If ever there was a huge messaging gap between a press release and the articles it generated, it was Marriott International’s announcement of its merger with Starwood Hotels & Resorts.
The PR Newswire copy started by broadcasting the company’s obvious corporate home run:
“Combined Company Will Have 1.1 Million Rooms in More Than 5,500 Hotels, Spanning the Globe in Over 100 Countries”
“Transaction Offers Substantial Economies of Scale”
“Combined Company Should Deliver Significant Capital Returns to Shareholders”
Marriott International to Acquire Starwood Hotels and Resorts; Will Become World’s Largest Hotel Company (PRNewsFoto/Marriott International, Inc.)
The response of one frequent Starwood customer, as captured in a New York Times article by Josh Barro, had a different tone:
“I dread to think what the merger will do to my platinum-for-life status.”
It would seem from coverage of the deal that Marriott may have forgotten who Starwood appeals to the most: higher end, frequent guests of Westin, Sheraton and W hotel chains, as well as Le Meridien and St. Regis. Starwood treats its most frequent customers to personalized service via travel ambassadors who help with booking needs and arrange for perks based on their client’s preferences.
One of several travel related mergers to be announced this year, the Marriott-Starwood deal also has some concerned about reduced competition in the marketplace. Others say the mergers are necessary to compete with outside factors like an increase in home rental sites.
Regardless of the business motives, customers don’t seem to be reacting positively to the news. Specifically those with elite status are concerned that their loyalty rewards will be devalued in the mix. Those fears may be put to rest soon, as Marriott CEO Arne Sorenson has said he will merge the two loyalty programs – no small feat given the exclusive agreements each has with credit card companies, airlines and the like.
The overarching PR lesson here may be one in basic customer service:
Direct the right message to the right audience. Marriott’s press release loudly touted staggering statistics about the combined new status as the largest hotel company – great for the business community who are watching the overall marketplace. Not so much for the frequent Starwood guest who enjoys the personalized service offered at their hotels.
Soften the blow. Knowing that there are two distinct audiences for this message, Starwood could have paired the announcement with personalized messaging to Starwood clients. Full page ads, or scripted calls from travel ambassadors would have avoided having these valued customers learn of the merger from the mainstream media.
Manage expectations. In what Sorenson has said will be “a long journey” as the two companies merge, ongoing communication with key customer groups will need to be a priority. Frequent Starwood guests are already hitting the blogosphere, drilling down to the most detailed concerns about potential lost services. Rather than feed speculation, Marriott will need to work with Starwood to keep communication channels proactively open.
Often, your message will need to achieve multiple goals with varied audience sectors. That is when our expertise can come in handy, working with you to determine the best fit for the best channels. To determine how to successfully structure your next PR campaign, give us a call at (203) 762-8833. We’re ready to help!
-BML
