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Friday, January 9, 2009

Are you a Scarlett Traveller? Why do you divide your loyalties?

  • Airline and Hotel programs are intended to engender brand loyalty in us, and thus attract our business for the rewards we will get in the future, and the perks we receive on our day-to-day travels. But it is quite obvious that almost all of us here at FT belong to several airline and hotel programs, so our loyalty may be somewhat in question.

    There are many factors in our initial choice of program(s), and ultimate partonizing of specific airlines and hotel properties. For those of us who do a lot of travelling each year on either business or leisure or both, maintaining elite status in more than one airline program becomes possible and practical, and actually may be a necessity given our patterns and the inability of a single carrier, or alliance, to get us everywhere we may have to go over the course of a year. Changing work patterns may also dictate a change in airline patronized for the same reason.

    As with hotel chains, though given mergers and consolidations, and intra-chain branding, the major five groups [Starwood, Hilton, Marriott, SixContinents, Hyatt... my NAmerican bias is showing, I know] now have more properties and more price points in more cities to tempt us.

    Still, one sometimes gets the impression of "whoring around" from one deal or promotion to the next. Loyalty is not primary in our consideration of who to fly, or where to stay. Or is it?

    So why do you have more than one Airline and Hotel program inwhich you actively participate and likely hold mid- or top-tier status? This is clearly evident by the notations to the left on many of our profiles. Do you feel a bit like a "cheap date" when deciding between a Westin or Hilton, basing it more on what you are likely to get out of it: room upgrade, free breakfast, double stay points, extra credits towards another 50K bonus...

    For me, being based in Canada, multiple memberships has been the result of limited domestic options resulting in maximizing my needs when I travel outside the country. I was a Cdn+ elite [but also held varying levels of status in AC's program], but CP folded into AC's Aeroplan, where I now hold top tier status. But I also fly oneworld carriers from time to time in certain parts of the world, so maintain a mid-tier status in AAdvantage. Similarly with hotels, until very recently, neither Marriott nor Hyatt had many properties in Canada [still really don't], so they were not an option. Westin/Sheraton, and to a lesser extent, Hilton, were slowly increasing their presence in this country, so membership in those programs -- plus a couple of then Canadian only ones -- provided elite status and benefits both for domestic travels, and particularly beyond our borders. Six Continents [in its past incarnations of Bass, Holiday Inn, I-C, etc.] was a fall back for small towns where Holiday Inns were among the few consistent options, though I had also been a two decade long member of the more exclusive upper end of the market Six Continents Club for my occasional stays at I-Cs.

    So does this make me a "****"? Sleeping around in so many different beds that I forget the name of the brand at reception when I wake in the morning!

    Are we all not Scarlett Travellers?


  • I don't feel like a "cheap date" when not staying at my most preferred program. However, the elite treatment at the 2 airlines (UA1KMM / AS MVPGold) and 2 hotel chains (Starwood Plat and HHGold) are enough that those airlines get almost every drop of my business and those hotel chains get 80%. I have orphaned bits of hotel points in other programs because if I'm going to stay in another property, well, I am going to sign up (because you never know if you will end up there again, or what the future brings, and really, if they are offering points it would be a "crime" not to join http://www.flyertalk.com/forum/smile.gif ).

    I suppose back to the topic at hand specifically, I divide my loyalties, albeit in a very limited manner, because the programs to which I belong all suit my needs in differing manners. And the status levels I have in the programs suit my needs just fine - eg, as an HH Gold I'm completely satisfied and couldn't care about being Diamond. But I do what it takes to keep the SPG Plat, because my SPG 'needs' are the Plat treatment.


  • I get involved with a FF program new to me when it offers an opportunity to earn free miles. That opporturnity rarely offers sufficient miles to get a ticket, but I join it anyway because I cannot predict what, if any, other opportunities for free miles will be offered for that airline.

    If over the years I had confined myself only to my favorite airline (American), I would have missed a lot of free flights on Delta, Continental, United, and Alaska.

    Most businesses that offer miles offer them with only one or a few airlines. Thus the need to be a member of more than one program. The one and only thing I think MCI does right is offer miles for most of the major airlines.

    ------------------
    The Personal Travel Experience of Gary Steiger - including how to get free frequent flyer miles on the web.
    http://home.earthlink.net/~pgary/TravelFrame.html


  • I have both Starwood and Hilton for two simple reasons:

    1) In certain cities only one of them is represented (for example, Sheraton in Rio de Janeiro, Hilton in Istanbul). Usually it’s Starwood that is not represented.

    2) Although I generally prefer Starwood, at some properties I know from past experience that I am going to have to engage in a verbal duel with a duty manager in order to actually get the privileges promised by SPG. I tend to prefer Hilton in such cases.


