I’d file this under highly speculative but according to a Frequent Miler reader who was apparently mingling with Marriott employees at an SPG lounge (I did say it was highly speculative) the separate Marriott & SPG programs will be combined in late 2018 and the current credit cards will be replaced with a three tier card system and a really good initial offer. No other information was given (e.g card issuer) Frequent Miler is speculating that because of the three tiers that American Express will be the issuer as they have a history of this style (e.g Delta cards & and now also Hilton with the no annual fee card, Hilton Ascend & Hilton Aspire). I think that makes sense, but Chase could have easily copied the model and it could also be argued that they already offer a three tier card system with the Marriott no annual fee card, Premier & Ritz-Carlton.
Chase just released Chase Offers on the Marriott cards (and Slate) and that would be a strange decision to make if they are definitely losing that portfolio, although it could be part of their strategy to increase cardholder spend to increase the backbook if American Express is planning to purchase it. I believe that Chase’s card contract ends in 2018 and American Express’ end in 2020, I’m sure there are some provisions in there for what happens in case of any merger/sale as well. My personal opinion is that nothing has been decided as of yet and Chase & American Express are both trying to win the partnership. In any case I’ll check in with some sources at both Chase & American Express to see if I can find out anything else. As always if you’re in the know, share the love and let me know ([email protected]).
I know some people hate these speculation posts, but personally they are my favorite ones to write and you can always easily skip them with ‘rumor’ being prominently displayed in the title.
Thanks Doc for the information by the way!
Didn’t the CEO of Marriott state at one point that he is not adverse to having two credit card issuers? So, it might boil down to both AMEX and Chase being the future co-brand card issuers. Or, my dream would be for Citi to snatch the portfolio and “shock” everybody. Then again, Barclays might even get it. Which I would loathe!!
Citi seems to be the one in a better position, hence they just wrote Hilton off of their books, and after December 13, 2017 will have no hotel co-brand partnership nor a hotel transfer partner for the Thank You Program. And just as another poster mentioned, I don’t think AMEX can fund and invest entirely/exclusively in two large hotel chains, without loss or eventually suffering with another partner. The best AMEX could do is to fight to co-issue cards along with Chase or maybe Citi.
If 5/24 applies to any brand, there won’t be much interest. If Amex’s rats apply there won’t be much interest. Chase has treated me better than Amex in the last year so I ditched most Amex cards. Maybe I won’t care about the Marriott brand anymore if the bank makes using their cards difficult. Rather than walking on eggs, I’ll just walk away. Plenty of places to stay in the world.
@Tom you’re a complete idiot
Says the person who can’t even properly reply to a comment.
Do you care to explain your opinion?
If they put a 3-tier lineup, that could also mean they keep AMEX and Chase for the time being. I guess an exclusivity would be a better deal for Marriott, but only if Amex and Chase fight for it.
Does this mean to those who haven’t got a SPG card, it’s better to get it now?
If a new card is issued to replace an SPG, will the SPG card holder be eligible to apply for it and get sign-up bonus?
Nobody knows for sure but I would speculate YES to both questions.
Thanks for sharing Doc! A fresh 3-tier lineup that’s better than the current lineup would be awesome. I’m one of the few who really wants Amex to win. Reason: very good chance the Amex Platinum Card would Get Marriott Gold Elite status with no spend requirement.
I would rather see Amex get the contract over Chase for a few reasons:
1) I don’t want to lose SPG/Marriott Gold status through my Amex Plat card
2) I don’t want the new cards to be restricted by 5/24.
3) Amex offers ( I know Chase just released something but we have no idea how it will compare to Amex offers)
Based on pure speculation or based on some sort of actual evidence or rumors?
Doesn’t the once per lifetime rule completely protect them from churners? It almost does so by definition.if you can never get a bonus again- EVER- you can never churn anything at all. Why would they need something else?
Not sure why you meant that Amex has the most to lose?
Chase has a much bigger business with SPG/Marriott than Chase does.
Also, other than Hilton (which I would speculate Citi *withdrew* from more than Amex *won*), Amex hasn’t really been that creative lately or been willing to ante up for the wins.
Amex just invested in Hilton, and they don’t want to upset their newly acquired crown jewel, so I bet they don’t get this one. Chase will push harder.
I do not think this is going to happen, or any time soon. Both Marriott and SPG are so solid. The Citi Hilton is just too small and not a log loyalty. Easy to take the loss for Citi.
I like some competitions. Chase’s 5/24 drives more card holders to SPG. So I hope SPG catches up the Marriott.
You do realize that SPG will be merged with Marriott within the next year or so, right? There’s not really much catching up to do…
You also realize that Chase’s 5/24 really only drives undesirable customers (Churners) to the SPG card. It may be big in your world, but it’s small impact on their overall cc portfolio business.
Not all over 5/24 are undesirable. Many are high spenders, especially on travel. 5 in 2 yrs is a pretty low threshold to define an undesirable.
And for those people, it’s really not that difficult to get targeted for online or in-branch pre-approvals.
Only churners jump through hoops like that. “Normies” will just Get pissed off at Chase and take their business elsewhere when they get turned down for a CC.