Hold on to your hat, shooter, the winning is only going to continue, and in some cases get better.
In April 2016, Marriott purchased Starwood Hotels & Resorts, creating the largest hotel chain in the world. Despite the acquisition and expected changes to the SPG credit card—which have been worked out over the past two years—we’ve recommended that you hang on to the card, as keen FCF-ers will know that we’ve been big fans of SPG’s Starwood credit cards for a long time.
Here’s Why We Were Right
News came in on April 16 detailing the changes to the SPG-Marriott loyalty program. The new program takes effect on August 1, and our considered advice is to stand pat.
(More on the changes below in next month’s FCF Upgrade Advisor and through our upgraded Card-iogram Widget which will look at the big picture in the rapidly evolving credit-card landscape.)
QUICK Summary of the Merged Marriott-Starwood Points Program
As far as transferring points to miles, the new program is very similar to the old one. Don’t worry, your current SPG points, and any points you earn between now and August 1, WILL NOT BE DEVALUED.
Different Math. Same Result.
In a one-time conversion on August 1, current Starpoints will automatically become Marriott points and your Starpoints balance will be multiplied by three. So, 20,000 SPG points, for example, will equal 60,000 Marriott points.
Marriott points will transfer to 50+ airlines—nine more than your SPG points do now!—at a 3:1 ratio, meaning 3 Marriott points will equal one airline mile. You will also get (the same) 25% bonus when transferring in increments of 60,000 Marriott points. That will yield 25,000 airline miles, the same way Starpoints did with 20,000 of them.
Long Story Short
Get a 25% bonus on transfers with 40+ airlines now. In August, get a 25% bonus with nine MORE airlines (currently not available to transfer from SPG), including Qantas and South African Airways, so, stand pat.
Let’s be really clear: DO NOT rush out and empty your SPG piggy bank into any airline mileage account, because your current SPG points will be worth the same today as they will be on August 1. So, hold it right there, pardner!
Don’t Show Up at 11 for High Noon
We’ve been amused to see some “travel expert” cowboys ride in very quickly on this one, shooting from the hip. The point, FCF believes, is to see the Marriott program in the context of the entire credit card landscape.
I am, and it is sparking a mindset upgrade when it comes to the plastic in my wallet. In particular, I’m thinking about what’s happening from three perspectives, the ones serious premium travelers care about most at the moment.
2018’s Evolving Credit Card Triangle:
Point 1—The new Marriott program: It’s great features to use my existing SPG points with—and all the SPG points I can get my hands on by July 31.
Point 2—Realize the game-changing FCF discoveries and everyday Upgrade Mindset opportunities: Chief among them is our LSS Strategy, which uses stop-over rules to create innovative itineraries via Japan Airlines for oneworld members, All Nippon for Star Alliance members and High-ROI Freaks, and Korean for SkyTeam members.
Point 3—Re-evaluate the plastic in your wallet: That’s what I’m doing right now. The landscape is changing, the deals and strategies are changing, new cards are arriving in the market, and in the next issue you’ll get our latest thinking and our upgraded Cardiogram Widget.
FCF’s team is number-crunching like crazy to bring you the most comprehensive credit card review we’ve ever done so you can better know which cards to hold and which cards to fold.
More to Ponder as You Wander the New Marriott Program
- Marriott, Ritz, and Starwood program information
- New elite status tiers & benefits for Starwood members
- Marriott’s Platinum room upgrade promise
- New award chart for free nights
FCF Puts Its Money Where Its Mouth Is
I sent you an email last week with a screenshot showing what I spent on one of my SPG Amex cards in the first week AFTER the announcement that Starwood Starpoints is going bye-bye. I’ll include that again with the $5,537.72 I put on my card that week:
See you soon—with a new quiver of upgrade arrows!