Members Are Getting Suspended From the SPG Program. Here's Why.
It looks like Starwood Preferred Guest has gotten tired of travelers taking advantage of delays in new hotel openings. A batch of emails went out this week to suspect members, suspending these members' SPG accounts until the member acknowledged the warning. Here's what SPG says the members are guilty of and how you can avoid similar scrutiny.
The Hack
As anyone who's dealt with building construction likely knows all too well, delays happen. And the hotel industry isn't immune to this problem. With how costly it is to run a hotel, owners and managers want to start making money on the property as soon as it opens. So, hotels will take reservations for new properties far in advance of the expected opening date to draw bookings and hopefully have a full hotel on opening day.
When construction delays occur, these hotels send out emails to those booked informing them of the delay and offering alternative dates or hotels. Sometimes these hotels will offer compensation... and sometimes travelers will demand compensation for the delay.
And, that's where the trouble comes in: travel hackers intentionally book hotel properties under construction counting on delays and the compensation they entail. If the hotel is looking like it will open on time, they simply cancel their hotel reservation. No risk and a potential for compensation.
Now, SPG is Fighting Back
It seems a batch of emails went out this week to serial offenders. TPG got its hands on a version that was sent to a couple of SPG members from "SPG® Member Account Integrity." In the emails, members have been warned about two specific actions related to delayed hotel openings:
Request compensation for delayed hotel opening
While our hotels will absolutely consider compensating any guest for genuine inconveniences or issues they determine they are responsible for, a pattern is developing which increases our concern as to the authenticity of some of these reservations.
Please understand we have placed your account on an alert list and are monitoring all pre-opening reservations at SPG® participating hotels.
This part seems pretty straightforward. SPG is sick of members making speculative bookings at new hotels and either requesting compensation for a delay or canceling the reservation. And now, SPG is warning members that they are watching these "pre-opening reservations" for this type of compensation gaming.
The next part isn't as straightforward and has been causing some head scratching from members that have gotten the email:
Confirm reservations for grand opening dates at SPG® participating hotels with an invalid guarantee method
While we greatly appreciate genuine interest in experiencing any Marriott property, there have been reports of invalid guarantee methods being used for rooms reserved at hotels that have announced their grand opening date. This is of great concern to us and the hotels as some of these reservations are either canceled late or not at all leaving the hotels with no recourse for recovering the lost revenue as the reserved rooms sit empty on opening day. This message serves as a reminder that any reservation confirmed with a credit card that will not authorize the forfeiture amount is subject to cancelation at any time and without notice. Hotels have been advised to preauthorize the late cancel penalty amount as soon as the reservations show active in their systems and to cancel any booking where the credit card declines.
It seems that a number of members have been booking hotel grand openings using an invalid payment type (wrong credit card number, expiration date, security code) to avoid incurring cancellation fees in the case the hotel does open on time. This warning seems to have been included in all warning emails — whether or not the member was actively engaged in this practice.
But, this message also serves as a heads-up to everyone who's booking a hotel pre-opening. It looks like SPG hotels will now be pre-authorizing the amount of the cancellation penalty from the time of booking potentially up until the date of the hotel opening. Especially for luxury hotels, this could be a substantial amount to be held on your credit card. So, make sure that you're using a card with a high enough credit limit to cover the hold.
Bottom Line
SPG is cracking down on members that are trying to game the system. If you aren't doing so, you shouldn't have anything to worry about — but be aware that SPG is watching these hotel openings closely. You might get caught up in this crackdown if you book a new hotel and either request compensation for a construction delay or cancel the stay shortly before the hotel opens. As long as you aren't trying to game the system, SPG should be understanding. But, just prepare for the possibility of additional scrutiny.
H/T: One Mile At A Time
Image by Westend61 via Getty Images
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
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- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.