  • Originally posted by outoftown:
    I have stumbled upon what FewMiles is pointing out, there are diminishing returns once the highest elite level is achieved. I think it's true for both hotel and airlines programs. The only advantage to keep with the same program once the highest elite level is achieved is to reap the benefits of being an elite.


    Isn't that the whole point of becoming elite? I think many of us here (myself included), in our zeal for whatever the next level of elite status is, sometimes lose track of the fact that it's the benefits of attaining that status that we're really after, and not the badge itself.

    Especially considering that most airlines don't offer threshold bonuses any more, what's the point of attaining top-level elite status if you then switch your business to another carrier?

    The only benefit I see is the situation where you routinely fly enough to make top-tier status on more than one carrier. In this case, you'd already have top-tier status on both carriers from the previous program year, and you'd wisely want to spread your travel each year among both carriers so that you will re-qualify as a top-level elite.

    But if that's not the case, I think it makes more sense to stick to your primary carrier once you're top dog, as this is the only way you'll actually get all the benefits you've earned.


  • Shareholder, you are brilliant!

    To answer your question. Sometimes these things just happen. I did a lot of flying to and from Europe and through no fault of my own got booked on BA. Therefore I have a lump of BA miles. I also have a ton of Delta miles for the same reason.

    My home airline is American. I fly that airline whenever possible.

    The same is true for hotels. Sometimes the bookings are out of my control. So there I am with another few miles/points. Whatever!

    My mother used to collect Green Stamps. She trained me to collect! Now it's miles!

    Thanks Mom!


  • Airline and Hotel programs are intended to engender brand loyalty in usWell, that's becoming more and more debatable with each passing day. But that's probably a debate for another day in another forum. Probably on another BB.

    But back to the original question, and a simple 3 word answer: enlightened self interest.

    To steal a line from a movie, my travel life is "dedicated to sucking the marrow out of the enemy." Well, "enemy" in the case of airlines. Less so with hotels and car rentals. But when Starwood decides to charge $2 for toll free calls and National decides to implement "surcharges" unannounced, then they too walk that fine line between friend and enemy.

    So every travel decision is the end result of the evaluation of a multitude of factors, that I instintively understand but would be hard pressed to reduce to an algorithm that anyone could follow. Those factors include, but are not limited to, availability, convenience, cost, current promotions, rewards, long term consequences or benefits, comfort, phase of the moon, what Bart Simpson last wrote on the chalk board, and advice from my dog and his tarot cards.

    10K UA miles for 3 Radisson stays in 3 months? Well, I have a a couple of 1 night stays in towns that don't have either a Hilton or Starwood property, so reduces the final decision to giving up 1 night somewhere else. So which is more important, an upgrade + 500 web booking points + 500 amenity points + 400 regular points, on 10K UA miles? Easily decided, particularly if you've already crossed the top tier threshold in your preferred program.

    2$ phone charges? Well, if you can demonstrate to a hotel manager that at least in your case, the potential to earn $30 from 15 phone calls not only evaporated but so did $450 in room revenue, especially when the hotel was not full and the marginal cost of putting someone in a room is less than the phone revenue they were hoping for, then perhaps the long term benefits of spending one stay in a Hilton instead of a Starwood might be easily decided. And if Hilton is offering bonuses, so much the better.

    Bailed on one FF program, and fed up with your current car rental arrangements? Switch from National to Avis, and collect BA points instead. Avis too expensive, or not available? Fall back on National, or Hertz, or Budget, or whoever? Think you might only get back to the airport at the last minute? Well, Budget always seems to take longer than the others to return a car, so they're out.

    Tired of being gored by airline fare rules and restrictions? Head to FT and figure out how to flip those rules over and take advantage of the airline instead of vice versa. And so it goes.

    Fact is, there ain't no such thing as loyalty. There's only an ethereal concept of "best" that only exists right here, right now. With the passing of a fluttering butterfly wing, that "best" will be gone, and a new "best" will appear.

    And just as quickly, your loyalty will change.


  • One of the reasons I switch around airline programs is b/c CO (plat) has made it so d*mn hard to redeem awards.

    When possible, I'll credit flights to other airlines (such as a recent Air France flight that I sent the miles to Delta just before the CO alliance ended) so that I've got enough miles spread out among airlines when CO says that no award seats are available to my destination. With random other airlines outside of my big 2 (CO and US Air, Chairman's) I can usually add Amex points to get an award for my wife and I.

    I'm more loyal to *wood on the hotel side b/c of the many benefits of the Plat concierges outside of the points redeemed for free nights. I will basically travel further or adjust my plans because of the great experiences I've had with *wood.


  • Originally posted by Shareholder:

    Loyalty is not primary in our consideration of who to fly, or where to stay. Or is it?

