Hilton HHonors introduced Points & Money rewards in 2011 requiring only 50% points of a standard reward night with a cash copay.  The initial announcement was discussed in my May 9, 2011 post on Hilton HHonors Points & Money Rewards when there were only a few hotels offering the reward.

Hilton HHonors officially launched Points & Money Rewards in late 2011 and the FAQ briefly included a table showing the cash co-pay for each hotel category level. The Hilton Points & Money copay table was removed from the Hilton website within a few hours of my October 3, 2011 post on Hilton HHonors Points & Money Rewards.

The table was replaced by this wording: “The number of points required to redeem Points & Money Rewards varies by room, hotel, and booking date.” Read More…

U.S. Travel Association Daily Getaways offer for Wednesday May 2 is Hilton HHonors points at a rate under $5.00 per 1,000 points. The regular purchase price for HHonors points is $10.00 per 1,000 points through the Hilton website.

Here is a recap of my post last week when the same deal was offered. The only thing I have changed is to add a section on HHonors American Express AXON 4-night reward stays for an even greater discount than HHonors VIP rewards for category 6 and 7 hotels. Read More…

U.S. Travel Association Daily Getaways offer for Wednesday April 25 is Hilton HHonors points at a rate under $5.00 per 1,000 points. The regular purchase price for HHonors points is $10.00 per 1,000 points through the Hilton website. Read More…

Gary Leff spouted off this morning about La Quinta Inns being an unsuitable hotel chain for the way he likes to travel. My god, they don’t even have room service!

And even though he has never slept at a La Quinta Inn, he implies the housekeeping staff does not clean the rooms to the same standard a guest will find at a full-service hotel chain like IHG, Hilton or Hyatt.

Yet, he has no problem being a member of La Quinta Returns loyalty program to collect free points.

Here is my rebuttal for you Gary and a reason to build your account balance beyond 300 points.

Waldorf-Astoria Resorts – here we come with ice coolers.

Here is a Loyalty Traveler lesson in cheap value for travelers who can get by without room service morning coffee for hotel stays at La Quinta Inns & Suites.

Read More…

The fourth article in this series comparing the “MegaChain” hotel loyalty programs of Hilton HHonors, IHG Priority Club and Marriott Rewards is a look at the hotel reward options for each hotel chain. Reward nights using points are one of the two primary incentives of being a hotel loyalty program member. The other incentive is additional complimentary hotel stay benefits received during hotel stays like free internet, complimentary room upgrades, hotel executive lounge access and free breakfast.

Comparing hotel rewards is one of the most technical aspects of hotel loyalty programs. The rate of earning points is different in each hotel loyalty program with Hilton members earning as many as 15 points per dollar for hotel spend while Marriott and IHG Priority Club earn as few as 5 points per dollar for certain hotel brands. Promotions offering bonus points also affect the rate of earning points in each program.

And even if the hotel loyalty member earns 10 points per dollar in each program, then is a 25,000 point hotel reward comparable in each program? How does one compare a Marriott Rewards category 5 reward night (25,000 points), Priority Club Crowne Plaza reward night (25,000 points) and a Hilton HHonors category 3 reward night (25,000 points)?

The logical way to compare hotel rewards across programs is to compare the published rate for the hotel night to the reward night cost in points. The problem is the reward cost is a fixed cost while the room rate fluctuates and might be $150 tonight and $250 tomorrow night for the same 25,000 points free night. The other variable is a 25,000 points hotel reward might save $100 at one Marriott Rewards category 5 hotel and save $250 at a different Marriott hotel.

The bottom line is hotel reward redemption value is dynamic and fluctuates depending on date and hotel. The best a member can do is try to use points in a way that maximizes their redemption value.

Read More…

Book a Points & Money or a Premium Room Reward by January 31, 2012 for a stay by June 30, 2012 and receive a rebate of 30% points. This offer gives members the opportunity for a lower cost hotel stay buying HHonors points and redeeming points for a reward stay rather than pay the published hotel rate.

HHonors new rewards 30% Rebate Promotion offer requires HHonors member registration.

Points & Money Rewards are one of the new reward options Hilton HHonors launched in Q1-2011. The cost of a hotel reward is a fixed cash price and 50% points per night. HHonors category-7 hotels with a standard reward rate of 50,000 points per night are 25,000 points + $85 per night when Points & Money rewards are available. These are capacity controlled rewards and many hotels I checked for places like New York and Paris did not appear to offer any Points & Money rewards during this promotion period through June 30, 2012.

Premium Room Rewards are a great concept for the option to buy any hotel room for HHonors points regardless of the rate. The main disadvantage of this reward is the relatively low value rate of exchange for HHonors points-to-dollars for these rewards. My analysis of dozens of hotels shows a rate around $3 to $6 per 1,000 points is the typical redemption value. This means you will pay 100,000 HHonors points for a room with a published Hilton rate (BAR-Best Available Rate) of $300 to $600. You will typically pay 10,000 points for every $30 in room rate at many hotels using a Premium Room Reward. A good value Premium Room Reward may offer $60 value on every 10,000 points.

