Fisherman’s Wharf hotel district, San Francisco

The Bay is two blocks away and Alcatraz can be seen in background

I came across the Radisson online advertisement when reading Gary Leff’s View from the Wing blog today. Last Friday, I mentioned in my post I was searching for this Radisson ad claiming its free nights earning advantages over the other major loyalty programs.I made screenshots of the Radisson calculator pages and then started my analysis of their “Do the Math” hotel loyalty program comparison calculator.

Ironically, I see the Radisson calculator makes the same HHonors “Triple Dip” error as the Inside Flyer calculations for Hilton HHonors. The calculator applies the HHonors elite bonus to the total points earned for Double Dip “Points and Points” earnings option when the elite bonus only applies to base points.

Seeing the Hilton HHonors points discrepancy again in the Radisson calculator output made me doubt my earlier analysis of HHonors and the Inside Flyer charts. I pulled out my HHonors account statements and the way my account statement shows points being earned in my past stays with Points and Points selected is the way I calculated the Points and Points earnings in the previous post.

The math was shown in the previous post so I’ll not repeat it again until the end of this piece.

Instead, I want to look at a real example of a the value of a free night using hotel points compared between programs.

San Francisco’s Fisherman’s Wharf has the distinction of having a hotel from each of the six loyalty programs compared by Radisson with their “Do the Math” points calculator.

A real comparison of similar properties in the same location is possible using the hotels of San Francisco Fisherman’s Wharf. It is possible to compare different brands in the same neighborhood, and the Fisherman’s Wharf hotels are all clustered in about three blocks.

Hotel Loyalty Program Comparison for San Francisco Fisherman’s Wharf Hotels

The factors used for my Loyalty Traveler comparison include:1. Using the “Do the Math” calculator, input 50 nights at $150 night to determine hotel points earned by an elite frequent guest in the hotel loyalty program. These point values are used as the member’s account balance for comparison of free nights an elite member in each loyalty program can redeem for booking the respective loyalty program branded San Francisco Fisherman’s Wharf hotel.

2. Hotel Brand’s loyalty program redemption rate for a free night using points and how many nights can be redeemed at the standard rate. (Marriott PointSavers, HHonors Point Stretchers, and Priority Club PointBreaks may offer lower redmption opportunities at various times and locations during the year, but these will not be considered here.)

3. Published “Best Available Rate” for this Friday, June 13, 2008 as shown on the hotel branded website to compare the actual cost of the lowest priced room available for the six different hotel brands,

4. TripAdvisor popularity ranking. I also looked at the TripAdvisor traveler rating, however, they were all the same value of 3.5 of 5 for all six hotels.

The points available for redemption are based on the Radisson “Do the Math” calculator and 50 nights at $150/night.Radisson Hotel Fisherman’s Wharf (sorry, I’ve never photographed this hotel)
Gold Points Plus Category 4 = 45,000 points or 67,500 Flex rate
225,000 points = 5 free nights if standard award available or 3 free nights on flex award.
Price for 1 night stay on Friday June 13, 2008 = $169

(TripAdvisor #100 of 238 hotels)

Hyatt Fisherman’s Wharf
Gold Passport Category 3 = 12,000 Hyatt points
48,750 points = 4 free nights
Price for 1 night stay on Friday June 13, 2008 = $209

(TripAdvisor #39 of 238 hotels)

Holiday Inn Fisherman’s Wharf
IHG Priority Club = 25,000 points
112,500 = 4 free nights
Price for 1 night stay on Friday June 13, 2008 = $209
(TripAdvisor Popularity #92 of 238 hotels)

Marriott Fisherman’s Wharf

Marriott Rewards Category 6 = 30,000 points
93,750 = 3 free nights
Price for 1 night stay on Friday June 13, 2008 = $219
(TripAdvisor #57 of 238 hotels)

Hilton Fisherman’s Wharf
HHonors Category 6 = 40,000 points
140,625 = 3 free nights and no blackout dates for Gold members
Price for 1 night stay on Friday June 13, 2008 = $225
(TripAdvisor #111 of 238 hotels; TripAdvisor Traveler Rating 3.5 of 5)

Sheraton Fisherman’s Wharf
Starwood Preferred Guest Category 4 = 10,000 Starpoints,

but, if Cash and Points available a free night is only 4,000 points and $60.
22,500 points = 2 free nights on points or

Cash & Points 5 free nights for $300 and 20,000 points.
Price for 1 night stay on Friday June 13, 2008 = $233 or

Cash & Points is available for 4,000 points and $60.

(TripAdvisor #117 of 238 hotels; TripAdvisor Traveler Rating 3.5 of 5)

The Do the Math calculator may not be all it portends to be, however, their statement that Radisson GoldPoints earns free nights faster than other programs seems conditionally accurate. If the Radisson Fisherman’s Wharf required a flex award then the programs are all fairly comparable. The price at $40 less than the other chain’s hotels is certainly a value compared to the other major brands.

Personally, I favor the Cash and Points award option with Starwood Preferred Guest.Here is the “Do the Math” calculator issue explained:

I question the accuracy of the Hilton HHonors points calculation for 50 nights at $150 night earning 140,625 Hilton HHonors points.

This is how the calculator functions:
50 x $150 = $7,500
Hilton HHonors Points and Points preference gives 10 base points/$1 US. $7,500 x 10 = 75,000 HHonors points.

Points bonus of 5 points/$1 for $7,500 = 37,500 bonus points.

HHonors Double Dip Points and Points total = 112,500 points.

50 nights = Gold elite status in HHonors and earns a 25% bonus.
112,500 x 25% = 28,125 points.

HHonors Gold member with 50 nights and $7,500 eligible spending earns 140,625 Hilton HHonors points.

I think there is a calculation error in that the HHonors program rules for elite member bonus points applies only to base points and not the 5 points/$1 bonus points given when the member selects a Points and Points earning preference for Double Dip.

The calculation should be:
HHonors Gold elite member with 50 nights at $150/night = $7,500 in points-eligible hotel spending and Points and Points earning preference for Double Dip.

$7,500 x 10 base points/$1 = 75,000 base points
$7,500 x 5 bonus points (points and Points) = 37,500 bonus points
25% Gold elite bonus on base points = 75,000 x .25 = 18,750 elite bonus points

Total HHonors points earned by Gold elite member for 50 nights at $150 night = 131,250 HHonors points.

I do not think the calculator is programmed correctly for Hilton HHonors earnings.

Hilton Auckland, New Zealand

Stephen Colbert might ask, “Hilton HHonors hotel loyalty program – Great or Greatest?

I have loads of respect for the crew at Inside Flyer. Without Randy Petersen and FlyerTalk, I’d probably still be a fully employed school teacher taking lots of vacations and getting less value out of my travel expenditures . But now it is time for this loyalty program graduate to challenge my teachers at the House of Miles. I question some of the calculations from Inside Flyer’s recently published Hotel Loyalty Program Comparison Tables.

