Marriott International Inc.
) and American Airlines -- a major U.S. airline owned by
) recently formed a pact to bolster their loyalty programs. This
strategic alliance will serve members of their respective loyalty
programs - Marriott Rewards and American Airlines' AAdvantage
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AAdvantage is one of the largest frequent flyer programs while
Marriott Rewards helps its members earn and redeem points at
3,700 hotels across 14 distinctive brands around the world.
Per the deal, beginning Jun 17, members will be able to gain and
redeem AAdvantage miles points at 14 participating Marriott
brands worldwide. Common members will also have the opportunity
to convert Marriott Rewards points to AAdvantage miles.
Depending on the property, the members of these loyalty programs
can gain 1-2 miles per dollar spent on room tariff and 2 miles
per dollar spent on other qualifying transactions.
Loyalty programs have been gaining precedence these days.
Emerging from an economic crisis, competition in the industry has
been cutthroat and consumers have become price-sensitive. Hence,
companies, which mainly cater to leisure travelers and frequent
corporate visitors, have been diligently working on every
possible option to augment guest satisfaction and stay
Amid the prevailing environment where travelers spend less
enthusiastically and seek incentives for doing so, companies are
frequently coming up with such programs to boost sales.
The fact can be validated by another loyalty program deal that
took place this month between hotelier
Hyatt Hotels Corp.
) and casino-resort operator
MGM Resorts International
). The deal will allow members to redeem Hyatt Gold Passport
points at 12 participating MGM Resorts in Las Vegas. Similarly, M
life members will win M life Tier Credits during their stay at
Hyatt resorts and hotels worldwide.
Marriott currently carries a Zacks Rank #2 (Buy).