Premium Room Rewards do have some good value opportunities at the regular price point. This six month offer for a 30% rebate makes even more Premium Room Reward opportunities – even if you do not have any HHonors points at the moment.

Fess Parker’s DoubleTree Resort by Hilton, Santa Barbara, California

This is a hotel that caught my eye a decade ago, yet I have not stayed overnight here. Fess Parker’s DoubleTree Resort is a beachfront resort in Santa Barbara is Hilton HHonors category 7 at 50,000 points per standard reward night.

Santa Barbara is as far south as I care to drive along the California coast from Monterey. Highway Hell of southern California starts about 25 miles south of Santa Barbara with too many cars and that’s a stress I can go without when wanting to enjoy the beach.

Hilton HHonors Points & Money Reward Availability Feb 2012 - DoubleTree Resort, Santa Barbara

A two night stay February 10-12, 2012, the weekend before Valentine’s Day is 25,000 points + $85 per night. The two night rate after tax is $194.57 + 50,000 points for the HHonors Points & Money reward.

AAA rate = $319 + tax or 25,000 points + $85 for Feb 10-12, 2012.

Doubletree Fess Parker Ranch Resort AAA published rate for these two nights after tax = $719.20.

Points & Money Reward rate for this stay after the 30% rebate is 35,000 points + $195.

HHonors Points & Money redemption value:

$719 published room rate – $195 Points & Money cash

= $524 cash saved for 35,000 points.

This reward stay achieves $15 per 1,000 points in redemption value. That is a really high redemption value for HHonors points which typically fall in the range of $4 to $8 per 1,000 points.

Buy Points at $10 per 1,000 points if you need them for a high value reward stay

Hilton allows a member to buy 40,000 points in a calendar year. This means you can buy 40,000 points in December 2011 if you have not made purchases this year and you can buy another 40,000 points in January 2012.

You pay $400 for 40,000 points.

The DoubleTree Resort Points & Money reward example shows a redemption value of $15 per 1,000 points. You can buy points for $10 per 1,000 points from HHonors.

Another rule of Hilton HHonors is a member can buy the points needed for a reward at the time of booking the reward with no limit. Two nights at Santa Barbara DoubleTree Resort takes $195 and 50,000 points using a Points & Money Reward. You can book this entire stay for $695 buying 50,000 points and the rate is still $24 less than paying the AAA rate for the same room.

And you will get back 15,000 points with the 30% Points & Money Reward rebate in 4 to 6 weeks after the reward stay.

HHonors Premium Room Reward 30% Rebate Analysis

The same DoubleTree Resort Santa Barbara shows the value of a Premium Room reward with the 30% rebate offer.

Premium Room Reward is 63,000 for $360 BAR ocean view room category.

Room rate for a flexible cancellation rate is $406 after tax.

The redemption value for this hotel night is $6.44 per 1,000 points before the 30% rebate. The rebate of 18,900 points makes the net redemption value 44,100 points to save $406.    [update Dec 8 10:05am: the original post incorrectly stated rebate of 13,900 points and $8.27 rebate value.]

HHonors points final redemption value = $9.21 per 1,000 points which is a decent deal for Hilton HHonors points on this Premium Room Reward for the DoubleTree Santa Barbara.

This is a good value for your HHonors points if you already have them, but this redemption rules out the use of buying points at $10 per 1,000 points to redeem for $9.21 value. You might as well pay the published room rate.

There are certainly many hotels with good value redemption opportunities with this HHonors Points & Money and Premium Room Rewards rebate offer. You need to search for them though.

Related posts: Do HHonors Premium Room Rewards Prevent AXON/GLON Rewards at some Hilton Resorts? (Oct 13, 2011)

HHonors Premium Room Reward Analysis and Flexible Dates Search Tool (Oct 10, 2011) – this post shows how to search flexible dates for reward cost and availability.

HHonors Points & Money Rewards Analysis (Oct 3, 2011)

Hilton HHonors introduced three new reward types in a pilot program launch six months ago with Points & Money,  Premium Rooms, and Room Upgrades.

Points & Money Rewards have limited availability at select hotels globally, but a recent interview with Jeff Diskin, Hilton Worldwide VP of Global Customer Marketing in BudgetTravel.com states many more hotels will offer Points & Money rewards from October 1 onward.

My previous post in May 2011 on HHonors Points & Money rewards did not reveal what caught my eye immediately when looking into the relationship between the cash component and points component of Points & Money rewards for this post. There is an easy rule for choosing whether the HHonors Points & Money Reward or the HHonors Standard Reward offers a better value when redeeming HHonors points for hotel stays.

Hilton HHonors Standard Reward Chart (HHonors web link)

Hilton HHonors Standard Reward Chart on October 3, 2011

Waldorf Astoria Collection - WAC (HHonors rewards link)

• 50,000 points Low Season
• 60,000 points High Season
• High and Low seasons vary with each of the 19 WAC properties currently open.
• Grand Wailea Resort Maui, Hawaii (70,000 Low; 80,000 High)
• The Beach House Maldives Resort (50,000 Low; 80,000 High)

All but two WAC properties have the same redemption rates, although high and low season varies by individual property.

