Forgive me if this has been covered...this is my first post and I am new here...I work hard to accumulate points and to have them devalued when Marriott changes how many are needed for a stay seems like bad business. Shouldn't they give us points when the points are devalued so we still maintain the same "buying power"? When a stock splits...your shares double...why not something similar with points?
Although I hear you about devaluating points, wouldn't it be great if one hotel chain would do this?
Don't you think the people like us would flock to that hotel chain? I know I would, I already spread the wealth on my stays but concentrate on Marriott most of the time. If Starwood, Hilton, Priority or any other (almost any) hotel chain would do this I would stay as much as I can.
Have a nice day.
Pingreeman is 'dead on' with his post about new FASB rules taking over. The 'devaluation' of our points is going to continue. Why? Because they are a liability on their books that decreases their asset value. The points are also a drain to future revenue because the points replace the dollars that would be spent on the rooms. More outstanding points means less revenue attainable.
Look at the Marriott timeshare group: They changed their 'point' system to one that now has points expiring in a two (yes, 2) year timeframe. Result: A two year hit on value and never an increase in point value to declare. Simpler to deal with from a corporate perspective and less work for Marriott to deal with all the 'banked' points. The best part, from the corporate perspective, is that lots of points will expire while never being used.
My guess would be that the change by the timeshare group to a timeframe expiration of points is a test for the future of the Marriott Rewards program. Marriott had nothing to lose. They did it as part of a timeshare spinoff.
Now, if they can pull it off without a lot of disgruntled folks who 'lose' their points because they couldn't use them (and there are some so far who have lost them, they've posted their concerns here)...my guess is we'll be seeing a similar happening with the Rewards Points program.
Just my thoughts.........
I wonder if most companies are regretting getting into the loyalty business?
As my earlier post on new FASB rules suggests, the liability continues to grow for points, claimed or not. I guess that if one chain were to discontinue the programs, the others would gladly follow suit.
Ironically, membership in these loyalty programs is free to the member, and that could change as companies need to enhance the revenue stream. Let's hope they are not considering that change!
SS - You raise a good point of loyalty programs regretting having started them, but I doubt any programs will be terminated. These are HUGE revenue streams with excellent margins for the programs.
Take the VISA card program - Visa buys the points from MR as an incentive to the consumer to use their cards. I'm taking a stab at a number, but assume they pay a penny a point; 135K points to get a $1k cheque? That's $350 "profit" to the MR program.
I have been a member for 7 years and have never experinced such a thing. I have been very happy with the program, and I have noticed that some hotels require different points for a stay, which is no different than a different price. But, I have never seen anything that I would call a devaluing.
one of the issues which I had in recent month in points devaluation is that very often (more and more recently) points are not correctly credited. While I was not taking this into account that much it became apparent in the last 2 month, so since June 1st I had 7 stays, 5 of them were NOT correctly credited. This goes for base points as well as Elite nights (which are missing counting towards current promotions)
I've been a loyal Marriott guy for 9 years and along with Costco, always admired their respect for the customer. There's an old saying that you can always build a cheaper pizza and still call it a pizza, even if people no longer will buy it. Marriott has somehow resisted the temptation to always build a cheaper pizza until recently, which is something I could always brag about out to my Starwood friends. At the end of the day, Marriott really respected their customers.
Then about a month ago, I was staying at a Courtyard in Beverly Hills and noticed they had removed the free coffee that had always been a staple of the courtyard experience just as surely as the $1.50 hotdog is a hallmark of Costco. I spoke with the front desk about this and apparently this was a new policy that was being rolled out from January. I guess it's an effort to force customers to buy coffee at the Bistro. As small as that seems, I could see the writing on the wall that day. Now we have this major point devaluation which appears to be part of the trend towards building that cheaper pizza. Saving money by shorting the customer is addictive and once it begins never stops. It eventually leads to the disaster at Dell who made a decision to "save money" on their customer service department, or United "saving money" by devaluing their point system.
It usually takes 3-4 years for a company to experience the full negative impact of these decisions once the begin. Then as their growth grinds to a hault and they begin loosing market share, they start asking "what can we do to change this." Some new CEO admits they made a huge mistake, but the brand is too damages to fix buy that point. As Sheraton has proved, there is no reversing that trend once you have abandoned your loyal customers. You can never regain their trust because they have moved on and no one stepped in to replace them. You are then permanently committed to running a mediocre business all about cutting corners where your only pride becomes not being dead last in your category. You can almost hear the sigh of relief the execs. at United breath every year they are not dead last in customer satisfaction.
The worst part is that my post along with the others on this board are purely for our own edification. Management will pay no attention. It they were still capable of hearing their customers, they would never have arrived at this point.
For me personally, the worst part will be having to listen to all my co-workers tell me "we told you so" now that I will be switching over to Starwood. Trust me, we are only at the beginning of this downward spiral and I don't plan to stick around to watch the other reasons I loved Marriott stripped away one by one in order to support the bottom line at all costs (you know, we could save a fortune if we stopped serving meat on the concierge lounge. What if we did away with teh honor bar and doubled the price of the alcohol. You know, those mints we place of the pillows are costing us a fortune). No thanks.
Oh well, I guess I still have Costco and now Starwood.
travelguy - after 20 years in Marriott Rewards and over 3000+ paid nights, I have decided to switch ALL my future hotel stays to Hilton. Why? Because the CYs stopped offering coffee in their lounges. I hope the bean counters (pardon the pun) at corporate headquarters are happy about saving $5-$10 on coffee to lose my 243 paid nights last year. -PGM