The Extra Mile

Hotel Programs Make Room at the Top for Frequent (and not so Frequent) Guests

Elite status is within reach in frequent-stay programs

April 24, 2006 - Twenty-five years after American Airlines launched the first mileage program, AAdvantage, more than one-third of Americans are members of one or more airline and hotel rewards programs. And the numbers continue to grow.

Understandably, that success delights travel marketing executives. But from their perspective, the programs' success is less about the big numbers than it is about the small ones. The programs enable marketers to identify a company's core group of highly profitable customers and reward them in proportion to their contribution to the company's bottom line. Those rewards are a palpable "thank you" in the short term. And the prospect of retaining extra benefits in subsequent years is the carrot which keeps travelers coming back for more.

The airlines began the process of distinguishing among good, better and best customers in the programs' early years with the addition of elite tiers to their programs. As it stands today, most major programs have four categories of membership: general members, by far the largest group; and three elite groups, typically referred to as silver, gold and platinum or the like. A traveler typically earns silver status by flying 25,000 miles during a calendar year. Gold requires flying 50,000 miles, and platinum status kicks in at 100,000 miles.

In exchange for their loyalty -- as measured by the miles they've flown -- program members receive progressively more bonus miles and easier access to flight upgrades as they reach higher elite tiers.

Hotel programs have elite members, too

It's possible to generalize about airline elite qualification and benefits because the great majority of larger airlines designed their elite schemes along similar lines. There's no such conformity among hotel frequent stay programs.

As it is with airline programs, the featured benefits of the hotel programs' elite tiers are upgrades and bonus points. But where airline programs have tended to adhere to a common template, the hotel programs differ considerably in both their elite qualifying criteria and in the perks awarded.

Of the largest hotel programs, Hilton offers its HHonors members entry-level elite status after four stays or 10 nights during 12 months. At Marriott, elite status kicks in after 10 nights; with InterContinental's program, Priority Club, the minimum requirement is 15 nights or 20,000 points; and members of Starwood's program must complete 10 stays or 25 nights.

While Hilton maintains a low threshold for attaining elite status, the benefits are modest as well. Silver elites receive a 15% bonus on earned points and complimentary use of the hotels' health clubs. But members will have to reach Gold status -- awarded after 16 stays or 36 nights -- to receive upgrades.

InterContinental and Marriott also reserve upgrades for higher-level elites. Both restrict upgrades to program members who stay at least 50 nights per year.

Starwood is the only one of the mainstream programs to bundle upgrades with first-tier elite benefits, which include a 50% points bonus. So although Starwood has a higher threshold for earning elite status, it also takes fewer Starwood nights to qualify for upgrades than in competing programs.

For those seeking upgrades across a national network of hotel brands, Starwood's Preferred Guest program may be the best choice. If upgrades are not a priority, Hilton puts the benefits of elite status within reach of many travelers who otherwise might not think of themselves as candidates for special benefits.

Other benefits, other roads to elite

Experienced travelers know that the benefits of elite membership can go beyond those published in the program handbook. Hotels understand that elite members of their programs are their bread-and-butter customers and regularly express their appreciation in ways large and small. So, for example, hotel employees are disposed to exercise a bit more flexibility in accommodating an early check-in or late check-out for elite guests. They're less likely to book elites into the room next to the ice machine. And they're apt to extend an extra-warm greeting at check-in -- a welcome prospect after a long day's journey.

For those who aspire to elite status but don't register the required number of nights or stays, there are other routes to elite. Co-branded credit cards linked to the programs of Hilton, Marriott and InterContinental feature automatic elite status among their benefits.

And travelers can purchase Gold status in InterContinental's Priority Club for $50 per year.