Randy Petersen
Continuing with our live chat series to bring together the movers and shakers in the industry with the members of their programs, we welcome tonight Jim Berra, Vice President of Loyalty Marketing, Starwood Hotels. Jim is THE guy when it comes to all things SPG and we acknowledge that they are a Freddie Award winning hotel loyalty program. As many of you know, SPG has been a very big supporter of FlyerTalk and was among the first to monitor the Starwood forum with their own customer service rep. They have also asked the board for input on changes to the program and you really can't get any better than that when they do listen. So with all the honors due any guest on FlyerTalk Live!. welcome Jim......

Jim Berra
Thanks Randy. It's great to have the chance to chat.

Mikel at WebFlyer
This question was submitted earlier by Diane: When are you bringing back "Free Fridays" or "Free Weekends"? Are you doing "Pays to Stay" 10,000 bonus points this year?

Jim Berra
Free Weekends is back starting March 1. This was going to be my big announcement but the call center beat me to the punch. Earning will run from march 1 through june 30th, with redemption between April 1 and August 31. Thanks for the question and the suggestion

dc3
Why don't Platinum members get free breakfast at all Starwood properties?

Jim Berra
We've looked at this a couple of times and worry that without the revenue from breakfast, our hotels cannot operate three meal a day restaurants effectively. Thanks for starting me off with an easy one.

Lulu
How does Starwood determine who are getting targeted for promotions.

Jim Berra
It's based on a number of criteria. Essentially, we are looking for segments of members where there's a great opportunity to move share. Another controversial one. I'm on a roll.

thezipper
SPG threw a great get together for the Freddies last year, (Thank you VERY much!!) Any sign of a repeat or some other "surprises" this year? Remember the Freddies are exactly 2 months away...

Jim Berra
We've decided that instead of one party we will host a number of platinum events this year. We've hired a promotional agency to get creative. Suggestions?

Mikel at WebFlyer
This question was submitted earlier by Jamie: I loved the 1K bonus program; any chance we will see this again this year? If not, are there any other point bonuses to look forward to?

Jim Berra
We're currently evaluating the promotion and reviewing options for the fall. I'm betting that it produced well as it was simple and generous. After 9/11, we wanted to use a promotion that gave rewards on every stay v. hitting a threshold. Regardless of whether 1K comes back specifically, we will continue to aggressively use points based promotions- they're quite effective. Thanks.

Guava
Does Starwood plan to increase the earning power of Platinum members from 3 starpoints per dollar to 4 points in the near future?

Jim Berra
We don't have this planned. Instead we are looking to make our awards less expensive through promotions like Cash and Points and putting awards at select hotels on sale.

Mikel at WebFlyer
This question was submitted earlier by Mike B: Hi Jim, Are there any thoughts of switching over the Amex Starwood Preferred Guest card to a VISA or Mastercard branded card? This would enable the members to receive a greater merchant acceptance rate for their purchases? Thanks!

Jim Berra
Not at this point as we've signed a long-term deal with American Express in the U.S. Thanks.

Sparky
The no blackouts is great but it seems to take a lot of spending to get a free night at a Sheraton compared to Hilton and Marriott. Do you have any plans to offer discounted awards like Pointstretchers that might be fewer points?

Jim Berra
We launched Cash & Points earlier this year and it has proved successful thus far. We are looking to build an Award Sale product in key destinations. I would expect the first this summer. Thanks.

Suthern1
Is there any way for a member to be added by choice to any of the "targeted promotions"? What criteria puts you on the list?

Jim Berra
We have in the past added members to promotions and will try to accommodate. I saw earlier on the message board that our agents have been firm in not making exceptions. We've asked them to open it up to requests from loyal members. I realize we need to strike a balance. Thanks.

MagicMan19
I liked the concept behind Cash and Points, but the hotel selection was too limited. Any plans to expand this to include more properties?

Jim Berra
Absolutely. In fact we just added the Westin Maul and the Sheraton Princess on Oahu today. Look for new additions every month. Thanks.

TropicalFlyer
How about a platinum promotion with increasing points for stays in each of the 50 states? The more states you visit, the more points.

Jim Berra
That's an interesting idea. Let me give it some thought. It might not be fair to the consultant who spends every week away, but always in the same city. Thanks.

Mikel at WebFlyer
This question was submitted earlier by Cigarman: Jim, I am becoming very disappointed in the lessening of requirements to become elite. Due, to many promos Golds were so common that any status below that was useless. As a Platinum member who stays about 100 nights a year with you, I was dismayed to see the lowering of the number of nights to earn Platinum. Neither, Hilton or Hyatt did the same. Why would Starwood do this?

Jim Berra
I can understand your frustration in this area. This decision was definitely the toughest one we had to make post 9/11. We felt that it was ultimately the right thing to do in terms of not penalizing past loyal members who were impacted by the economy and the events of 9/11. The airlines also took this approach and I know that they've been wrestling with the same issue. Thanks for the opportunity to respond directly to the group.

