Would a Super-Elite/VIP tier make you more loyal?

A discussion has come up on another forum debating the issue of promotions to earn status.  Marriott offered a promotion to allow members to earn double night credit toward elite status for this year, AND roll-over any nights above their current status for credit in 2010 for status in 2011.  Starwood offered a similar promotion allowing members to choose to earn double nights for this year OR to apply the double nights to get a head start on status for next year.  These promotions have the possibility to create a divide amongst the “true VIPs” – those who actually stay and pay for the number of nights to attain VIP status; and the “false VIPs” - those who would not have attained the status if it weren’t for the promotions.  And then there’s the “Super VIPs” – those who greatly exceed the minimum requirements for status.  If everyone is now a VIP, are the rewards for spending half your life in a hotel diminished?

While it is great for business to have members attaining and retaining VIP status, the question arises about the “quality” and availability of these benefits to the “true VIPs”.  If room upgrades are offered to all VIPs on a first-come, first-served basis, then the likelihood of the upgrade diminishes as more VIPs are contending for the upgrade.  Because the number of upgraded rooms is fixed, it is simple math and statistics to prove this point.  If VIPs are granted access to the executive lounge, the more VIPs in the lounge, the less chance you will find a seat, the more chance that your favorite food/drink will be unavailable.  Some hotels offer special parking for VIP’s, the same logic applies.  Other VIP benefits like bonus points are not subject to physical limitations so the number of VIPs receiving the benefit does not diminish the availability for another VIP.

So what’s fair?  Would it be fair to somehow distinguish between the “true” and “false” VIPs and tailor the benefits to each?  Personally I dont think so.  If I was given Platinum status as a gift having not earned it based on the traditional rules (which has happened – see Status Matching article), I would not want to received diminished benefits because it was a gift.

What might be a more fair approach is to reward the “Super VIPs” with something additional.   For example, Marriott Platinum status requires 75 nights paid per calendar year.  What about the person who pays and stays for 150 nights?  Is it fair that this person receives additional benefits above and beyond traditional Platinum?  Personally I think so.  The revenue generated from such a traveler would warrant some additional benefits.  Now we can raise the question as to whether or not this person is a “true Super VIP” – did they attain this status through promotions?  When you reach this level I dont think it matters – the majority of your nights would have to be paid.

The problem that I see (based on my research for the loyalty article) is that hotel chains do nothing to reward the “Super VIP” customer.  Once you attain the top tier status, there is no additional incentive to continue to stay.  There is a possibility that with these promotions, the “true VIPs” might stay the minimum number of nights to retain their status and spend additional nights at other chains to build status elsewhere.   I would expect this to be the case especially if they perceive that their current benefits have been diminished.  On the other forum I mentioned, there have been several posts from those who had already attained the top tier status asking if they should try to start building status at other hotel chains. 

In some cases the VIP benefits are enough to keep a customer loyal to one chain, but would a “Super VIP” tier do more to encourage those who stay an insane number of nights to stay at one chain? 

So my questions to you:

If you were to stay 200 nights in hotels in a given year such that you could earn top tier status at multiple chains:

   How would having a “Super VIP” tier impact your decision to stay with one chain?  Would you be    more likely to stick with one chain?  Or would this not impact your decision?

   What minimum nights would you expect for this Super tier?

   What additional benefits would you like to see for this Super tier?

I am looking forward to your feedback…….TravelPrincess