Back in February when I was in Colorado for a few days without internet access, I made a comparative analysis of earnings for a Hilton HHonors member who chooses each of the different earning options of Points & Points, Points and Variable Miles, or Points and Fixed Miles. I don’t think I ever published my findings on my blog.

I am revisiting this topic in conjunction with the Inside Flyer Hotel loyalty program comparison chart published in the June 2008 issue that I mentioned in last Friday’s blog post.

I noticed errors in the Hilton HHonors portion of the report and considering the findings of Inside Flyer’s comparison that Hilton provides incredible value with their Double Dip program, I feel I need to report what I see as errors in the published charts of the Inside Flyer report.

Since the charts simply show numerical data without any reference to how the numbers were calculated, I have undertaken the exercise of taking a closer look at the Hilton HHonors data and independently constructing the numerical data to maximize points and miles from the given variables of spending per year and the number of hotel nights used for the Inside Flyer report.

Without more data I can’t determine exactly how InsideFlyer came up with some of their numbers, but I do see some patterns that appear to have been due to incorrectly calculating HHonors “Double Dip” points earnings.

These are the numbers for HHonors points and miles as I calculated them:

Low-spending traveler: 19 nights and $2,052 in points-eligible hotel charges

HHonors Points and Points = 35,910 HHonors Points; InsideFlyer calculated 38,475 points.

HHonors Points and Fixed Miles = 25,650 HHonors Points and 9,500 frequent flyer miles (assuming 19 stays and 500 miles earned per HHonors stay).

Total Miles if Points and Fixed Miles and all HHonors points exchanged for miles =

11,200 US Airways; or

11,500 if Alaska, Continental, Delta, Northwest, or United; or

12,500 miles if American, Midwest, or Hawaiian. Most other airlines will be 11,500 or 12,500 miles total.

Inside Flyer calculated 14,000 miles earned.

Moderate-spending traveler: 38 nights and $5,928 in points-eligible hotel charges

HHonors Points and Points = Loyalty Traveler calculates 118,560 HHonors Points; InsideFlyer calculated 133,380 points.

HHonors Points and Fixed Miles = 88,920 HHonors Points and 19,000 frequent flyer miles (assuming 38 stays and 500 miles earned per HHonors stay).

Total Miles if Points and Miles and all HHonors points exchanged for miles =

25,800 US Airways; or

27,000 if Alaska, Continental, Delta, Northwest, or United; or

31,000 miles if American, Midwest, or Hawaiian.

Most other airlines will be 27,000 or 31,000 miles total.

Inside Flyer calculated 38,500 miles earned.

High-spending traveler: 76 nights and $19,532 in points-eligible hotel charges

HHonors Points and Points = Loyalty Traveler calculates 390,640 HHonors Points; InsideFlyer originally calculated 439,470 points, but the figure was changed sometime between Friday and today to 390,640.

(Did someone act on my email to InsideFlyer? But only that one figure was changed and the accompanying narrative was not altered along with the points.)

HHonors Points and Fixed Miles = 292,980 HHonors Points and 38,000 frequent flyer miles (assuming 76 stays and 500 miles earned per HHonors stay).

Total Miles if Points and Fixed Miles and all HHonors points exchanged for miles =

62,650 US Airways miles; or

67,000 miles if Alaska, Continental, Delta, Northwest, or United; or

81,500 miles if American, Midwest, or Hawaiian.

Most other airlines will be 67,000 or 81,500 miles total.

Inside Flyer calculated 68,500 miles earned.

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The Double Dip Issue

HHonors is the primary program for this analysis since the Double Dip earning preferences appeared to be the root of the major errors I see in the charts. The problem in calculations results from incorrectly applying HHonors elite member bonuses to the Points and Points Double Dip earnings preference.

The Inside Flyer tables base the hotel points and miles earnings on the frequent guest member holding an elite status level from the beginning of the year. This means that the scenario assumes a HHonors frequent guest starts the year with an elite level membership (say Gold or Diamond) and maintains that level throughout the year with regard to calculating points earned.

The accumulated earnings of points and miles will be lower if the member starts hotel stays with no or lower status and attains a higher status during the course of the year.

HHonors “Double Dip”

HHonors allows members to select their preference for earning HHonors points or airline miles and there are three ways for a member to collect HHonors points and miles.

1. Points and Points
This option provides 10 HHonors base points per $1 and a bonus of 5 points/$1 for a total of 15 points per dollar.
HHonors points earned are 15 points/$1.00 US in eligible hotel spending.

2. HHonors and Variable Miles (Earn 1 mile per $1 US) or

3. HHonors Points and Fixed Miles (Earn 500 miles per stay, except 100 miles per stay at Hampton Inn and Homewood Suites hotel brands)

HHonors Gold Elite

HHonors Gold elite membership is earned after 16 stays or 36 nights. Hotel stays as a Gold elite member receive the benefit of a 25% bonus on base points earned.

BY THE NUMBERS

HHonors Points Earned per stay for the Low-Spending Traveler using a Points and Points preference for “Double Dip”

1,080 HHonors base points are earned for a $108 stay.
Points and Points bonus on base points: 50% = 540 HHonors points
Gold elite bonus 25% on base points only: 1,080 x 0.25 = 270 HHonors points
HHonors points earned per $108 stay as Gold elite = 1,890 HHonors points

Inside Flyer makes the assumption the member is starting at an elite level equivalent to 19 stays which is HHonors Gold.
The calculation for HHonors points earned over the course of a year simply becomes 19 nights x 1,890 points/night = 35,910 HHonors points.
1,890 per stay x 19 stays = 35,910 HHonors points (Loyalty traveler calculation)

Inside Flyer shows 38,475 HHonors points earned.

I believe Inside Flyer calculated per night earnings in this way:
$108/night
10 base points per $1 = 1,080 HHonors base points
Points and Points option = 540 HHonors points
Points and Points earning = 1,620 HHonors points
1,620 points x 25% Gold elite bonus = 405 points (incorrect calculation to apply the 25% elite bonus to the Points and Points 50% bonus on base points; the 25% elite bonus should be 270 points.)
2,025 HHonors points earned per $108 night hotel stay

2,025 HHonors points x 19 nights = 38,475 HHonors points.

The difference in my numbers and the number in the Inside Flyer chart is the calculation error of applying the HHonors elite bonus to the total HHonors Points and Points earnings. The HHonors Gold elite 25% bonus points applies only to the base points portion of the Points and Points Double Dip selection for HHonors earnings.

Double Dip with HHonors Points and Miles
Inside Flyer shows the low-spend frequent guest with 19 nights could have earned 14,000 frequent flyer miles.

How was this calculated?

Hilton HHonors has two selections for hotel stay earnings with the option of earning airline miles in addition to HHonors points.