    To be honest, when not traveling on business--I do tend to plan my 'long weekend' vacations in Europe/Asia based on the location and desirability of either a Starwood (Platinum) or Hyatt (Diamond) locale. Coupled with where CO (Platinum) flys + the availability of upgradeable fares (and most importantly the chance on those flights of getting the upgrade). A recent decision to go to Berlin had more to do with the comments on the Grand Hyatt, similarly my recent stays in Vienna were due to the Starwood properties (2) there --- as well as a chance to use a free night, or get a discounted rate plus the almost certainty of getting upgraded accomodations.
    I can be very flexible with my travel plans and can easily develop a keen interest in many cities, but what (for me) starts the process is the #1 the hotel, #2 upgrade seats available on CO/KL and lastly the destination.
    As far as dividing my loyalities, it is from necessity. When traveling in the US on business, I tend to stay at either Starwood or Hyatt-- or whichever is closer to my office in that city. With airlines, I use CO & US. CO because living in NJ, it has the best choice of destinations and US, due to my companies HQ in CLT and my frequent trips down there.
    On occasion I'll stay at a Hilton (Gold), but I've come to like the extra treatment afforded me at Hyatt & Starwood being in their top tier.


  • Hey I resemble that remark! As one who earned several different hotel program elite levels while on my back, I guess it equates to w***ing around. http://www.flyertalk.com/forum/smile.gif I have stumbled upon what FewMiles is pointing out, there are diminishing returns once the highest elite level is achieved. I think it's true for both hotel and airlines programs. The only advantage to keep with the same program once the highest elite level is achieved is to reap the benefits of being an elite. For me, this will consist of more LUser fares on DL, therefore there is zero benefit to me to fly more than 100 segments. It penalizes my chances for elite levels with other programs. The same is true of hotels. My last night last year in Priority Club was #50 at the IC in Rio de Janerio, which did not register until after I received a less than expected Gold package from Priority Club. When I can choose, I sleep around in Hilton's program, because I do like and consistently use the HHonors benefits.
    One thing no one has pointed out yet is that those of us at non-hub airports like RDU can are not limited to using a dominant carrier, which allows multiple loyalties. I usually can choose from at least 5 carriers for most of my flights to larger cities. With America West starting service last week, I now have even more choices. The downside of being loyal to multiple programs is that I have had to do some mileage runs on two airlines the past two years to retain my status.

    Edited to keep from looking much less eloquent than the previous posters.


    [This message has been edited by outoftown (edited 06-09-2002).]


  • I would have to agree with Steve M. that once you have two or more programs that you have qualified with you would want to kee the status on both. It sure pays to have a back-up plan when your favorite carrier can't get you where you want to go.

    I currently have elite status on two airlines and plan to keep both. You never know when you have to fly where one aireline or the other doesn't.

    Besides if there is no "extra" to keep me flying with them why.

    If that makes me a "cheap whore" so be it...


  • The companies offering frequent flyer/renter/traveller programs are hoping that they can buy your loyalty with their program. However, I never signed any kind of loyalty oath when I signed up. I look upon the various promotions the same way I look at supermarket sales--I'll buy wherever the best deal is. Now, a series of escalating rewards may help make the decision easier...

    As for myself, I have several accounts because no one airline/hotel chain serves all my needs, even for leisure travel. I have my favorites that I'll try first but if they aren't available or are priced out of line, I'll go for my second or third choice and happily accept points on their programs with a clean conscience. :-)

    GNW


  • Interesting topic, Shareholder.

    As a not-very-frequent flyer, especially compared to many who frequent FT, I try my best to concentrate my "loyalty" on my program of choice. As my handle suggests, I don't have as many miles as many others here have, so I am saving them up for international J/F travel, something I doubt I (or my company) will ever purchase with $$$. For me, this is the "big reward" from loyalty programs.

    I know, in contrast, there are many FTers who fly so much that they could conceivably achieve elite status with more than one airline/hotel chain/etc. For these people, they have a choice between concentrating all their "loyalty" with the one airline/hotel or dividing their loyalty because they can achieve status in more than one program. Here, a common factor seem to be that benefits do not keep increasing beyond a certain point. This is primarily manifested as a limited number of elite tiers in a program. For someone who flies 200k/yr, for instance, it is usually better to split their loyalty and get both EXP on AA and 1K on UA. This way you get systemwide upgrades for both AA and UA. If you flew all 200k on either one of the two airlines, you don't get any more systemwides for being loyal. Thus it is simply economics which would dictate such a decision. One further benefit of splitting ones loyalty is that one has increased "coverage" of being elite in more than one program, and perhaps more importantly nowadays, elite status in more than one alliance.

