Skift Take
This is assuming Marriott and Starwood actually close their deal this year, which, given what's happened over that past week, is still not a sure thing, obviously.
Now that it appears the Marriott-Starwood merger agreement is back on, Marriott held a call for investors this morning, talking primarily about the new deal's terms, with CEO Arne Sorenson calling in from Cuba where he is traveling with U.S. Commerce Secretary Penny Pritzker during President Obama's historic visit.
Also included in that call were some clues as to what might happen to Starwood and Marriott, should their new deal go through and they do eventually become the world's largest hotel company.
In short, Marriott likes the fact that Starwood has a strong group of loyal customers, many of which are affluent travelers and Millennials. And for its part, Marriott believes the strength of its group sales network, customer database, strong corporate account business, and both domestic and international mid-market accounts make its new offer an attractive one for Starwood.
Here are some highlights:
The Loyalty Programs
Initially, the Marriott Rewards and Starwood Preferred Guest loyalty programs will be in run in "a parallel way" Sorenson said. Eventually, though, both programs will be combined, although it will most likely take years for both programs to become one.
"This is one of the most profound advantages, we think, of this merger," he said. "Longer term, we'll look for a combined platform. We think this will generate a hotel loyalty program that truly meets everything a hotel guest would want, and we believe we can position this program so customers can conclude there's really no other program that they need to be members of. In size, in choice, and in recognition we can provide to our guests, we think this loyalty ecosystem gives us the best tool we can possibly have to compete in the marketplace."
The way Sorenson described it, Marriott hopes to draw on Starwood's strength in the luxury and lifestyle space, and add it to Marriott's strength with business travelers, corporate accounts, and group business.
"With the advantages of
