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Loews Looks to Capitalize on Global Demand

Platinum members of Loews’ YouFirst loyalty program will receive a free Global Entry membership, allowing expedited clearance for pre-approved, low-risk international travelers.
CoStar News contributor
September 25, 2012 | 4:29 P.M.

NEW YORK—Loews Hotels & Resorts became the first hospitality company to partner with the Department of Homeland Security’s Trusted Traveler Network to expedite travel to and within the United States.

Loews executives said during a news conference Monday that similar initiatives by other hotel brands are expected, which would boost travel and tourism and hotel demand.

Flanked by Janet Napolitano, secretary of the DHA, and David Aguilar, commissioner of Customs and Border Protection, Loews Chairman Jonathan Tisch announced a program where Loews will absorb the $100 Global Entry application fee for platinum level members of its YouFirst loyalty program. Global Entry is a program that allows expedited clearance for pre-approved, low-risk international travelers arriving in the U.S.

Using an automated kiosk, travelers scan their passports and fingerprints, answer the customs declaration using the kiosk touch screen and proceed with a receipt to exit; the process takes a minute. It also automatically qualifies travelers for PreCheck, another Trusted Traveler program that speeds members through Transportation Security Administration’s screening at domestic airports.

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Loews Hotels announces a public-private partnership with the Department of Homeland Security. From left to right: Paul Whetsell, Loews; Janet Napolitano, DHS; Jonathan Tisch, Loews; and David Aguilar, U.S. Customs and Border Protection. Credit: Loews Hotels & Resorts.

Paul Whetsell, Loews CEO, said YouFirst loyalty members received an email Monday with the one-time offer, which will expire in 60 days.

While other hotel companies might soon follow Loews with similar programs, Whetsell said: “To be the first hotel brand to offer this service demonstrated that we understand the needs of travelers, especially those who travel frequently for business.”

Tisch said he hoped to get to the point where “associations that meet at Loews get their people into these two programs because it will make it easier to attend meetings and events.”

“This collaboration is a public-private partnership,” Tisch said. “Travel and tourism has been critical to the national economy and that has been recognized by the federal government, which has set a goal of 100 million visitors to the U.S. by 2021. Secretary Napolitano knows that travel means business and that a trip starts when the traveler leaves home. They have to endure heavy traffic on the road and long lines at the airport. Trusted Traveler is a smart, efficient system that expedites travel and will make travel easier and be good for our industry.” 

Napolitano said the DHS “takes seriously our commitment to travelers, to facilitating lawful travel.”

“We are taking a risk-based approach to this,” she said. “By making it easier for travelers about who we have information we can focus more on those travelers who we know less about.”

Napolitano said with Global Entry, 75% of members enter the country in less than five minutes; it’s available at 30 airports with plans to expand. PreCheck is available at 25 airports, she said.

According to Aguilar, the $100 fee is good for five years. It enables travelers to provide biographical information, which is followed by a background check and a face to face interview; approval comes within two to five weeks.

As a self-described “road warrior,” Whetsell said he was first in line to get a Global Entry card.  He said when he talks to customers about Global Entry, their response is “Wow—how do I get that?”

Whetsell said the program will be modified after the initiative targeted at Platinum YouFirst members, but details have not yet been firmed up. He said Loews will eventually expand the program in some form to all YouFirst members. Global Entry fees could be part of any negotiations with corporate customers as Loews seeks to extend membership in that program, he said.

Aguilar said the government wants to partner with as many travel companies as it can.

“We are proud to be first, but our industry likes to work together so we look forward to others joining us,” Tisch said.