    One flaw in many loyalty programs is that the benefits do not increase linearly with loyalty. Just above each elite tier's qualifying threshold, the marginal gain in benefits for loyalty invested is at a minimum. And once one achieves the highest tier, there are (often in many loyalty programs) no further benefits to be gained, thus resulting in the classic conundrum of diminishing returns. This is sounding more and more like economics.

    One tactic companies could take advantage of (and in my opinion, not enough do) is to implement more threshold bonuses beyond the simple elite tiers. For instance, a 75k/yr flyer is given no more than one who flies only 50k/yr. Why not then offer up another 10k bonus miles at 65k and a systemwide upgrade at 80k? Likewise, the top tier elites should be given an opportunity to earn more international upgrades, so how about another one earned for each 25k beyond 100k? It makes sense to me, as those who fly more than 100k will have use for more upgrades. I think a gradation of benefits in this fashion would help programs be more competitive and attractive. It remains to be seen if the airlines and hotel chains will find this kind of idea to make economic sense, i.e. is it worth it to offer these extra benefits to their customers? Or perhaps the people running the loyalty programs have already hit the regime of diminishing returns.

    FewMiles..

    ------------------
    .................[ FlyerTalkers' Resources on the Web (http://www.fewmiles.net)]
    [ Unofficial Guide to AAdvantage (http://www.fewmiles.net/AA)] [ Unofficial oneworld Info Desk (http://www.fewmiles.net/oneworld)]


  • There are numerous reasons why I divide loyalties for both business and pleasure. With hotels, it's largely because no one chain has properties in every location. Even if they do, convenience and cost come into play. In some business situations I may be required to use certain hotels or hotels under a certain dollar amount.

    Hilton and Marriott have far more properties then Starwood, although Starwood is my first choice. If no Starwood property is available or the property is more costly, I will look to Hilton and then Marriott. If Starwood had the spread of properties that Hilton and Marriott have, I would likely be giving them close to 100% of my business.

    With the airlines, I primarily stick with UA, AA, and US. Here, once again, a single airline does not cover all destinations nor do they all offer convenient schedules to where I need to go and when I need to go. US gets most of my business up and down the east coast because of cost and convenience. UA gets my long haul business, although I will probably move to AA next year since I will no longer be 1K and my experience is that it is easier to upgrade on AA if I'm not at the top tier level.

    Finally, special deals come along on other airlines every so often that I would be foolish not to take advantage of them even if they are not on a carrier I fly. For example, I will soon have close to 40K NW miles even though I have NEVER set foot on a NW plane.


  • If my first choice airline could get me everywhere I need to go at reasonable fares at w/o going thru ATL or CVG to get to ORD or NYC I would have every mile on Delta. Same with hotels - I spend enough time in Hiltons (some places it's the only reasonable choice) to make it worth my while to maintain my Gold status there even though I would prefer to spend the night at a *wood location.


  • My loyalty to airline and hotel programs is sometimes 'tested' by cities served, flight schedules, and other outside forces.

    My first and foremost airline is Northwest. While I see the service and amenities go down the drain on others (AA and DL, are you listening?), NW has shown through their actions by staff that they truly value your business. So, I always use NW as the benchmark when comparing fares. Yes, I will go to another carrier ONLY WHEN the price is significantly different. I also don't mind connections. Since I am elite and my upgrade success rate is just about 99 percent, riding up front makes it do-able. For instance, I have made two trips from Omaha to Norfolk, VA recently. The normal routing is OMA-MSP-DTW-ORF. I take the 'extra' connection in stride, knowing that I'm getting a few more miles and still being treated well.

    Hilton is my lodging provider of choice. When they bought Promus a couple of years ago this really added to the list of locations you could stay and receive the double-dip. However, it has become routine that Hampton Inn's are overpriced, never being able to compete with comparable Holiday Inn Express'. Recently I was driving through Asheville, NC and called central reservations. The best I could get, at first stab, was a federal government rate of $72 at the Hampton Inn (right next to a nice HI Express that I know has a gov. rate of $49 from another recent stay). When I pressed a little about why the best I could do in this location on a weeknight (it's a tourist/weekend destination) I was finally able to 'convince' the agent to look again. She found the Doubletree Suites, right outside the gates to the Biltmore, for $55. So I took it. But my displeasure with the Hampton pricing model is also coupled with the fact that you only get 100 miles per stay with your airline partners. What a joke. But my loyalty as an HHonors Diamond speaks for itself.

    One other consideration I use is bonus offers with partners. Double or triple mile promotions with hotel or car rental partners may be a swing vote as to where I take my business. I take advantage of good point deals with Starwood and have preferred or gold with Hertz and Avis, but since I always take miles, and since they both really are mediocre with customer service, I go with the best price. I also have some 'orphans' from those rare occasions when I stay with someone else and take the points because the miles are poor (such as Marriott).

    So, how true blue do you have to be in order to deflect criticism of being a mile whore?







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