HHonors and Variable Miles (Earn 1 mile per $1 US) or
HHonors Points and Fixed Miles (Earn 500 miles per stay, except 100 miles per stay at Hampton Inn and Homewood Suites hotel brands)

HHonors and Variable Miles provide the HHonors member with 1 airline mile per $1 spent in eligible hotel charges. Inside Flyer uses $108 as the average daily rate (room and incidental charges like food). The HHonors member selecting Variable miles will only earn 108 miles per stay.

The other Double Dip selection option for miles is HHonors points and Fixed Miles which offers 500 miles per stay, except for 100 miles per stay at the HHonors brands of Hampton Inn and Homewood Suites.

Assume 19 one-night stays in the low-spend traveler profile and total annual spending $2,052.
HHonors and Variable Miles = 2,052 frequent flyer miles
HHonors Points and Fixed Miles with 19 stays = 9,500 frequent flyer miles.

So how does Inside Flyer come up with 14,000 miles earned?

Remember the selection is HHonors Points and Miles and the HHonors Gold elite frequent guest still earns the base points for $2,052 in spending and elite bonus points.

$2,052 x 10 base points/$1 US = 20,520 points.
25% HHonors Gold Elite bonus = 5,130 points.

The HHonors low-spending frequent guest earns 25,650 HHonors points in addition to the 9,500 frequent flyer miles when selecting HHonors Points and Miles.

This is enough HHonors points for a free night Category 3 hotel reward. HHonors PointStretcher reward for a Category 6 hotel is only 24,000 points and can easily be a $400 value when used for a free hotel night.

So, how did Inside Flyer come up wth 14,000 miles earned?

A feature of HHonors is the ability to exchange HHonors points into nearly 40 different airline frequent flyer miles currencies. 8 airlines provide an exchange rate of 10,000 HHonors points convert into 1,500 airline miles. American Airlines is in this category.

23 of the 37 airline frequent flyer programs participating in HHonors points exchange for miles use the rate of 10,000 HHonors points = 1,000 miles. Airlines in this group include most of the major US carriers and large international airlines: Alaska, British Airways, Continental, Delta, Flying Blue (KLM/Air France), Lufthansa (and Miles and More airlines), Northwest, and United.
There are 5 airlines with individual exchange rates. 10,000 HHonors points exchanges into just 850 US Airways miles.

HHonors points to miles exchanges must be made in 10,000 point blocks. 20,000 points earned by the low-spending HHonors Gold elite member can be converted into 1,700 US Airways miles. Add this to the 9,500 miles earned from 19 stays with a Double Dip preference of HHonors Points and Fixed Miles the member ends up with 11,200 US Airways Dividend miles. A bit short of the 14,000 Inside Flyer shows.

The low-spend traveler would earn 2,000 frequent flyer miles from the 20,000 HHonors points earned and exchanged into airline miles with AS, CO, DL, NW, or UA.
The low-spend traveler earns 11,500 miles total with the HHonors Points and Miles earnings selection and exchanging earned HHonors points into miles.

American Airlines, Hawaiian, and Midwest have the best exchange rate for US carriers at 1,500 miles awarded for 10,000 HHonors points. Virgin Atlantic, South African, Mexicana, Gulf Air, and Qantas also offer this exchange rate.

A preference for American AAdvantage miles will provide the HHonors Gold member having 19 stays with 3,000 miles from HHonors points exchange and 9,500 miles from stays for a total of 12,500 American Airlines AAdvantage miles. This is still shy of the 14,000 reported by Inside Flyer in their table.

How did Inside Flyer calculate the numbers to reach 14,000 miles earned?
Here is my guess.

It goes back to the problem of applying the HHonors Gold elite bonus points to the total Points and Points earnings.

There are only 3 options for earnings with Hilton HHonors. Inside Flyer stated the calculations are based on a person selecting Points and Points earnings. It looks to me like the HHonors miles earned was calculated by using 500 miles earned per stay x 19 stays = 9,500 miles earned. Then, the points earned were converted to miles on the basis of 38,475 points earned.

HHonors exchanges must be done in blocks of 10,000 HHonors points. In the case of earning 38,475 points, the HHonors member can exchange 30,000 points for airline miles. If the selection is American Airlines the member will receive 9,500 AAdvantage miles for 19 stays and can also earn another 4,500 AAdvantage miles after an exchange of 30,000 HHonors points. This adds up to 14,000 miles as shown in Inside Flyer’s table.

14,000 total miles earned looks to be an earning preference of “Points and Points and Miles.” Double Dip with HHonors doesn’t work like that. Inside Flyer appears to have used the HHonors Triple Dip in their table calculations.

HHonors would be incredible if the earnings were that good.

The problem is a person selecting HHonors Points and Fixed Miles earns 9,500 airline miles from the 19 stays, but then only earns HHonors Base Points for $2,052 in spending for 20,520 HHonors points and a 25% Gold elite bonus for a total of 25,650 HHonors points.

The member exchanging points for miles is trading a free hotel night at 25,000 points for 3,000 miles at best. This loyalty traveler would redeem the HHonors points for a hotel room and just buy the airline miles or better yet find a better way for getting 3,000 miles than burning 20,000 HHonors points.

Based on $2,052 and 19 stays the Gold elite member earns with various US airlines I calculate, that rather than 14,000 miles earned, the total miles earned is:
12,500 miles with American Airlines, Midwest Airlines
11,500 miles with Alaska, Continental, Delta, Northwest, or United
11,200 miles with US Airways

Moderate-Spending Traveler – HHonors Diamond elite member
(HHonors Diamond elite membership requires 28 hotel stays in 12 months).

$5,928 eligible for HHonors base points earnings.
38 nights at $156 per night

Inside Flyer reports: 133,380 total HHonors points earned or 38,500 miles

I believe this was calculated as per night earnings in this way:
$156/night
10 base points per $1 = 1,560 HHonors base points
Points and Points bonus points option of 50% base points = 780 HHonors points
Points and Points earning = 2,340 HHonors points
2,340 points x 50% Diamond elite bonus = 1,170 points
3,510 HHonors points earned per $156 night hotel stay
3,510 HHonors points x 38 stays = 133,380 HHonors points.

Loyalty Traveler’s calculation for HHonors Points and HHonors Points for 38 stays and $5,928.
10 base points per $1 = 1,560 HHonors base points
Points and Points bonus points option of 50% base points = 780 HHonors points
Points and Points earning = 2,340 HHonors points
1,560 points x 50% Diamond elite bonus = 780 points
3,120 HHonors points earned per $156 night hotel stay

3,120 HHonors points x 38 stays = 118,560 HHonors points and nearly 15,000 points less than the 133,380 HHonors points earned as Inside Flyer reports for this scenario.

HHonors Points and Miles as Moderate-Spending Traveler
Inside Flyer reports 38,500 airline frequent flyer miles could have been earned.

The HHonors Diamond member will benefit from selecting HHonors Points and Fixed Miles to get 500 miles per stay rather than 156 miles per stay with HHonors Points and Variable Miles.
Assume 38 one-night stays to maximize the miles earned for 38 stays x 500 miles = 19,000 miles. This is less than half the miles Inside Flyer calculates. It looks like Inside Flyer calculated the other 19,500 miles earned from exchanging 130,000 HHonors points to airline miles at the rate of 1,500 miles per 10,000 points.

