Marriott and United to offer reciprocal elite perks

• High-status loyalty program members with United or Marriott will receive matching status
• Perks include free breakfast%2C lounge access at hotels%3B free checked bags%2C early boarding on flights
• Loyalty programs are expanding benefits beyond free nights and flights to keep loyal customers

Marriott and United will announce today a partnership that will give their most loyal customers reciprocal VIP perks in their hotels and on flights.

The new "RewardsPlus" program, which begins today, will give Marriott Rewards Platinum Elite members, who spend 75 nights a year at Marriott hotels, Premier Silver status in United's MileagePlus program, an elite tier on United. Conversely, those in United's elite tiers above Silver—Global Services, Premier 1K, Premier Platinum and Premier Gold—will receive Marriott Rewards Gold Elite status, the second-highest tier in Marriott's program that requires 50 night a year.

Travelers who link their accounts will have until Jan. 31, 2014, to use their benefits. As long as they keep their travel up and meet eligibility requirements for their particular tier on the original partner, Marriott and United will renew their reciprocal status each year.

The move combines the world's largest airline with one of its biggest hotel chains in a bid to lure the most coveted frequent travelers at a time when traditional loyalty programs that just reward points are not necessarily making customers loyal.

A Deloitte study of 4,000 travelers released earlier this year found that when choosing hotels, travelers looked at price, free parking, comfort and location. Loyalty programs ranked near the bottom of factors that drew them to a hotel.

United has 90 million members in its MileagePlus program while Marriott has about 43 million. Both companies declined to disclose how many of those have elite status.

"It's really a very interesting combination that is going to be very beneficial for our respective customers," says Tom O'Toole, senior vice president of marketing and loyalty for United.

Airlines and hotels have run joint promotions in the past, but they have typically been temporary and carried many restrictions.

Lately, airlines and hotels have been revamping their programs to grant elite travelers perks rather than just points or miles. Delta and Starwood in March began "Crossover Rewards," a similar program that lets frequent travelers get VIP perks with both companies even if they've got elite status with only one.

"Travelers are increasingly looking for personalized experiences," says Adam Weissenberg, vice chairman and U.S. leader of Deloitte's travel, hospitality and leisure sector. "While clearly some travelers like to accumulate points, and will therefore enjoy having more options to use those points, in general, they just want to feel special."

Once customers link their United and Marriott accounts, this is how the companies hope to make them feel special:

--United customers with at least Gold status who stay in Marriott hotels will be able to get benefits normally awarded to Marriott's Gold customers such as lounge access, free breakfast at brands such as JW Marriott and Renaissance, room upgrades when available, late check-out and free high-speed Internet access.

--Marriott Platinum elite members will be eligible for benefits granted to United Silver members such as complimentary access to Economy Plus seating and upgrades on domestic flights when available, designated ticket counter check-in lines, priority boarding, and a free checked bag.

Non-elite members won't be completely shut out. Starting in August, all rewards members will receive 20% more value when converting Marriott points into United miles and a 10% bonus for United miles when they book Marriott Rewards travel packages. Marriott Rewards members have always been able to convert points into miles but for the first time, MileagePlus Premier members will be able to convert miles into Marriott points.

Ed French, senior vice president of Marriott Rewards, says he expects the program to be a powerful draw that could make frequent travelers shift their allegiances.

"We all have programs. We all offer points. We work hard to make them easy to use and valuable," he says. "But when you're a very frequent traveler, you're also concerned about … what makes your travel easier, more convenient and what makes you more productive on the road."

Weissenberg, however, says that as airlines merge and the industry consolidates, more and more travelers will have elite status.

"It is a Catch-22 situation. On one hand, the airlines want to limit the amount of people that have elite status so those that do will feel special," he says. "But on the other hand, they keep coming up with ways for people to buy, match, get status ... through special credit cards, etc. This dilutes the value of airlines' elite status and may anger their travelers who simply earned status through flying."

O'Toole says he does not believe any benefits will be watered down. "We analyzed that question very, very carefully," he says.

Frequent traveler Meg Fynes, a physician in Annapolis, Md., says she would happily switch her business to companies that link their programs.

"I would definitely go for a program that linked them as long as both were quality," she says. "I like the benefits more—pre-boarding , lounge access, wifi, etc. Free flights and nights seem less important."