Sparky
How do you feel about Marriott and Hyatt coming out with "Anytime Awards" like Starwood has? The ones at Marriott seem to be a better deal than yours.

Jim Berra
It varies by market in terms of whose rewards are better priced. For elite members, because of our 50% earning bonus, you're actually in better shape in most markets.

Jim Berra
I thought it was flattering that they attempted to move more in our direction. It validated our approach in terms of giving loyalists more flexibility and less hassles. Thanks.

BoSoxFan45
The definition of "select suite" is quite broad, and allows the hotel to dictate which suites are so classified. Would it be possible to allow members access to a list of what suites are "upgradeable" at a particular hotel? Some hotels appear to place virtually all, or all of their suites on the "select" suite list, thus removing the hotel from its obligation to upgrade a SPG Platinum members, which can result in bad feelings.

Jim Berra
This is a great questions and we're actually working through a large-scale project to refine upgrades. I agree that it is confusing today, particularly across brands. The company has invested in Six Sigma to help elevate our service delivery. Taking care of Platinum members is one of the first major initiatives it will tackle. Thanks for the suggestion.

Randy Petersen
Say Jim, you are certainly the star tonight, thanks for the time from your schedule. I thought I'd jump in here for a moment... With the Freddies coming up agin in a month or two, how do you think you've improved or delivered SPG over the last year to warrant the voting public's choice again for your program as Program of the Year?

Jim Berra
Our biggest improvement was definitely the launch of the new SPG web site. We still have a lot of work to do in this area, but I do believe the new site was a good first step. Ultimately, the web will become the primary global interface for building relationships and transacting. It's exciting to be in the business at this time as technology is making it possible to ultimately deliver great content based on the preferences of the individual.

Randy Petersen
I've got to say that the 1K per day bonus was really a star in my eyes. That was truly rewarding and can't think of another bonus that got as much attention from my own hotel use as that one did. I also know it got a lot of buzz from many other travelers I know that visited us here - they all wanted to stay at the Sheraton because of that bonus, congrats.

Jim Berra
Thank you. Every once in a while I have a good idea. We will definitely try to build on its success like we have with Free Weekends.

Randy Petersen
I better return you back to the FlyerTalkers for their questions, thanks and let's move on.

Mikel at WebFlyer
This question was submitted earlier by Cigarman: Can the lurker be cloned? Or at least paid so much he never leaves Starwood? He is responsible for so much goodwill.

Jim Berra
William has the highest level of job security in the company. As far as cloning, I'm in marketing which means I have no clue when it comes to anything scientific. I'll pass your comments on to him. Thanks

chix
Would SPG consider a lifetime elite status where by staying xxx nights you are vested for life?

Jim Berra
We are running the numbers on this idea as it's been suggested many times. Through William, we will keep you posted on how the analysis plays out. Thanks.

Jon
How long will the platinum amenity bonus be around?

Jim Berra
We're currently researching the amenity program which was another new addition last year. I expect that we will find that it has been successful and will look to roll it out in other divisions- Latin America is a leading candidate. At this point, we have no intention of removing the bonus as it has proven the most popular of the options. Thanks.

BoSoxFan45
Any chance that platinum members will get a greater earning bonus than golds and other elites? This is the only program I know of that does not offer a greater earning bonus to its highest earned elite tier. Is something like this in the works?

Jim Berra
We're actually looking in directions other than rewards to enhance the Platinum member experience. As I mentioned, we are working on improving the upgrade portion of the program and our looking to add member events and other recognition components. We should have good news in the next couple of months and will keep you posted. Thanks.

Mikel at WebFlyer
This question was submitted earlier by Evan Batoff: I don't believe that Southwest Airlines is a partner in the Starwood program. Any plans to include Southwest Rapid Rewards in the future as a program to which Starpoints can be transferred?

Jim Berra
We've had conversations with SWA in the past and personally I think they run a very smart program. Over the last several months, the partnership front has been very calm as everyone was assessing the impact of 9/11. Now with things feeling more normal, we will take up the discussion again. Hopefully, they'll be at the Freddies again this year which is the last time we talked. Thanks.

TropicalFlyer
Are there plans to increase the platinum concierges? I seem to get the special services people most of the time I call and they don't know as much as the platinum concierges.

Jim Berra
I've heard this complaint more frequently of late and we are assessing our current staff levels. I would expect that we will bring on more agents as call volume returns to more normal levels. Thanks.

Jon
Any possibility of using points for other things at hotels such as discounted/free golf?

Jim Berra
We actually have a program called Instant Awards that allows you to cash in 2000 pts. for a $20 folio credit. If the hotel or resort allows you to charge golf to your room, you can pay for it through Instant Awards. Thanks for the question.

jan
Hi Jim - I sent this question in earlier, but couldn't join the chat until now. Please accept my apologies if you've already answered it... or if it's off-topic. I found out that the Westin Stamford and Westin Plaza in Singapore had been sold, leaving the Singapore Sheraton as the only SPG property in the country. Could you comment on how this fits into Starwood's strategy for Asia, and if there are plans to add more properties in Singapore/Malaysia?

