Ritz-Carlton, which for nearly 10 years resisted affiliating with the loyalty rewards program of its parent company, Marriott, is taking the plunge. The company last week announced the launch of Ritz-Carlton Rewards.
And while the program is linked to Marriott Rewards, the iconic luxury brand was careful to continue asserting its independence by positioning the loyalty program much like the Ritz-Carlton brand itself: as a separate, exclusive entity but one that draws on the advantages of its global powerhouse of a parent.
The Ritz-Carlton Rewards program offers its members full access to Marriott's portfolio of 3,300 properties around the world, and it lets Marriott Rewards program members earn Marriott points at Ritz-Carlton hotels.
But customers can be a member of only one of the programs, and only Ritz-Carlton Rewards members will be able to take advantage of the program's partnership with other luxury retail and travel brands offering exclusive access to packages that go well beyond free nights and free airfare.
"No other luxury hotel company comes close to providing such a full range of opportunities to earn and redeem points and experience some truly exceptional and exotic adventures," said Herve Humler, president and COO of the Ritz-Carlton Hotel Co. "We have already brought together some of the most exclusive names in travel and retail."
Humler added: "We will continue to add global partners offering our members the very best in customized and one-of-a-kind, memorable experiences."
For example, Humler said, Ritz-Carlton Rewards members will have access to members-only Abercrombie & Kent tours in destinations such as China, Turkey and Egypt; customer events and a half-day personal shopping experience with fashion experts at Neiman Marcus and Bergdorf Goodman; the ability to redeem points for wedding gowns and other products from designer Vera Wang; and workshops with National Geographic photographers at Ritz-Carlton hotels.
Members will also be able to redeem points for flights on 30 of the world's major airlines and luxury cruise lines, including Crystal Cruises, the Yachts of Seabourn and Silversea.
The luxury hotelier was purchased by Marriott almost a decade ago. And while Marriott Rewards club members have been able to use their points for free nights at Ritz-Carlton properties, the luxury brand declined to give points for stays. Like many luxury hotel companies, it operated under the premise that its high standards and service were enough to earn customer loyalty.
The change in philosophy was prompted in part by the recent economic downturn and a renewed emphasis among luxury customers on getting the best value, the company said.
Although the launch marks a sea change of sorts for Ritz-Carlton, the brand is by no means the first in the luxury space to offer points for stays.
Starwood for years has included its St. Regis and Luxury Collection properties in its loyalty program. Likewise, the InterContinental brand is part of the InterContinental Hotels Group's Priority Club, and Fairmont has its President's Club.
Four Seasons, on the other hand, has no such program. And it asserted last week in response to the Ritz announcement that it had no plans to create one.
"Research conducted with our guests tells us that loyalty programs are not the primary reason for choosing luxury hotels, "said Susan Helstab, a Four Seasons executive vice president. "Personal recognition has always been, and continues to be, critical to our guests. In addition, tangible acknowledgments of appreciation for their loyalty are also valued."
Helstab added: "We're concentrating our efforts on that personal recognition we know they value most. We'll keep listening to them and provide the recognition they've told us is most important to them.
"Formal recognition programs are something we continue to evaluate, and we'll also continue to be guided by what we are hearing from our guests."
Still, industrywide, hotel rewards programs have been growing in popularity because they provide yet another way to offer value to budget-conscious travelers during the downturn.
Starwood has led the way in developing loyalty programs that target even their most elite customers. Although offering few details, the company earlier this year said it was testing a program that went beyond the traditional focus on loyalty, targeting travelers based on their earning potential and ability to influence others to travel. The program targets both Starwood guests and those who belong to competitors' loyalty programs.
Like most rewards programs, membership in Ritz-Carlton Rewards is free. Guests can enroll online or at any Ritz-Carlton hotel.
Ritz-Carlton Rewards members will earn 10 points per dollar spent on the room rate at Ritz-Carlton hotels. Members will earn elite status starting with 10 nights per year for Silver status; 50 nights for Gold; and 75 nights for Platinum. Elite member benefits range from bonus points and exclusive offers of room upgrades to complimentary high-speed Internet access.
Meetings planners will be able to earn points on items such as guestroom blocks, meetings room rentals, catering, audio-visual services and contracted charges for spa and golf.