August 28, 2017 View in browser
Details on West Elm Hotels' loyalty program are finally starting to come together as the hotel chain prepares for launch next year.

The news came from David Bowd, one of the three founders behind DDK hotels, the group that is under contract to ultimately manage the West Elm chain. In an interview with Barbara Bohn in Hotels magazine, Dowd revealed that Williams-Sonoma, the parent company of West Elm, plans to establish a cross-network loyalty scheme.

"Williams-Sonoma is launching their loyalty program later this year. And when the hotels launch, they will be part of that loyalty program… It will be inclusive within the entire Williams-Sonoma loyalty base.

"What I think is very exciting and interesting is the ability to stay in a hotel and use those rewards towards a home good or a mixer in Williams-Sonoma, or a sofa in West Elm. It will be something that’s not out there right now because of the nature of the retail space of Williams-Sonoma."

It's not exactly clear what Dowd is referring to in terms of Williams-Sonoma's upcoming loyalty program. Williams-Sonoma brands already have a loyalty program called The Key, though it's possible that system could be retooled or scrapped altogether. At publication, Williams-Sonoma's team declined to confirm any details of the final program or even if The Key would remain in place.

What's clear, however, is that the group plans to tie West Elm's hotel loyalty program to the Williams-Sonoma network at large. If this works, it would be one of the only loyalty programs to successfully combine a hospitality loyalty program with a brick-and-mortar extension.

The Key currently offers members three percent credit back on any purchase across the Williams-Sonoma network, including at Pottery Barn, West Elm and Mark and Graham. If that percentage return were extended to hotel stays, travelers could potentially earn $9–$12 of store credit by staying in a $300–$400 hotel room each night.

Logically, creating an incentive for Williams-Sonoma and West Elm store purchases is also good business. West Elm hotels by design would take advantage of the brand's aesthetic and even some of the store's direct furniture when appointing properties. If visitors like the style, it makes sense to facilitate a transaction.

Some hotels already do this. Westin Hotels, which make much ado about the Heavenly mattresses installed in each room, sells the bedding separately through a dedicated store. Williams-Sonoma may just take that to the next level by selling the hardware and providing an incentive to buy it.

If the model works, it may also extend to other lifestyle stores that are experimenting with hotel chains. Earlier this summer, Muji announced plans to start its own hotel chain while Restoration Hardware is also in the works. Perhaps soon, we'll all be able to earn credit toward trendy and collegiate-inspired casualwear by staying at the Abercrombie & Fitch hotels.
This Is Not a Freakin’ Trade Conference: Year Four
Skift Global Forum is less than one month away. Today, Skift CEO Rafat Ali gives you an inside look at how our Forums got their start and shares his insight into why our upcoming event is unlike any other.
Learn More
SKIFT STORIES AND MORE EXPERT INSIGHT
Avianca Hopes a Stronger Partnership With United Will Help It Dominate Latin America
Latin America’s airline industry is moving toward having just two dominant players serving the region and the world. Avianca Holdings SA says it can be one of these, boosted by its alliance with United Continental Holdings Inc. and a merger with a Brazilian airline.

Alaska Airlines Will Finally Add Speedy Wi-Fi on All of Its Big Jets
Fast Wi-Fi is finally coming to all Alaska Airlines and Virgin America planes, though passengers will have to wait almost three years before they’ll be guaranteed they can stream content from services like Netflix, Hulu, and HBO Go at 30,000 feet.

Delta Air Lines Will Take Some Customer Service Calls via Video Chat
Delta Air Lines will handle some customer service calls via video chat under a pilot program announced Tuesday. It’s happening at Ronald Reagan Washington National Airport, which is quickly becoming the carrier’s laboratory for new ideas.

The Points Guy: Review of Classified, United’s Exclusive Invite-Only Restaurant at Newark Terminal C
Classified is an invite-only establishment — if United’s given you the nod, you can log in and make a reservation; if you don’t have an invitation, you’ll be prompted to join a waitlist.

One Mile at a Time: Surprise, Surprise: Air Berlin Topbonus Files for Insolvency
A week ago Air Berlin filed for insolvency, after Etihad withdrew their financial support. Air Berlin has a spun-off frequent flyer program, and unfortunately that program isn’t in much better shape. As of a few days ago, you can no longer earn or redeem miles with Air Berlin’s topbonus program. Even their co-brand partners are suspending mileage earning, so that their co-branded credit card no longer awards miles.

Pizza in Motion: American Airlines Changes Its Basic Economy Restrictions, for the Better
Basic Economy fares have spread among American, Delta and United Airlines faster than weeds do in my backyard. These fares represent a more complex form of a price increase to customers. Delta was the first to roll these fares out. United wasn’t far behind. American mostly mimicked Delta and United, though they allowed some elite earning on Basic Economy fares. However, they explicitly said that in the case of travel disruption, you’ll be at the back of the line for finding a new flight.
Share on Twitter Share on Facebook Share on Linked In Send via Email

For Gmail users: If you are using the tabbed inbox, Skift emails may be pushed to the 'Promotions' tab. To get updates from Skift direct to your primary inbox, drag and drop this email to that tab.

You received this email because you are subscribed to Business of Loyalty Newsletter from Skift.