Another Club Carlson Devaluation Coming June 1

May 04 2015

Last year Club Carlson reduced elite bonuses, moved many hotels up in reward category, and introduced a new more expensive top redemption tier. A month ago Club Carlson announced the elimination of the last night free benefit on award stays for members with their co-brand credit card. Now — effective June 1 — Club Carlson is changing categories for hundreds of hotels. Via Well Traveled Mile, 212 hotels get more expensive and 117 get less expensive. The increases are centered in Europe (where 128 – more than half the total – go up and only 27 go down). Asia Pacific gets less expensive (9 go up and 40 go down). None of this should really be surprising. The Club Carlson program was ‘overindexed’ (to use Jeff Diskin’s the awkward phrasing). You can generally expect offerings…

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Starwood’s CEO Has a Unique View on Loyalty

ronald mcdonald in united plane toy
May 03 2015

Adam Aron no longer has ‘interim’ in his Chief Executive Officer title at Starwood. He launched Pan Am’s first frequent flyer program. As Hyatt’s Chief Marketing Officer he launched Gold Passport. I had the pleasure of interviewing him on stage at the Travel Executive Summit on Thursday in Atlanta. Aron was Senior Vice President of Marketing at United and I got to tell the story about his economy meals partnership with McDonalds (the associated happy meal toys available on United’s Orlando flights are still available for sale on eBay). United replaced the galley carts to keep the burger warm while the lettuce and bun stayed cool. He was CEO of Norwegian Cruise Lines, of a chain of ski resorts, and later went into private equity. He became part owner and CEO of the Philadelphia 76ers.…

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What Would it Mean for Starwood to Acquire Another Chain.. Or Be Acquired?

When IHG swallowed Kimpton, I wrote: “I want to be an IHG Rewards Club Platinum” said no Kimpton elite member, ever…

Conventional wisdom is that Starwood is going to do a deal, and the most likely candidate is IHG. Some say Starwood could buy IHG. I could see IHG buying Starwood. IHG is the bigger hotel chain, though Starwood’s market cap is much higher (nearly $15 billion versus ~ $10 billion).

Starwood has struggled to generate growth and Wall Street isn’t happy. Fundamentally that’s why their CEO Frits van Paasschen was out in February…

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