13 x 1,500 miles = 19,500 miles earned from exchanging Hilton HHonors points to airline miles.

This is the Inside Flyer Triple Dip that earns 38,500 airline miles.

Loyalty Traveler Calculations for Moderate-Spend Traveler
Assume 38 one-night stays and HHonors Diamond elite membership.

HHonors Diamond member who has selected HHonors Points and Fixed Miles earns $5,928 x 10 base points = 59,280 HHonors base points and 19,000 miles. The Diamond member 50% elite bonus on base points adds another 29,640 HHonors elite bonus points.

HHonors Diamond member earns 88,920 HHonors points and 19,000 airline miles.

Since exchanges must be made in batches of 10,000 points the member will only be able to exchange 80,000 points for 12,000 American Airline or Midwest miles; or 8,000 miles with Alaska, Continental, Delta, Northwest, or United; and only 6,800 miles with US Airways.

Total miles earned ranges from 31,000 for American Airlines AAdvantage miles; 27,000 miles with Alaska, Continental, Delta, Northwest, or United; and only 25,800 US Airways Dividend miles. This is significantly less miles than the 38,500 miles earned shown in the Inside Flyer table.

High-Spending Traveler
Assume 76 nights, Diamond elite membership, and $19,532 spending

And finally the high-spend traveler. The data in this table changed sometime between my initial reading of the report and the chart as shown today on the website.

Last Friday, the total points earned showed as 439,470 HHonors points for a person staying 76 hotel nights with an average daily rate of $257 and $19,532 in annual spending. When I looked today the number in the chart has been changed to 390,640 HHonors points. On both days the chart shows the number of airline miles earned as 66,500 miles.

One-night stays are not necessary to consider for elite status in this scenario for the person with 76 hotel nights because the criteria for HHonors Diamond elite status has been met via all three qualifying standards:
Hotel stays (28 stays)
Hotel Nights (60 nights)
Hotel Spending (100,000 base points = $10,000 eligible spending)

Calculation to get 439,470 HHonors points as originally reported in the Inside Flyer comparison, given the variables.

10 base points per $1 for $257 hotel folio = 2,570 HHonors base points
Points and Points bonus points option of 50% base points = 1,285 HHonors points
Points and Points earning = 3,855 HHonors points
3,855 points x 50% Diamond elite bonus = 1927.5 points (incorrectly applies elite bonus to Points and Points total rather just base points)
5,782.5 HHonors points earned per $257 night hotel stay
X 76 one-night hotel stays = 439,470 HHonors points

Calculation to get 390,640 HHonors points given the variables.
10 base points per $1 for $257 hotel folio = 2,570 HHonors base points
Points and Points bonus points option of 50% base points = 1,285 HHonors points
Points and Points earning = 3,855 HHonors points
2,570 points x 50% Diamond elite bonus = 1,285 points (correct calculation)
5,140 HHonors points earned per $257 night hotel stay
X 76 one-night hotel stays = 390,640 HHonors points. (corrected total as shown in report Tuesday, June 10, 2008).

Points and Miles for High-Spending Traveler
Stays are important to maximize earnings using HHonors Points and Fixed Miles. Assume 76 one-night stays for 76 x 500 miles = 38,000 frequent flyer miles from hotel stays.

The Points earned with the HHonors Points and Miles preference is significantly less than 390,640 points.

HHonors Points Exchange to Frequent Flyer Miles
$19,532 in annual spending earns 195,320 base points and with a 50% Diamond bonus of 97,660 points = 292,980 HHonors points. 290,000 points can be exchanged for airline miles.

Earning Miles with American AAdvantage
29 (10,000 HHonors points) x 1,500 American AAdvantage miles = 43,500 miles
38,000 miles from 76 stays and 43,500 miles from HHonors points to airline miles exchange = 81,500 American Airlines AAdvantage miles earned.

My calculation of 81,500 miles earned for the high-spending traveler is 15,000 miles more than the 66,500 miles shown on the Inside Flyer chart. I don’t know why the Inside Flyer chart is so much lower since the other two scenarios for low-spending and moderate-spending travelers seem to use the pattern of one-night stays to calculate miles earned. In real travel, I think it would be a rare frequent guest with a profile of 76 one-night stays.

Earning Miles with AS, CO, DL, NW, or UA
29 x 1,000 miles = 29,000 miles for Alaska, Continental, Delta, Northwest, or United. Add these exchange miles (29,000) to stay miles (38,000) and total is 67,000 United miles for 76 one-night stays. This is close to the 66,500 mile calculation of Inside Flyer.

Earning Miles with US Airways
290,000 HHonors points exchanges into 29 x 850 US Airways miles = 24,650 US Dividend miles
24,650 Dividend miles (exchanged) + 38,000 Dividend miles (on 76 stays) = 62,650 US Airways Dividend miles

Conclusion

Inside Flyer’s conclusion is Hilton HHonors had the highest value in terms of points and miles earned.

81,500 miles earned from Hilton brand hotel stays is sufficient for an international business class ticket using miles (or is it anymore?). Better yet, in my opinion, 390,640 HHonors points the high spender earns is enough for 13 nights using HHonors points at a Hilton Category 6 hotel.
Think 13 nights x $400/night saved = $5,200 rebate through future free stays on $20,000 in hotel spending. That is a good deal.

But, is it the best deal for a hotel loyalty program?

I think comparable value can be found with the other programs. 25% value added is just the basic known value of hotel loyalty through these HHonors calculations.

I repeatedly show in Hotels and Points blog posts how to get 50 to 100% added value on your hotel spending. The scenarios examined do not even consider promotion offers which, in my experience, can be expected to be at least an extra 1,000 HHonors points per hotel stay.
Programs like Starwood and Hyatt with different scales for their hotel properties will typically offer the frequent guest a promotional opportunity to earn an additional 1,000 points per hotel stay. The bonus points in these two programs are a significant proportion needed for the lower category hotel rooms. A Starwood free night room redemption starts at 2,000 points for Category 1 hotels and Hyatt at 5,000 points for Category 1 hotels compared to HHonors 10,000 points for Category 1 hotels.

Flexibility and opportunity await the loyalty traveler who learns to maximize the benefits of hotel loyalty programs.

Ric’s Note: The past week I have posted overviews of Wyndham Rewards, Choice Privileges, and Best Western Gold Crown Club (Randy Petersen reports the rumor that a name change to Best Western Rewards is in the works). I was actually writing these in the spirit of budget travel. Then, I come across a FlyerTalk thread mentioning hotels in Europe are available at 50% off standard redemption rates for Radisson. I’m reminded of a Radisson Gold Points advertisement I kept seeing in May on FlyerTalk making a claim to being the easiest hotel program to earn free nights or some such bold statement (sorry, I don’t remember the ad wording and I didn’t ever get a screen shot. Send me an email if you know the wording of the Radisson ad I am taking about).

