Details: Shangri-La Circle (New Loyalty Program)

A luxury hotel group with over 100 properties around the globe is called Shangri-La. I don't talk much about the hotel because of the limited opportunities with the loyalty program and the heavy focus on Asia.

A major refresh to its loyalty program was revealed in January of 2022. The new program goes live on April 28, 2022. Let's look at all of the details.

Details of Shangri-La’s new loyalty program

The loyalty program is getting a new name, a new rewards structure, and some new elite perks. The new program is intended to be simple and flexible, and to offer more recognition.

“Shangri-La Circle’s new elevated offerings was designed with our members in mind. We listened to their feedback, went back to the drawing board, combed through the knots, and enhanced the features they love.”

While flexibility and simplicity are good on the surface, in reality, Shangri-La is fully moving to dynamic award pricing, which probably isn't great for those looking to maximize value. Let's look at some aspects of the new program.

Shangri-La Circle is no longer “Golden”

The loyalty program is being changed. The program will now be known as the Shangri-La Circle. I appreciate the simple name, but I don't really have strong feelings for it.

Earning points with Shangri-La Circle

You will still earn one point per dollar spent, even if taxes and fees are included. You would earn 1,000 points for a hotel stay of $1,000.

Redeeming points with Shangri-La Circle

The redemption side of the business is going to be the biggest change. Previously free night redemptions followed an award chart with seven categories of hotels, costing anywhere from 1,000 to 20,000 points per night for a standard room.

You would need to spend between $1,000 and $20,000 to get a free night. You could redeem points for vouchers for dining and spa purchases at Shangri-La properties, but that hasn't been the best use of the rewards.

• You could redeem 500 Shangri-La points for a $50 voucher
• You could redeem 1,000 Shangri-La points for a $100 voucher

The loyalty program offered the equivalent of 10% back if you spent 10 cents on each Shangri-La point.

The new program is not a good thing. Award pricing is going to be a full-on dynamic going forward.

• There will no longer be blackout dates, but rather you can redeem points toward any Shangri-La experience at the rate of 15 points per dollar
• In other words, each Shangri-La point will get you ~6.67 cents toward the cost of a hotel stay, or a dining or spa experience
• You can redeem points partly toward the cost of any experience, so you don’t need to have enough points for the entire experience

This is a significant change. Each point can only get you 6.67 cents toward a dining or spa experience, compared to 10 cents previously.

Shangri-La Circle elite status

The new program will have four tiers.

• Shangri-La Circle Gold status
• Shangri-La Circle Jade status
• Shangri-La Circle Diamond status
• Shangri-La Circle Polaris status

With the new program status can be earned based on the number of nights completed or tier points earned, with members getting one tier point per dollar spent. The program is moving towards being revenue based.

You can register for the gold tier and earn free nights, member exclusive offers, mobile check-in and check-out, and more.

The entry-level elite tier requires 20 nights or 6,000 tier points. Incremental perks include daily breakfast, early check-in and late check-out, welcome amenities, room upgrades, bonus points, and more.

The highest published tier requires 50 nights or 15,000 tier points. Incremental perks include executive lounge access, complimentary pressing service, and more.

The group has a new invitation-only elite status. Even when not staying at a hotel, there are perks like executive lounge access, flexible check-in and check-out, complimentary airport meet and greet, and more.

Shangri-La Circle launch offer (for new & existing members)

There will be promotions for both new and existing members to celebrate the launch of the new program. Between April 28 and July 31, 2022.

• Existing members can receive up to 1,500 bonus points for qualifying transactions within the promotion period — this would be unlocked with five or more transactions
• New members can receive 300 bonus points upon their first qualifying transaction, and up to 1,500 bonus points for subsequent transactions, similar to the bonus for existing members

My take on the new Shangri-La Circle program

The loyalty program of Shangri-La has never inspired me. The program was not exciting to me before the changes, and it is not exciting to me now. There are a few general thoughts.

• For those maximizing value, Shangri-La’s loyalty program is becoming roughly one-third less rewarding; previously you could get up to 10 cents per point, and with the new program you can get up to 6.67 cents per point
• On some level you’d almost be better off booking through an online travel agency that offers 10% back toward a future stay, especially if you’re not a Shangri-La regular; in reality the biggest benefit of booking direct is being able to take advantage of additional perks through programs like Virtuoso, Shangri-La Luxury Circle, etc.
• Personally I always find it weird when luxury travel brands try to essentially turn their loyalty program into a revenue-based discount club; I think that’s a great concept for Allegiant’s loyalty program (where consumers are typically highly price sensitive, and offering redemptions with every trip keeps people engaged), but to me it just doesn’t seem as exciting for a luxury hotel group
• My biggest issue with Shangri-La’s loyalty program is how hard it is to engage with the program if you’re not in Asia; there aren’t many ways to earn points with Shangri-La efficiently outside of hotel stays, and many of Shangri-La properties are in countries that still have closed borders

Bottom line

On April 28, 2022, the new Shangri-La Circle program will launch. The biggest change will be how points can be redeemed. Points can be redeemed for virtually any Shangri-La experience. You will no longer be able to redeem points for dining and spa experiences, and there will no longer be a free night award chart.

Shangri-La is following the direction the industry is going, with a focus on flexibility rather than outsized value.

What do you think about the new program?