Jim Berra
At this point I don't know of any immediate plans for the area. Singapore is definitely an important global market and I'm certain that if the right opportunity presents itself we'll jump at it. Thanks.

Mikel at WebFlyer
This question was submitted earlier by Dabbagmm: What happened to the service & reservation centers in the Middle East? I used to dial an 800 to make reservations and now I have make an expensive long distance call to call SPG center in Ireland to make a reservation. Is Starwood turning its back to its loyal clients in the Middle East?!

Jim Berra
We did close our center in Dubai, but you should have access to a global toll free that is answered by our call center in Cork, Ireland. If this isn't the case, let's touch base. Thanks.

Lulu
One of the big benefits you have is to allow us to transfer Starwood points into airline miles, but I would really like to transfer airline miles into Starwood points, is that in the works?

Jim Berra
The issue actually resides more with the airlines. Traditionally, they've been reluctant to build this feature. Thanks.

BoSoxFan45
Last year Hoyt Harper mentioned that a plan was in place to allow on to earn Starpoints on their gaming line of credit at Caesar's. Also there was some stuff with the PGA. Nothing has come of this. Are these dead? What about Platinum Member Events? Are these dead also? Were they ever alive?

Jim Berra
On Caesar's, I will call my contact and ask if the have any desire. If I were in their shoes, I probably wouldn't want the additional cost as it's unclear if it would drive additional gaming revenue. With the PGA, we've struggled on how to integrate them. The only thing we have planned is to give away tour tickets to our best members for select events. We are definitely moving forward with a couple of member events this year and have actually signed a promotional agency to manage the details and make certain that the events are well received. Thanks.

Randy Petersen
Well, we're almost out of time. Since you've been a great guest this evening Jim, I thought I'd give you a chance to ask a question or to at least put in a few works unasked..... Like the others, I'd like to publicly thank you for supporting FlyerTalk and echo the remarks of the value of William.

Jim Berra
I wanted to ask the group if they are moving forward with providing a monthly list of hotels that our not delivering on the Platinum benefits. This would be very helpful as customer feedback is ultimately more effective than me complaining.

Randy Petersen
One question i have is related to the tax on miles. We've been reading how other programs consider passing on the federal 7.5% tax when converting into miles with airlines. Where does Starwood stand on that - consideration or do you think it will happen from any of your competitors?

Jim Berra
I'm not sure where this issue will ultimately net out. From our perspective, we are not going to pass through the tax. This issue will be an interesting one to watch play out.

Mikel at WebFlyer
This question was submitted earlier by Tom Murphy: Why are so many hotels unable or unwilling to honor the SWPG program? Read the postings here: upgrades, amenities and knowledge of the program rules seem to be the exception, not the rule at SW hotels. Any ideas why and how do plan to change this?

Jim Berra
Your frustration is honestly the hardest part of my job. We've spent a considerable amount of time and money to train associates around the world. We've also, as I've mentioned, invested in Six Sigma to help us improve our consistency. There are several projects underway, with the largest being improving Platinum benefit delivery in our hotels. Again it's helpful to receive specifics as we do call out and forward complaints. Thanks.

Mikel at WebFlyer
This question was submitted earlier by Cigarman: Is Starwood ever going to expand the midmarket hotels in smaller towns (i.e Hampton Inn with Hilton), so I can get rid of my 90 Hilton nights a year and move them to Starwood?

Jim Berra
Today, we don't have specific plans to go after this segment, but Starwood is a very opportunistic company. Thanks.

bcalsk
have you ever considered a board of members to help you inprocess improvements?

Jim Berra
This is a great suggestion and one that I would like to eventually implement. The first area where I'd like to go is in relation to improving our web site. Expect more information from us this fall as we start phase two development.

Jim Berra
Once again, I want to thank everyone for this opportunity. Flyertalkers know loyalty better than a lot of the people running the actual programs and your feedback is by far the most valuable as we think about innovation and relationship building for the long-term.

Randy Petersen
Time is up. Another great night for members of the Starwood Preferred Guest program. As we have learned, these are inquiring minds that want to know and tonight Jim Berra, you were the star along with all the many employees that make SPG what it is today. Thanks and we'll see you get a gift from FlyerTalk in the mail and look forward to seeing you again on another session of FlyerTalk Live! and also hope to see you at the Freddies in about two months. I know a lot of your members like to turn out for that event. A final thanks and now we'll let everyone get back to chatting among themselves....as to where OMNI and Randy Petersen are. Good night all.

Randy Petersen
Thanks Jim, you've earned yet more respect from this group. Cheers....

Jim Berra
Thanks again Randy for the opportunity. Come out to New York soon.