These blog posts are not comprehensive analyses of the hotel loyalty programs. I have written quick basic informational overviews and report some of my findings as I navigated the hotel loyalty program and corporate websites for a particular chain. The primary issue for me as a hotel loyalty program analyst focused on the consumer is user-friendliness and function for both the frequent guest program and the loyalty program and reservations websites.

*****

Radisson Hotels – GoldPoints Plus

The Radisson Hotels and Resorts websites were terrific for ease of navigation and locating relevant information about the loyalty program, points required for a free night, and elite member benefits.

Carlson Hotel Family – 985 hotels worldwide in five hotel brands in 71 countries. The first Radisson hotel was opened in 1909 in Minneapolis, Minnesota. Radisson Hotels and Resorts is one of the hotel brands of Carlson Hotels Worldwide. Headquarters: Minneapolis, Minnesota.

Radisson Hotels and Resorts (USA) – mid-scale to upscale lodging segment with about 400 full-service hotels in the flagship brand in 64 countries
Radisson SAS Hotels and Resorts (international) upscale lodging segment
Radisson Edwardian Hotels (UK and London) – 13 hotels in upscale lodging segment

Regent Hotels and Resorts (luxury lodging segment) – 9 hotels with several more in construction. These luxury hotels were part of Four Seasons when bought by Carlson in 1997.

Park Plaza – (mid-scale to upscale lodging sector) about 40 hotels and many international locations

Country Inns and Suites – (mid-scale lodging sector) over 450 hotels in North America, Europe, Latin America and India

Park Inn – (mid-scale lodging sector) about 100 hotels worldwide

 

Earning GoldPoints

20 Gold Points per $1 US or Euro in eligible hotel spending at Radisson Hotels and Resorts, Regent Hotels, and Park Plaza hotels.

15 Gold Points per $1 US or Euro in eligible hotel spending at Country Inns and Suites and Park Inn hotels.

500 bonus points for booking online. (Most major hotel programs eliminated online booking bonuses years ago.)

The points earnings are biased against Euro currency. This is certainly not as good a deal for the hotel stay purchases made in Europe when the Euro is worth 50% more than the dollar. How are points calculated for a European member staying in the Middle East on a currency different from USD or EUR?

 

Redeeming Points for Free Nights

The GoldPoints website offers every hotel member redemption rate for a free night using GoldPoints on a single webpage.

There are 6 tiers of hotels for free night reward redemption starting at 15,000 GoldPoints for a Tier 1 free night and rising to 90,000 GoldPoints for a free night at a Tier 6 hotel (Gold Elite members earn 50% bonus points or 30 points/$1 so 90,000 points for a free night at a Tier 6 hotel is equivalent to $3,000 in eligible hotel spending).

While the points earning rate for GoldPoints is double the rate for Marriott or IHG Priority Club and even exceeds Hilton HHonors earnings using Points and Points preference (15 points per $1), the redemption level for a free night is more than double the number of points for any of the comparable major hotel loyalty programs of Marriott, Hilton, IHG, or Hyatt. Only SPG seems to look worse for earning redeemable nights (3 Starpoints/$1 earned for SPG Platinum compared to 30 GoldPoints/$1 earned) at the high end hotels (30,000 Starpoints per free night at Starwood Preferred Guest Category 7 hotel = $10,000 spending).

With hotel programs the mid-tier redemption category hotels tend to be better values as few lowest-tier hotels exist in most hotel loyalty programs. And high-tier properties are either resorts or extremely high demand locations where a member will often find better value by paying cash than redeeming points.

 

Free Nights Using GoldPoints

GoldPoints free night awards cost 10% less points for each additional night after the first night. (Except for Tier 4 hotels which are only a 9% discount on points due to rounding in GoldPoints favor rather than the frequent guest. )

Tier 1 hotels = 15,000 points for the first night, and 13,500 points for each additional night.
Tier 2 = 25,000 points for the first night, and 22,500 points for each additional night.
Tier 3 = 30,000 points for the first night, and 27,000 points for each additional night.
Tier 4 = 45,000 points for the first night, and 41,000 points for each additional night.
(Should be 40,500 points if the 10% reduction pattern were followed in all hotel tiers).
Tier 5 = 60,000 points for the first night, and 54,000 points for each additional night.
Tier 6 = 90,000 points for the first night, and 81,000 points for each additional night.

 

Flexible rewards are available for periods with no standard hotel free night award availability at a cost of 50% more for the first night.

The flex night discount for extended stays with additional nights using points is not a simple percentage reduction like standard awards.

Tier 1 = 22,500 points for the first night, and 19,500 points for each additional night.
(13% discount for additional nights.)
Tier 2 = 37,500 points for the first night, and 33,000 points for each additional night.
(12% discount for additional nights.)
Tier 3 = 45,000 points for the first night, and 39,000 points for each additional night.
(13% discount for additional nights.)
Tier 4 = 67,500 points for the first night, and 60,000 points for each additional night.
(11% discount for additional nights.)
Tier 5 = 90,000 points for the first night, and 78,750 points for each additional night.
(12.5% discount for additional nights.)
Tier 6 = 135,000 points for the first night, and 121,500 points for each additional night.
(10% discount for additional nights.)

The lowest discount on points needed for additional free hotel nights is on the highest tier hotels. In contrast, Marriott Rewards offers their greatest free nights discount on top-tier, multi-night stays and it amount to about 40% savings in points for a 7-night stay in a Category 7 hotel using points.

Sample Hotels in each free night using points redemption tier:
Tier 1:
Knoxville, Tennessee – Country Inn and Suites, Knoxville East;
Park Inn, Milpitas, California;
Park Plaza, Toronto Airport;
Radisson Hotel and Suites, Guatemala City, Guatemala ( I stayed at this hotel during the LatinPass mileage run back in 2000 and the hotel guest services representative picked me up at the airport and rode the taxi back to the hotel with me. He was a young man who grew up in the Mission District of San Francisco. The hotel was large and seemed rather luxurious to me for the price I paid.)

