Last week I wrote about how United’s status match system was being scammed. MileagePlus stopped verifying that credentials were real. They stopped verifying that the people getting the status were real.
Of course, United isn’t alone in facing fraud. Hyatt is seeing a lot of fraud issues now that they’ve made all of their awards transferable for free. There’s even a Facebook group for it.
The optimal amount of fraud isn’t zero. The things you’d have to do to eliminate all fraud would make the programs unusable. But some of the pathways for fraud are just super obvious.
A lot of fraud comes out of China. There are an inordinate number of MileagePlus Gold members in China now. I understand there are hotels in China that help Hyatt members manufacture stays, status, and transferable benefits.
And nearly anyone who wants Marriott Platinum status can have it, thanks to Marriott’s partnership with Fliggy – which is Alibaba’s online booking platform, akin to Trip.com.
- Fliggy offers a 120-day Marriott Platinum status challenge. They provide temporary status, and members can stay 8 nights within that timeframe to keep it through the end of the next member year. The challenge is free.
- Initially it was only open to Fliggy “F4” top tier members. However in mid-April, Fliggy revamped their tier structure moving to 6 tiers instead of 4. And as a correspondent writes,
The threshold for the original F4 level was halved, aligning it with what was previously F3, yet Marriott didn’t adjust its requirements accordingly. Now, F4, F5, and F6 members can all obtain a Platinum Card and participate in the 8-night challenge, significantly lowering the bar.
And it’s possible to “artificially inflate…Fliggy membership level through fake transactions, without any actual cost.”
Fliggy operates similarly to eBay, relying on merchants to sell travel products. These merchants need high ratings and sales to gain consumer trust and better visibility, which has fueled a large gray market for fake transactions.
People working in this gray market sell high-level Fliggy accounts after boosting them through fake transactions, profiting from both sides. Fliggy accounts are tied to Alibaba’s ecosystem, covering about 70% of China’s population. Therefore, nearly anyone in China who wants a Marriott Platinum Card can easily purchase one for as little as $10 to $20.
Not only are people generating unearned status for club lounge access (and lounges are far nicer in Asia) and other benefits, but Bonvoy elites no longer have an incentive to stay to requalifying for status since they can just buy it cheap. They can even merge the new account they create for this with their existing one.
Executive Lounge, JW Marriott Shanghai at Tomorrow Square, Credit: Marriott
Marriott sees they’re getting plenty of new signups through Fliggy, when they’re getting plenty of short-term elites – and the same members opening new accounts over and over, it seems.
There are reports that as many as 75% of guests checking into a Marriott hotel in China now have Platinum status. That’s certainly the upper end, and perhaps it doesn’t climb that high often, but it results from the ease with which the status is generated there.
I spent 1000 nights for my LT status and these folks get it for 20 bucks #!!
Seems fair to me 😉
Gary — Marriott status isn’t worth $20.
I mean tbf you can buy Marriott status with the Brilliant card too Gary.
Depending on your spend pattern and how you value the free night, the cost of Platinum could be < $100.
Gene — Marriott status is worth vastly above $20 as long as that gives you and your companion access to a lounge where a full breakfast buffet and a full dinner buffet (possibly with free alcohol) is served.
Overall, the concept of “loyalty” is laughable — maybe in older generations it actually mattered — but the current generation of traveler cares about getting the most value. Gaming the programs is nothing new. What’s new is a lot more people interested in travel and interested in gaming the programs.
There is no solution other than shutting down loyalty programs and perks entirely. I can see a world as little as 3-5 years in the future where miles and points cease to hold meaning beyond being redeemable at fixed valuations. You pay for what you want, period.
I love that hotel, the food wasnt great even in the lounge but it has the highest library in the world. Theres a door that opens up..
I’ve stayed at that JWM. They have the ‘world’s highest library’, with a hidden door to a balcony.
Seems like Bonboy could shut this Fliggy crap down in a hurry. So why aren’t they? Platinum status is worth a lot overseas in my experience.
This is Just another Gary hate China article, how about I give you $10 you buy one for me Gary? I bet you can’t even ask your Chinese friends, the black market exists but not this low
I doubt it. 75%? Oh the travesty!
