announced the merger just a number of weeks ago, we’re not at the point where we are able to dive into details. What we can say is that this merger gives us the ability to take two great companies and learn from the very best of each of them. This will be particularly true for our loyalty programs.
We recognize that Marriott Rewards and Starwood Preferred Guest (SPG) are two of the finest loyalty programs in the industry, each with devoted followings. While we will be spending a great deal of time in the coming months developing our strategy for SPG and Marriott Rewards, our members should take comfort in the fact that we know without a doubt these loyalty programs are the most powerful tools we have for developing strong relationships with our guests. The SPG program was one of the most attractive aspects of our acquisition of Starwood. To state the obvious, devaluing points or member benefits is not the way to preserve and strengthen these programs, which is our aim.
As the merger of the two companies progresses, we will share more information and identify ways for travel thought leaders and members to provide input. The insights we gather will be instrumental in helping us define what our loyalty program looks like in the future.
RWV: What can travelers expect for the future of Marriott now that you've acquired Starwood?
AS: Until closing, we are operating as two separate companies, so it is business as usual. ... While our thinking is quickly evolving, we expect Starwood brands to remain in place. We have demonstrated our ability to rapidly grow the Marriott hotel system, and we believe we can meaningfully accelerate growth in many of Starwood’s brands, particularly in the upscale segment.
Jessica Festa is the founder on the solo and offbeat travel blog, Jessie on a Journey, and the online responsible tourism and culture magazine, Epicure & Culture. She's constantly searching for local experiences beyond the guidebook. You can follow her travels on Facebook, Twitter and Instagram.