Tier 2:
Park Inn, Mainz, Germany
Park Inn, Greenmarket Square, Cape Town, South Africa

Tier 3:
Radisson Hotel, LAX, Los Angeles, California
Country Inn and Suites, Holyoke, Massachusetts

Tier 4:
Radisson SAS Seaside Hotel, Helsinki, Finland
Radisson Ambassador Plaza Hotel, San Juan, Puerto Rico

Tier 5:
Radisson SAS Marina, Dubai, United Arab Emirates
Radisson Plaza Resort, Tahiti, French Polynesia
Radisson Edwardian Vanderbilt Hotel, London, UK

Tier 6:
Radisson Lexington Hotel, New York, New York
Radisson Edwardian Mountbatten Hotel, London, UK
Regent Bordeaux, Bordeaux, France

GoldPoints Plus Elite Membership:

Silver elite for 15 nights or 10 stays in a calendar year.
Benefits include:
25% points bonus (25 points per $1 at Radisson, Park Plaza, and Regent)
Late check-out
Best available room in category booked
10% off weekend rates in Europe, Asia, and Middle East

Gold elite for 35 nights or 20 stays in a calendar year.
Benefits include:
50% points bonus (30 points per $1 at Radisson, Park Plaza, and Regent)
Early check-in and Late check-out
Best available room in category booked
10% off weekend rates in Europe, Asia, and Middle East
Flex night redemption at base award night rate.
Weekend Extend – get 2-for-1 nights or 4-for-2 nights on weekends

The flex night redemption at base award rate actually sounds like the member has the ability to use points essentially without blackouts. This is a huge benefit of top elite status with GoldPoints Plus. The qualification standard of 35 nights or 20 stays for top elite status is a lower standard than the other major upscale programs of Hyatt (25 stays/50 nights), Starwood (25 stays/50 nights), Hilton (28 stays/60 nights), IHG Priority Club (50 nights), and Marriott (75 nights).

Overall: GoldPoints Plus has made great strides in developing a traveler-friendly hotel loyalty program that rewards frequent guests with the opportunity for free hotel nights comparably with the other major hotel loyalty programs.

Current GoldPoints Promotion for 100,000 Bonus Points

Summer 2008 Radisson Hotels and Resorts Points To Go Promotion, June 1- August 31, 2008
Earn up to 100,000 GoldPoints this summer with stays at any of the five Carlson Hotel brands of Radisson, Regent, Park Plaza, Park Inn, and Country Inn and Suites.

5 nights = 5,000 bonus GoldPoints
10 nights = 10,000 bonus GoldPoints
15 nights = 25,000 bonus GoldPoints
20 nights = 50,000 bonus GoldPoints
25 nights = 100,000 bonus GoldPoints

Nights do not need to be consecutive. Nights, not stays, are counted for promotion.

By the numbers:
Park Inn, Milpitas, California room rate check for Sat., June 7 shows $65/night. Assume I could find rates throughout the summer in similar range at various hotels.
Extrapolate to 25 nights over summer = $1,625 for 25 hotel nights.

A frequent guest GoldPoints Plus member earns 15 points per $1 (Park Inn) for 15 nights and 18.75 points per $1 for 10 nights after earning Silver elite membership. (15 points x $65 x 15 nights + 18.75 points x $65 x 10 nights) = 14,625 + 12,187 = 26,812 points.

100,000 points bonus + 26, 812 points as a new member completing promotion over summer 2008 = 126,812 points and possibly Gold elite status if stays are planned to earn elite status along with bonus points for Points to Go promotion. Additional points (500 points per reservation) can be earned through online booking of hotel nights. Points earned are enough for 8 free nights at a Tier 1 hotel ($500-800 value at many locations) or for two free nights using points at a Category 4 hotel (potentially a $400 to $600 value at many locations).

Sheraton Libertador Presidential Suite, Buenos Aires, Argentina

The good life as a low-spender traveler in hotel loyalty programs.
$163/night paid rate and complimentary upgrade to this $500/night room in June 2007.

InsideFlyer has a free cover story report on a comparison of hotel loyalty programs.
The content of this first section of the hotel loyalty program comparisons is a simple analysis of the points earned based on fixed monetary spending and the cost for free hotel nights using points. Next month there is to be a continuation of hotel loyalty program comparisons using actual properties in locations. (I was planning to use this strategy to compare Radisson hotel free night redemption to some other chains in a couple of cities in Europe and came across the InsideFlyer article while doing Radisson research this morning.)

If choosing the best program were that simple I wouldn’t bother with the Hotels and Points blog.
The variables analyzed in this first report are static such as base points/$, elite bonus points based on status, and standard redemption of free nights.

The reason I started Hotels and Points is to focus my readers’ attention on the variety of high value promotions which regularly change the points and free nights hotel loyalty program earning and redemption dynamics. Offers regularly change the earning value for hotel stays with promotions like Hyatt’s Faster Free Nights, Starwood’s Cash and Points and 50% off redemption level for a free night special offer for Platinum members the past two years. Priority Club PointBreaks free nights for 5,000 points was mentioned, but not Marriott’s PointSavers or Hilton HHonors PointStretchers.

The InsideFlyer charts are a useful overview of the major hotel loyalty programs for US residents (although all these chains have international properties, there are no non-US-based hotel chains in comparison). Readers of Hotels and Points will find the $2,000 per year hotel low-spend traveler can expect a whole lot of value with a strategic hotel loyalty program plan for the year. Don’t let the InsideFlyer report fool you into thinking you need to be spending $5,000 to $10,000 a year to have a high elite hotel lifestyle. A leisure traveler can pay for hotels when the earnings are good and the rates are low and redeem for hotels when the prices are high with a significant return on investment of $2,000 to $3,000 per year in hotel loyalty.

And as a Hilton Diamond member for several years, I found the earning and redemption rates for my leisurely travel lifestyle to be more lucrative with other programs whose promotions outpace the offers I was provided by Hilton HHonors as a member with high elite status.

Conrad Bangkok

Conrad Hotels, the luxury brand in the Hilton HHonors family, has a special offer of 5,000 HHonors bonus points for a 2-night or more stay at 6 Asia region locations:

Conrad Bali

Conrad Bangkok

Conrad Centennial Singapore

Conrad Hong Kong

Conrad Maldives Rangali Island

Conrad Tokyo

Promotion Dates for stays from April 15, 2008 to September 29, 2008.

Booking Plan Code = H5

Offer based on Best Available Rate.

Conrad Bangkok, room

Terms and Conditions for 5,000 bonus points:

Requires a 2-night stay and booking online using the Best Available Rate or

asking for Plan Code H5 when booking by phone with Hilton Reservations.

Bonus points do not count toward elite qualification.

Conrad Bangkok, swimmimg pool

Best Western Carmel Bay View, Carmel, California
36,000 points for a free night using points (the highest hotel award category)

Best Western Carmel Bay View Hotel

Best Western Hotels: Brand Overview

Best Western Hotels are a franchise operation organizing 4,200+ hotels in the USA and international make Best Western the largest single hotel brand in the world. (Hotel brand geography: USA 2,200 hotels, Canada 180 hotels, and nearly 2,000 hotels in 80 other countries).

More than 1000 Best Western hotels in the USA and Canada receive a 3-diamond rating. Over 90% of the Best Western properties in Europe receive a 3-star or 4-star rating.

All BW hotels in USA, Canada, and the Caribbean offer free high-speed internet access.

Best Western Gold Crown Club

Gold Crown Club is Best Western’s hotel loyalty program and with hotels in about 80 countries, the Best Western program is truly international in scope.

Earning Points:
Earn 10 points/$1US spent on hotel charges (excluding taxes).
Points do not expire under current program rules.

