Starwood Hotels & Resorts’ SPG Pro loyalty scheme was launched last month, offering guests rewards under one umbrella. Hotelier speaks to Asad Ahmed, Starwood’s vice president of sales EMEA, to find out how the firm is reaping the benefits of a joined-up approach
The 660-room flagship property of Starwood Hotels and Resorts, Sheraton Grand Hotel Dubai, is beginning to take shape on Sheikh Zayed Road next to the H Hotel. Overlooking the construction site is the Middle East head office of the company, which this year for the first time houses both the hotel sales teams and above property sales team.
According to Asad Ahmed, Starwood Hotels & Resorts vice president of sales for Europe, Middle East & Africa — who spoke to Hotelier Middle East during one of his quarterly visits to the region from his base at the Brussels office — these were traditionally “two disparate populations”.
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As a result, one of Ahmed’s focuses since he began his role 18 months ago, has been on “focusing those pieces together”. Alignment has come in the form of more joined up communications between the sales team, sales training across the organisation, and ultimately in the end-result for the customer.
This “culture shift” is reflected in the launch of SPG Pro — an extension and consolidation of the Starwood Preferred Guest (SPG) scheme. Currently accounting for 50% of occupancy worldwide, and 51% in the Middle East, the SPG scheme is known for its status driven nature — rewarding guests with platinum and then gold status — and for its focus on experiential rather than material rewards.
Instead of winning air miles and room nights, guests are offered “experiences money can’t buy”, such as a golf match with Tiger Woods or back-stage passes to Cirque du Soleil.
One issue with the scheme, however, that Ahmed highlights was: “We didn’t have a programme for every potential B2B population” and with B2B visits accounting for nearly 70% of Starwood’s overall room revenue and the top 1% of these accounts driving 40% of Starwood’s B2B revenue, this was an issue.
“We had to try and plug that gap,” comments Ahmed, who explains that previously there were “business loyalty programmes that rewarded corporate bookers and a programme that rewarded meeting planners”, but the new programme is about “being able to put the pieces together”.
The launch of SPG Pro on October 15 at Starwood’s 1200 hotels globally means that guests can accumulate points for every type of visit under the same umbrella.
“At the end of the day, our hope is that we get more loyalty from the guests because we’re rewarding all of their behaviours and getting them incentives and rewards faster,” Ahmed continues.
“So previously you were getting points when you booked a meeting at a Starwood hotel. Next week you go on vacation and you stay at a Starwood hotel and you get SPG points because you’re staying as an individual.
“Great schemes on their own, but they didn’t recognise that you are an individual and you have potentially got two or three relationships with Starwood and we weren’t able to put those pieces together for you to optimise the potential loyalty and value that you get.”
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