What you need to know about the Starwood-Marriott drama, but more importantly, how to go on hitting upgrade home runs with Starwood and its 35 partners.
If you have been with FCF for even a short time, you know that we think Starwood Preferred Guest is the best credit card (by far) for claiming significant discounts on Business and First Class air travel.The two main reasons are the card's 35 transfer partners, the most of any credit card, and the 25% bonus for every 20,000 points transferred to one of those partner airlines. It’s the king of credit cards. (Amex Membership Rewards is the queen, with 17 transfer partners.)
The Drama
Long story short: On Nov. 16, 2015, Marriott offered to buy Starwood but was then outbid by Anbang, a giant Chinese insurance company. Marriott made a counter-offer, which was accepted and approved by stockholders of both hotel companies in April. There was lots of other drama in-between.The sale caused some Starwood Preferred Guest cardholders to wonder if the card's key benefits would be diluted.
Why I’m Not Concerned
If this acquisition is anything like the last three major airline mergers (and I have no reason to doubt that it won’t be) the Marriott and Starwood programs will run independently for a while before being combined. The most recent Starwood statement says: “We don’t anticipate launching a newly combined program until 2018. This means SPG will continue to run separately until then.” (See details here.)That leaves at lot of time to hit upgrade home runs.
And, I think there’s a 90% chance Marriott will give loyalty-program members advance warning about changes to either program. I’ll wait until then to worry about what to do with my Starpoints.
In the meantime, I'm still using use my Starwood cards daily for most purchases.
11 Quick examples of why to keep your Starwood card over the next 12 months
1. Last month, Starwood added a new airline transfer partner, Virgin America, which increases the card’s value. In Business Class, Europe starts at 30,000 Starpoints round-trip (plus $910 to $1,150 in taxes) on Virgin Atlantic; Australia at 65,000 Starpoints on Virgin Australia (+$127); the Middle East on Emirates at 80,000 (+$1,410); Asia in First Class on Singapore at 105,000 (+$40) and Business Class at 80,000 (+$40). More details.2. First Class between the U.S. and Europe on Star Alliance through Starwood’s six airline partners starts as low as 80,000 points—which means 15,000 fewer miles than United charges for Business Class—netting a double upgrade.
3. Business Class between the U.S. and Asia on SkyTeam through Starwood’s six airline partners starts as low as 75,000 points—which means 65,000 fewer miles than Delta charges. United charges nearly as much for coach.
4. First Class between the U.S. and Asia on oneworld through Starwood’s five airline partners starts as low as 100,000 points—which means 30,000 fewer miles than United charges for Business (aka a free upgrade).
5. Business Class to Asia on Star Alliance through Starwood’s five airline partners starts as low as 60,000 points—which means 10,000 fewer miles than United charges for coach (aka a free upgrade).
6. Business Class between the U.S. and southern South America on oneworld through Starwood’s five airline partners starts as low as 55,000 points—which means 5,000 fewer miles than United charges for coach (aka a free upgrade).
7. Free First Class award space on Emirates A380 between the U.S. and Milan through Starwood partnership.
8. Free First Class award space on All Nippon between U.S. and Tokyo through Starwood partnership.
9. Free First Class award space on Etihad between U.S. and Abu Dhabi through Starwood partnership.
10. Free First Class award space on Asiana between U.S. and Seoul through Starwood partnership.
11. Lufthansa’s First Class Suite through Asiana’s loyalty program—with Starwood partnership 80,000 points.