Gold Crown Club Elite Status:
Gold Elite membership for 10+ nights in a calendar year
Benefits include:
10% point bonus on hotel stays
Purchase points for award redemption (1,000 points/$10)
Exclusive special offers

Platinum Elite for 15+ nights in a calendar year

Benefits include:
15% point bonus on hotel stays
Purchase points for award redemption (1,000 points/$10)
Exclusive special offers
Complimentary room upgrades and early check-in/late check-out privileges

Diamond Elite for 30+ nights in a calendar year

Benefits include:
30% point bonus on hotel stays
Purchase points for award redemption (1,000 points/$10)
Exclusive special offers
Complimentary room upgrades and early check-in/late check-out privileges

Hotel Points Redemption:
Gold Crown Club points may be used for a variety of travel-related and travel-unrelated redemption choices.

Hotel Free Nights are available based on 8 categories of hotel redemption levels ranging from 8,000 points for one free night to 36,000 points for one free hotel night at a Best Western.

Best Western Gold Crown Club member must be signed in to account to see the option of “Search by Points” in the “Find a Hotel” tab. The search results will then show the points level for a free night for specific hotels.

Best Western Carmel Bay View Inn is at the 36,000 points level for a free night. This is the highest category level in the program. Wow.

Carmel Best Western TownHouse Lodge
Free Night Using Points = 32,000

A drawback of points redemption is the need for a hotel category voucher, although these can be printed via your online account. The Best Western Carmel Townhouse Lodge takes a 32,000 points voucher for a free night. If you decided you wanted to change to a free night at the Best Western Carmel Bay View the voucher needed is a 36,000 point free night. An interesting feature of the Gold Crown Club program is the ability to redeem points for 4,000 points “level adjustment vouchers”. A person with a 32,000 points voucher and a 4,000 points level adjustment voucher can pay for the 36,000 points free night at the Carmel Bay View using the two combined vouchers.

Best Western’s Preferred AAA Guest Rewards Program

AAA members have the option of joining a subcategory of Gold Crown Club with the immediate beneft of 10% points bonus on hotel stays, in addition to the discounted AAA group room rates.

Ric’s Best Western hotel notes: I stayed in a wonderful Best Western hotel in the Latin Quarter, Paris a few years back. The room was tiny, but clean and on a relatively quiet street at a cost under $60/night.

I recall in the LatinPass 1,000,000 miles run in May 2000 getting unexpectedly stranded in Guayaquil, Ecuador for a night (fortunately after I had completed the 10th LatinPass airlines segment for the 1,000,000 frequent flyer miles bonus). There was a Hilton near the GYE airport for about $200/night. I talked with two young girls working the tourist information booth at the airport (they didn’t even look 18) and they booked me into the Best Western in downtown Guayaquil for $30/night. The room was basic and clean, looked out to the urban center shopping district street from the 3rd floor, and provided a safe environment to lay my head. I think I did use a safety precaution I read from a Robert Young Pelton article about propping a chair against the door jam to deter unexpected openings. The hotel had a restaurant connected to the lobby and I ate a steak dinner and drank beers for about $3. And it remains the only hotel where I was escorted 15 feet to the door of a taxi and protected by a big armed, armed man. I fet like I had ambassador treatment from my Best Western hosts.

In the spirit of budget travel planning for summer 2008, I have written an overview of the Choice Privileges hotel loyalty program.

Choice Hotels – Overview

More than 5,500 hotel members and more than 450,000 rooms in Choice Privileges makes this program a benefit for travelers in smaller towns and cities across the USA. The program even offers international hotel properties in 40 countries and territories. USA hotel members are around 4,500 with about 355,000 rooms. Nearly 1,000 hotels are currently in development with additional room capacity approaching another 200,000 rooms for the USA in the coming few years.

Choice Hotels also have about 45,000 rooms in Europe and over 400 hotel members. There are over 330 hotels and 25,000 rooms in Asia/Pacific with Australia and New Zealand well represented. Choice hotels have a small market share in Latin America. There are only about 100 Choice hotel members in the western hemisphere outside the USA and Canada. There is one Choice hotel in the Middle East and none in Africa. Choice Privileges enrollment passed 5,000,000 in 2006.

There are 10 hotel brands in the Choice Hotels family [brand hotel data from (2007 report)].

1. Comfort Inn – Choice Hotels flagship brand, USA 1,434 hotels ; international 532 hotels; 2007 Average room rate in USA = $79.68 in 2007

2. Comfort Suites – USA 481 hotels; international 10 hotels. This brand will grow rapidly with almost 300 hotels currently in development. Room rate data combined with above.

3. Quality Inn – USA 828 hotels; international 382 hotels
Average room rate in USA = $70.30 in 2007

4. Sleep Inn – USA 346 hotels; international 24 hotels
Average room rate in USA = $69.67 in 2007

5. Clarion – USA 167 hotels; international 115 hotels
Average room rate in USA = $80.86 in 2007

6. Cambria Suites – 9 hotels in USA; brand opened in 2007 as an upscale hotel brand and rooms are larger with plasma TVs, refrigerator, CD stereo, microwave, upscale bath, and a sofa-bed, in addition to main bed. There are 60 more Cambria Suites in development.
No Average room rate data for 2007. (Online check for Boise, ID on June 6, 2008 showed regular rate of $79-89 for one night.)

7. MainStay Suites – USA 30 hotels
Average room rate in USA = $70.04 in 2007

8. Suburban Extended Stay – USA 54 hotels
Average room rate in USA = $40.13 in 2007

9. EconoLodge – USA 825 hotels; international 45 hotels
Average room rate in USA = $54.40 in 2007

10. Rodeway Inn – USA 276 hotels; international 6 hotels; budget category hotel brand
Average room rate in USA = $53.24 in 2007

International properties are concentrated in Canada (273 hotels), Australia (224 hotels), France (103 hotels), UK (86 hotels), Norway (69 hotels), Sweden (60 hotels), Brazil (48 hotels), Germany (42 hotels), Japan (42 hotels), New Zealand (30 hotels) and a scattering of hotels in nearly 30 other countries. [Note: Choice Privileges has a rule prohibiting points for stays in Norway, Sweden, and some other smaller Baltic countries].

Choice Privileges Hotel Loyalty Program

Choice Privileges enrollment passed 5,000,000 in 2006.

Earn Points:
Two-tier system for hotel brands

10 points/$1 US for hotel room rate excluding tax, and for other incidental room charges like restaurant, etc. at Clarion, Comfort Inn, Comfort Suites, Quality Inn, Cambria Suites, and Sleep Inn hotels “in the U.S., Canada, Europe (excluding Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden), Mexico and the Caribbean.”

[Important to Note: Choice Privileges hotel points are only awarded for stays in the USA, Canada, Mexico, Caribbean, and parts of Europe. Choice Privileges has terms prohibiting points for stays in Norway, Sweden, and some other smaller Baltic countries in Europe. No points credit for Asia/Pacific hotel stays.]

