hospitality

Marriott Issues Rewards To Utility Customers

Marriott Rewards and Energy PlusNortheast electricity delivery company Energy Plus is offering customers Marriott Rewards points every month when they pay their electricity bill. Specifically, users get 3,000 Marriott Rewards points after their second month as an EnergyPlus customer. They also get year-round Marriott Rewards points--two points for every $1 on the supply portion of their bills. 

A Marriott spokesperson said the deal is the first for the company that ties Marriott Rewards to a utility. "Energy Plus is our first utility service," she says. "Our members are telling us they want us to find partners that make their lives easier. This is one we thought we would try. We are continually looking for new earning and redemption partners, whether they are in the travel industry or outside, like Energy Plus."

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In addition to every major airline, Marriott Rewards' partner programs include Chase, where one can earn Marriott Rewards points for borrowing; FTD.com, where customers can earn 10 points per dollar; rental fleets Hertz and European company Sixt, which both offer 500 Marriott Rewards points per vehicle rented; Marriott's own Marriott Rewards Mall, SkyMall, The Luggage Club and Traveling Connect.

According to Chicago-based market research firm Mintel, more than 17 million travel rewards were redeemed in 2006. Mintel says that airline frequent flyer miles are actually becoming less valuable, while hotel loyalty programs have expanded and increased in value partly because of rising room rates. Per the firm, Hyatt reported that 95% of its Gold Passport loyalty program members redeem their points for free hotel nights.

Overall, Mintel expects that 2007-12 will see at least a 22% gain in redemption from travel loyalty programs. The firm says the total leisure travel market will see a 32% growth in loyalty-program redemption.

Marriott International, which opened its 3,000th hotel in November in Beijing, and launched the Edition- and Nickelodeon-themed hotels, posted full-year management and franchise fee revenue of $1.4 billion--up 17% versus the prior year. Edition is the new Ian Schrager-designed boutique hotel.

Mintel, in its September 2007 report on hotels, said 2007 would see $157 billion in revenue--up 9% since 2002 after adjusting for inflation. The firm predicts that hotel revenue will track GDP through 2012.

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