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Hotelier Marriott International Inc. (MAR - Analyst Report) and American Airlines -- a major U.S. airline owned by AMR Corp. recently formed a pact to bolster their loyalty programs. This strategic alliance will serve members of their respective loyalty programs – Marriott Rewards and American Airlines’ AAdvantage program.

AAdvantage is one of the largest frequent flyer programs while Marriott Rewards helps its members earn and redeem points at 3,700 hotels across 14 distinctive brands around the world.

Per the deal, beginning Jun 17, members will be able to gain and redeem AAdvantage miles points at 14 participating Marriott brands worldwide. Common members will also have the opportunity to convert Marriott Rewards points to AAdvantage miles.

Depending on the property, the members of these loyalty programs can gain 1-2 miles per dollar spent on room tariff and 2 miles per dollar spent on other qualifying transactions.

Loyalty programs have been gaining precedence these days. Emerging from an economic crisis, competition in the industry has been cutthroat and consumers have become price-sensitive. Hence, companies, which mainly cater to leisure travelers and frequent corporate visitors, have been diligently working on every possible option to augment guest satisfaction and stay competitive.

Amid the prevailing environment where travelers spend less enthusiastically and seek incentives for doing so, companies are frequently coming up with such programs to boost sales.

The fact can be validated by another loyalty program deal that took place this month between hotelier Hyatt Hotels Corp. (H - Snapshot Report) and casino-resort operator MGM Resorts International (MGM - Analyst Report). The deal will allow members to redeem Hyatt Gold Passport points at 12 participating MGM Resorts in Las Vegas. Similarly, M life members will win M life Tier Credits during their stay at Hyatt resorts and hotels worldwide.   

Marriott currently carries a Zacks Rank #2 (Buy).

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