The people hating on the article are on their 4th Fliggy account 🙂
I do not get how this is fraud? Marriot knows this and they still allow it to happen, so where is the fraud? It definitely inflates the Platinum status 🙁 Other than that, its just another idea for short term status. I find this type of article to be another media tool to increase hate on China. There are like methods in the US, and WE HERE in the domestic market definitely inflated Platinum. I don’t see the point of this story.
Perhaps it’s time to exit the China market.
Marriott has been offering status challenges for about 15 years. They are mentioned on other forums all the time. The number of nights changes a bit, but the only difference with this Fliggy offer and the general plat challenge is the number of nights at 8 instead of 16. This is nothing new. Basically, gaming the system with $20 might cut the nights needed in half, if you jump through the right hoops.
Also, your figure of 75% plat members in China is based on a random Flyertalk post from 2021, after Marriott extended everyone’s status due to COVID. So yeah, there were a lot more than usual.
Marriott elite status is just a marketing tool, the on property benefits are minimal. Its still a win overall for Marriott.
I studies abroad at both Peking and Fudan university ties and lived with home stay families in high school and I often think every major brand needs to pull out of that market. I love the Chinese people, but man is it a terrible business environment. I’ll certainly never work in Shanghai again.
With platinum you get lounge access in some hotel may be worth $10, some hotel give you $10 coupon only cost hotel $1 0r $2 and force guest to come to the bar to spend more, some hotels give you free bfst worth $10 or less in cost if not free i will always eat outside . If they an get someone to stay in their otherwise empty room for anywhere between $120 to $500 a night looking for these small perks it is win win situation for Marriott. I work and manage independent hotels and we give out free coupons and many things to bring customers to the door.
As everyone else said small amount of fraud and gaming happens but end of the day marriot still make money by getting more guest
As a Chinese, I would say the Fliggy thing is really horrible, which also makes the lounge/breakfast service very opposite to being delightful. And get prepared with getting no upgrade at all if u aren’t holding Titanium and above, due to the population we have. Fairness is just like a joke. In contrast, InterContinental lounge, despite/because of higher requirement to access, can provide a quiet, pleasant atmosphere and also a bit better food.
Gary next time Mark Weinstein offers you a Gold membership ask him why they have not stopped the $10 sale for Diamond honors 365 day valid thats flooded from China.. I’ve flagged similiar numerous times even in person with the Chris Nassetta. Poor people paying credit card fees to attain it. Shame.
New eastern Movie title :
Shanghai Platinum – the revenge of the bonvoyed
The fair comes in August.
This is first reply I’ve ever posted, partially to defend other comment calling the author “Chinese hater”. I’m Chinese American and I can confirm the figgly or 飞猪 deal is real but it’s just the tip of iceberg. In China, you can basically purchase the status challenge and stays as a combo on E-Trade website like 咸鱼. Not just Marriot, but any hotel/airline loyalty programs. Chinese is next level in terms of making profit. They will happily make money by manufacturing all these offers, status match (by Photoshop account details), fake stays, etc. China also has a huge black market for hotel / airline booking using stolen credit cards and stolen miles. They would Photoshop birth certificate or marriage license to make family account for easy points/miles transfer. Again, this is just a tip of iceberg. Any modern western loyalty programs, credit card benefits or even 14 days free return policy will be abused in China with 100% certainty. This is one reason why most international retailers failed in China (amazon, best buy, etc) Marriot low-key just played the players by moving the key benefits like room upgrade upward. It’s hard to regulate the Chinese without being looked racist, hard to articulate the problem without being called “Chinese hater”. But here’s my 2 cents to the author. I don’t think you’re when you just describe what you learn (and it is correct)
this is quite outdated no? are you finally finding and hating on something from 5 years ago circa 2018 and 2019?
@Dan – no, rules changed recently to make this far more available and easily accessible
Earning Platinum through many stays, & then “leaders” at corporate give Platinum away.
Just like paying off your student loan through hard work & then having some “leader” tax you to pay off other peoples loans.