An Excellent Product offering from American Express
Written: Jun 19 '03 (Updated Jun 19 '03)
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Pros: Much more beneficial than an American Express charge card with a lower annual fee.
Cons: American Express customer service leaves much to be desired.
The Bottom Line: An excellent product offering from American Express - Read my review to find out why!
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| simplyrish's Full Review: Sheraton Starpoints (American Express) |
The Starwood Preferred Guest Credit Card is an excellent product offering from American Express. In my recent review on Diners Club, the first review I wrote for Epinions, I detailed how I was continuously denied by American Express, and how my experience with Diners Club was nothing but perfect. Shortly thereafter I felt furious that I was denied for a charge card that seemed was quite easy to obtain. I wrote a letter to the Corporate office of American Express in New York. An executive called me immediately upon receipt and stated that my letter had been forwarded to the Vice President.
A few days had passed and then I suddenly received a call from American Express. To my surprise it was from the Assistant to the Vice President, calling from their corporate office. She stated that my Rewards Green Card was approved and I should receive it shortly. I compared the benefits of the Starwood Preferred Guest Credit Card with the American Express Rewards Green card and ultimately decided that the Starwood card is a much superior product. I contacted American Express and they canceled my Rewards Green Card and issued the Starwood card and I couldn't be happier.
Ok, I somewhat feel that I am giving American Express much more credit (no pun intended) than they actually deserve. The real benefits in this card are due to the Starwood Preferred Guest program, as they allow you to transfer points accumulated in the program to 29 airline frequent flyer programs without any fees or surcharges.
Sounds great? - You bet it does. The only problem is that prior to product launch the only way to earn points in the Starwood Preferred Guest (SPG) program was to stay in their chain of hotels or other properties. I do not travel too often so having the option of earning points in the SPG program is very beneficial. You earn 1 SPG point per dollar spent on purchases and 3 SPG points when you stay at any Starwood property.
American Express's own Membership Rewards program allows you to transfer points to only 11 frequent flyer programs. All charge cards, from the Rewards Green Card holder ($65/year) up to the Platinum Card ($395/year) are limited to 11 frequent flyer programs. A side note, you are greatly at a disadvantage with the American Express Rewards Green Card ($65/year) or the Rewards Gold Card ($90) year, as 2 Membership Rewards points = 1 Airline mile. You would have to spend twice as much as the Starwood card to earn the same number of airline miles, and if your airline isn't one of the 11 partners, you would be unable to initiate a points transfer. Sorry.
I know quite a few people Platinum card members that have recently canceled their cards and recently applied for the Starwood Card. According to previous American Express card holders who held the card for many years, the Platinum card is losing it's distinction and the customer service leaves much to be desired. Those I know who upgraded to the Platinum card did not notice any difference in the level of customer service or attention they received. A good friend of mine who carries the Centurion "Black" Card was severely disappointed recently when a merchant refused to accept his card, stating she had never seen it before. Unfortunately this card is kept under wraps so well that not many merchants under than those at high-end locations even know of it's existence.
The drawback with American Express Membership Rewards program is that you can only transfer your Membership Rewards points to a limited number of airline partners - 11 to be exact - and the world's two largest airlines - United Airlines and American Airlines aren't one of them.
I have wondered why their are numerous reviews on American Express Charge Cards - from Green, Gold, and all the way up to the Centurion Black Card, and under 10 reviews for the Starwood Card and I now realize why. The real benefit of this card lies in the Starwood Preferred Guest program, the card does not entail any benefits offered directly by American Express. American Express realizes this and is heavily promoting the Rewards Green and other Reward charge cards, while not shining too much light on their Starwood product. I don't believe they realized the product would generate much interest and it was initially a fee-free product, however due to continued interest and a growing number in new account applications for this card, they started charging an annual fee. I suspect over time the annual fee would be increased.
This is an excellent card because it allows you to accumulate frequent flyer miles in 29 frequent flyer programs. Most credit card issuers partner with airline carriers and each product offering allows you to earn miles solely in the respective carrier's frequent flyer program.
http://www.starwood.com/preferredguest/starpoints/transfer_ff_checkRoc.html
SPG list of airline partners is on the above referenced page. Starwood points accumulated in the program either through American Express card purchases or hotel stays transfer on a mile per point basis for most airlines.