5 points/$1 US for hotel room rate excluding tax, and for other incidental room charges like restaurant, etc. at MainStay Suites, Suburban Extended Stay hotels, EconoLodge, and Rodeway Inn locations in the USA and Canada.

Choice Privileges guest member may receive hotel points credit for up to two rooms per night, however, elite stay credit and elite bonus points credit will only be granted for one room per night.

Redeem Points:

9 tiers of hotels for free night using points redemptions and reservations using points may not be made more than 30 days in advance of stay. Elite member guests have the benefit of advance bookings (60 days for elite platinum (25+ nights/year) or 90 days for elite diamond (40+ nights/year).

Most hotels I checked for California, France, and New York City fell in the 16,000 to 25,000 range. I didn’t have time to locate a sample hotel in each tier.

6,000 points -
8,000 points -
10,000 points -
12,000 points -
16,000 points – some Monterey area hotels, Quality Hotel Carlton Beaulieu, French Riviera
20,000 points – most Monterey area hotels
25,000 points – Carmel-by-the-Sea Clarion and Comfort Inn Midtown NYC, Clarion Park Ave NYC
30,000 points
35,000 points

Purchase points:
A Choice Privilege member can purchase up to 10,000 hotel points per calendar year.

Points Expiration:
Choice Privileges hotel points expire December 31, two years after year deposited into account.

Frequent Guest Elite Membership:

Choice Privileges has three tiers of elite membership for frequent guests.

10+ nights/year = Gold and offers a 10% elite bonus on hotel points and special member offers.

25+ nights/year = Platinum and offers 25% elite bonus on hotel points, and advance free night reservations using hotel points for up to 60 days in advance of stay.

40+ nights/year = Diamond and offers 40% elite bonus on hotel points, and advance free night reservations using hotel points for up to 90 days in advance of stay and the possibility of complimentary upgrades where available.

Choice Privileges Summer 2008 Promotions

Choice Privileges has a summer gas card promotion offer after 3 stays with Choice Privileges hotel members between June 1 – August 14, 2008. The promotion actually is for 16,000 Choice Privileges points which can then be redeemed for a $50 gas card, however, the points will likely have much higher value if redeemed for a free hotel night instead.

The fine print of this promotion excludes 4 of the hotel brands from being qualifying stays for the 16,000 points after 3 stays. Qualifying stays for this promotion are only for the hotel brands of Comfort Inn, Comfort Suites, Quality Inn, Sleep Inn, Cambria Suites, and Clarion.

The four hotel brands of MainStay Suites, EconoLodge, Rodeway Inn, and Suburban Extended Stay hotels do not count as qualifying stays for the Gas Card promotion. These hotel brands have a separate promotion offering 1,000 bonus points per stay for the same promotional period.

The value of a $50 gas card might get you home from your hotel stay. For travelers, here is a better idea. There are 8 Choice Privileges member hotels on the French Riviera. A free night at the Quality Hotel Carlton Beaulieu, Beaulieu-sur-Mer is only 16,000 points this summer.

A budget value vacation this summer at Choice Hotels brands in the USA can bring an equivalent value in future hotel savings. Three paid stays in the USA can earn free nights at Choice Privileges hotels in Europe to easily save $200US/night on the regular hotel rates priced in Euros.

related story to yesterday’s post:

Marriott CEO Says International Markets Still Strong but U.S. Weaker than Expected

A staycation in Carmel isn’t necessarily an adverse idea

Back in January I blogged about the impact of the economy on travel “Money for Nothing (but my MTV)” from a personal point of view as a consumer. The stock markets were shuddering from the finance markets liquidity crisis. And this was all before the huge spike in gasoline prices for the American consumer. Times are generally looking harder for the leisure traveler.

I have to wonder if the Cornell Center for Hospitality Research advice for hotels to maintain an operating model of higher prices, lower occupancy will hold as the American consumer is squeezed by household inflation. The strategy of high prices, lower occupancy as a hotel business model is based on the findings that hotels which maintained their rates in the year following the September 11 attacks came out with more profits than hotels that lowered rates to boost occupancy during the travel slump after 9-11 (hotel rates were at record highs at the time of the 9-11attacks).

I believe the travel impact of the post-9-11travel recession was due in large part on fear of travel. There were incredible airline travel deals at the time. Priceline was my good friend for hotels and $60/night central city 4-star hotels in the capitals of Europe. The dollar was strong as a currency and offered high value in foreign exchange for travelers.

Will the game of chicken play out the same for our current travel crisis in 2008 as it did in 2001?

Reality check of the travel environment of 2008:

The Euro caused a general inflation of about 20% overnight in Amsterdam when prices were converted from Dutch Guilders to Euros for this American traveler. The dollar is worth only about half as much as it was shortly after the Euro became the currency.

Hotel average daily rates in the USA have increased annually at about triple the rate of inflation for the past several years in the USA where there are no currency issues compounding the high rates. Internationally, rates have more than doubled in many countries as the US Dollar has lost 20% to 40% of its value against most international currencies over the past five years.

Air travel has become much more expensive with the rise in fuel and the addition of fuel surcharges to ticket prices. Using 100,000 frequent flyer miles for a premium class award ticket to Europe will now cost as much as a regular miles earning ticket did in late 2001. I was earning nearly 40,000 frequent flier miles for every $400 all-in ticket to Europe in late 2001. And now, in 2008, it can cost $400 in award ticket fees to fly to Europe using frequent flyer miles.

Gasoline prices for driving around the USA have more than doubled since the post-9-11 travel recession. When the cost of taking a 900-mile road trip means a $200 gas expense, the frequency of travel decreases (San Francisco to Los Angeles and back is about 900 miles).

“Staycation” is a term being tossed around frequently these days in the media. Too broke to travel? Stay in town for your vacation. Fortunately, I have regularly used staycations for years as a hotel strategy to maintain high elite status with a hotel loyalty program like Starwood, Hyatt, or Hilton. The staycations are rather enjoyable as San Francisco is my “Staycation” vacation home base.

The only article I have seen showing a rise in USA travel is from American Express regarding travel to Europe. Every other piece of data I have seen shows declining travel for Americans in 2008. TravelPort owns the Galileo global distribution system. GDS reservations are what travel agents use to make bookings and about half of all worldwide travel reservations are made through a GDS. TravelPort reports reservations numbers for 2008 show a 7% decline from the same period for 2007 for travel in the Americas and a 3% decline overall globally. And this is at a time when hotel room supply in the USA is about to increase dramatically as new hotels open over the next two years. The hotel projects took off in the boom years of real estate and will open from 2008 to 2010 in the current economic bust.

The InterContinental Hotels in San Francisco and Monterey may reflect the room rates impact in the coming cycle of new hotel openings. The best available rates are about $100 less than I think they would have been had the hotels opened a year ago.

The hotel travel industry is going to try and ride the crest of the wave. For loyalty travelers it is important that the industry just remember the wave of hotel bookings is created by consumers. With the current stormy economic conditions facing the American consumer, the hotel booking wave might just go flat.