Caesars selects Starwood over Hilton for rewards program

Friday, April 13, 2001 | 10:44 a.m.

Caesars Palace has rejoined Starwood Hotels & Resorts Worldwide Inc.'s frequent customer program, a little over a year after Starwood sold the Strip resort to Park Place Entertainment Corp.

Caesars has been linked to Starwood's hotel loyalty program for several months now, Park Place spokeswoman Debbie Munch said. This program awards points toward free hotel stays to frequent Starwood hotel customers, with member properties being compensated by Starwood for the free nights.

As first reported by the Wall Street Journal, Caesars is now rolling out a more aggressive link to Starwood in joining the Starwood Preferred Guests program.

Members of Caesars' Emperors Club players program can earn points in the Starwood Preferred Guests program through their casino play, then redeem points for such incentives as vacations, airline tickets or hotel rooms.

Caesars was linked into this program until Starwood sold Caesars World Inc. to Park Place in December 1999. Starwood exited the Las Vegas market last June when it sold the Desert Inn to Steve Wynn.

"After the sale of the D.I., it was clear Starwood had no redemption point in the whole city of Las Vegas," Munch said. "Caesars Palace was always in the top 10 as a favorite redemption destination, often in the top two or three. We saw this as a good business decision ... both for (increasing) free-and-independent travel and group business."

Ironically, Starwood is a big competitor of Hilton Hotels Corp., which spun off Park Place at the end of 1998. Hilton maintains close ties to Park Place -- Hilton's Chief Executive, Stephen Bollenbach, is Park Place's chairman; Park Place Chief Executive Thomas Gallagher was Hilton's general counsel; and Hilton Chairman Barron Hilton is a director and big shareholder in Park Place. All of Park Place's Las Vegas properties, save Caesars, are part of Hilton Honors, that company's frequent customer program.

"(Starwood Preferred customers) had heard of Caesars as part of that program, they were familiar with Caesars, and it was an easy thing to join it," Munch said. "For our other properties, Hilton Honors is a good program."