Bank One/First USA offers the a Visa Card that enables you to earn miles in the United Airline Mileage Plus program. Each $1 spent earns 1 mile in the program. The card carriers a $60 annual fee, and if you don't fly at least 25,000 miles in a calendar year, your earning potential is capped at 60,000 miles. Every dollar you spend over $60,000 will not earn miles in the Mileage Plus program. Bank One/First USA is starting to feel the pressure. They are noticing a decline in applications for the United Airlines Mileage Plus Visa Card, their largest product offering. Why do you ask?
The Starwood card allows you to transfer your points to the Mileage Plus program, as well as 28 other airlines. Bank One/First USA's card is only limited United and is capped at 60,000 for non-frequent flyers, while Starwood has no transfer limits, and the American Express Starwood Card carries an annual fee of $30 (compared to $60 with Bank One/First USA).
If you look closely at the Airline transfer chart from Starwood Preferred Guest, you will notice the conversion ratio to United Airlines Mileage Plus is (2) Starpoints for (1) Mileage Plus mile. The conversion ratio used to be 1:1, however the new 2:1 ratio was put into effect on January 1st, 2003. Many suspect that it is due to increased competition with Bank One/First USA and that Bank One/First USA pressured United Airlines into renegotiating terms with Starwood, leaving with an end result of the 2:1 conversion ratio.
What most of you may not know if I didn't tell you now and what isn't stated on the Starwood transfer chart website, is that their is a work around the new 2:1 conversion ratio. According to, William R. Sanders, Specialist, E-Communications Department, at Starwood Hotels & Resorts Worldwide, you are able to add the Direct Deposit option on your account. The points you accumulate in the SPG program will automatically transfer to the United Airlines Mileage Plus program at the 1:1 ratio. There are no fees or service charges to use this service.
Of course, let us not forget that points accumulated with SPG allow you to earn free hotel stays at Starwood properties, as well as free travel. I certainly disagree with previous reviews that state you should only get such cards if you travel often. I joined the British Airways Executive Club program less than two months ago, and I have already accumulated more than 50,000 miles in the program, without flying on British Airways (or their partner airlines) and without even leaving my home in Sunny California. That is more than enough miles for a round-trip ticket from Los Angeles to Hong Kong on Cathay Pacific, one of their partner airlines. They are numerous promotions out there that allow you to earn bonus miles with airlines by signing up for certain credit cards or even updating your email address with the respective company. British Airways recently invited frequent flyers (people who actually fly with them often - unlike myself) to an exclusive Jaguar test drive event, and offered them free food and fine wine, and of course, the option to test drive a Jaguar. Just for showing up, participants received 20,000 bonus miles. 5000 miles short from a free round trip ticket anywhere within the United States. If anyone is interested in how I accumulated those miles, feel free to email me, or perhaps I will save such stories for another review.
Finally, I would like to state that for those who are having problems with American Express and can't seem to reach a resolution, to write the CEO directly. It will be delivered directly to his office - rather than ending up in a PO Box somewhere. Send him a letter via certified mail. I have done this when I was unable to get approved for a card and immediately after I received a call from their corporate office. I have found that this yields much better results if Customer Service is unwilling or unable to resolve any issues or problems you are experiencing.
The address to write to is:
Mr. Kenneth I. Chenault
CEO & President
American Express Corporation
200 Vesey Street
New York, NY 10285-4013
I hope you would this review useful and feel that I did not get off track in my attempt to write a review for the Starwood Credit Card. I attempted to provide additional information to support my opinion in why I find this card beneficial, and why it will be the only American Express card I will use. (Please note that the ratings for customer service reflect the service received by American Express, not Starwood Preferred Guest, which provides good customer service).
Recommended:
Yes
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Epinions.com ID:
simplyrish
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Member: Rishi Mirpuri
Location: Los Angeles, CA
Reviews written: 5
Trusted by: 0 members
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