Marriott, Flipkart joins for loyalty programs; 2: 1 conversion can raise value problems

Mumbai: Marriott International and Flipkart announced a loyalty partnership, which brought together Marriott Bonvoy Points and Flipkart’s Supercoins under a single exchange frame. The alliance enables members of the two programs to earn and save rewards on platforms, and to convert shopping expenses into hotel accommodation and hotel points in online purchases. The partnership links two of the largest ecosystems, Marriott Bonvoy with its 159 hotels across India and a global portfolio of 30 brands, and Flipkart, reaching more than 500 million users nationwide. Together, loyalty bases are almost 700 million members. “It’s not a campaign or a program. It is a first-of-his-kind of loyalty integration worldwide,” said John Tooemey, chief commercial officer, Asia-Pacific (excluding China), Marriott International. “By connecting accounts, members can access the benefits of both platforms. Flipkart users can earn Bonvoy points during shopping, and Marriott customers can set their points for flipping purchases.” Conversion Puzzel in the heart of integration is a two-way exchange: two Bonvoy points convert into one supercoin, and vice versa. It effectively halves the value in the rounds of the round trip. For example, 100 Supercoins become 50 Bonvoy points, but the conversion of back yields is just 25 supercoins. Managers of both companies have acknowledged concerns, but emphasized that most users will turn in one direction based on their goals. “Consumers are used to exchange loyalty programs, provided the relationship is fair, and we believe it is fair,” Toermey said. “A currency becomes more valuable as its utility extends further. The expansion of the reach for Marriott is also a way to go beyond regular travelers and to deepen its presence in smaller towns. Flipkart’s penetration in Tier 2 and Tier 3 cities gives Marriott access to customers who may not travel regularly enough to collect free evenings, but can now build value by connecting the everyday shopping with hotel accommodation. “Rare travelers, who only discuss once or twice a year, can now use their points more meaningfully, even for smaller purchases,” Tooemey said. The partnership is directly direct and extends to Flipkart Travel and Cleartrip. International redemptions will be activated in the coming months. The detection of success in the first year refused to make forecasts on revenue or cross -platform forecasts and to mention the model experimentally. Metrics will include new login, linked accounts and frequency of transfers on platforms. Marriott said India is now its fourth largest market worldwide and “a safe bet” for future growth, with domestic and outgoing tourism expected to drive demand. Flipkart, meanwhile, is working on the integration as part of its vision to build a cross-category rewards ecosystem. Participants such as Taj’s InnerCircle and ITC’s club ITC have strong domestic programs, but Marriott’s managers argue that their lead is in Flipkart’s reach. “They don’t have Flipkart. We do it,” Tooemey said.

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