October 4, 2011 UPDATE: Within hours of this post appearing on Loyalty Traveler on the morning of October 3 the chart shown below was removed from the HHonors FAQ on Hotel Rewards webpage and replaced with the wording in #11 of the FAQ: “The number of points required to redeem Points & Money Rewards varies by room, hotel, and booking date.”

Points & Money Rewards (Hilton HHonors link to table)

Hilton HHonors Points & Money Reward Table

Hilton HHonors Points & Money Rewards reduce the points price of a standard reward by 50%. The HHonors Category 7 Hotel is reduced from 50,000 points to 25,000 points + $85.

The points saved by paying the cash component provides a fixed value for points redeemed for a Hilton HHonors Points & Money Reward within each HHonors hotel category. Whereas HHonors members using Points & Money Rewards do not actually buy HHonors points in the way Priority Club members buy points when redeeming Points + Cash rewards, the HHonors Points & Money reward option essentially has a similar effect in that the cost to save 1,000 points is much lower for a Points & Money Reward than the only alternative of buying points for a reward at $10 per 1,000 points. Points & Money Rewards allow HHonors members to save points for future redemptions at a far lower level price level of $3.20 to $4.80 per 1,000 points than the $10 per 1,000 points cost to buy more points. Bottom line is your points go farther.

An Example of Why Points & Money are a Great Reward Option

Say I have 30,000 HHonors points and I want a Hilton HHonors category 7 standard reward at 50,000 points. I need to spend $200 to buy the 20,000 points I need in my account to reach 50,000 points for a free Category 7 night.

A category 7 Points & Money Reward night, if available, requires only $85 + 25,000 points. The reward night will cost only $85 rather than $200 to buy points from Hilton as shown above. And I will still have 5,000 HHonors points remaining in my account.

Points & Money Rewards are a great improvement in reward options in this case.

The Value of Cash in HHonors Points & Money Rewards

Since each hotel category has a fixed money component that saves a fixed number of points, there is a rate of cash required per point saved for each category hotel in HHonors Points & Money Rewards. This is not a fixed rate across the different hotel reward categories. The value of points ranges from $3.20 to $4.80 depending on Points & Money hotel reward category.

• Category 2 hotels: $30 ÷ 6,250 points = $4.80 per 1,000 points.
• Category 3 hotels: $40 ÷ 12,500 points = $3.20 per 1,000 points.
• Category 4 hotels: $50 ÷ 15,000 points = $3.33 per 1,000 points.
• Category 5 hotels: $60 ÷ 17,500 points = $3.43 per 1,000 points.
• Category 6 hotels: $70 ÷ 20,000 points = $3.50 per 1,000 points.
• Category 7 hotels: $85 ÷ 25,000 points = $3.40 per 1,000 points.
• Waldorf Astoria (WAC): $100 ÷ 30,000 points = $3.33 per 1,000 points.

Essentially a Points & Money Reward for a Category 7 Hotel Reward is like having the ability to buy HHonors points for $3.40 per 1,000 points compared to the normal purchase price of $10.00 per 1,000 HHonors points when saving 50% points using HHonors Points & Money Rewards.

Points & Money rewards provide an opportunity to redeem points for a reward night when the member does not have sufficient points at a rate far lower than buying points from HHonors. Points & Money Rewards also help HHonors members conserve points for more reward nights since only half the points per reward night are needed when a cash supplement is paid.

Obviously Points & Money Rewards have even more value when used for High Season WAC rewards, but there is little evidence these capacity controlled rewards will be available for High Season Waldorf Astoria Hotel stays.

During low season the value of WAC Points & Money rewards is reduced relative to Category 7 hotels that are also 50,000 points per standard reward night. The Waldorf Astoria Collection hotels require $15 + 5,000 points per night more than category 7 hotels.

 Guide for when to book a Points & Money Reward rather than a Standard Reward

Whenever the room rate is more than twice the cash component of a Points & Money reward, then you will get more value from HHonors points redeeming Points & Money reward nights rather than standard reward nights.

Choose Points & Money Reward over a Standard Reward when the room rate exceeds:

• Category 2 hotels: $60
• Category 3 hotels: $80
• Category 4 hotels: $100
• Category 5 hotels: $120
• Category 6 hotels: $140
• Category 7 hotels: $170
• Waldorf Astoria Collection (WAC): $200

Are Points & Money Rewards always the best deal?

No.

There are instances where Points & Money Reward Nights are not such a great deal. Here are some examples I came across when searching Points & Money Rewards.

A category 7 hotel with a $175 room rate has a reward cost of 50,000 points with a standard reward or $85 + 25,000 points with a Points & Money Reward.

• Standard Reward Redemption Value: $175/50 = $3.50 per 1,000 points.
• Points & Money Reward Redemption Value: $175-$85 =$90.  $90/25 = $3.60 per 1,000 points.

HHonors Points & Money Reward has a higher redemption value than the standard reward, however, $3.60 per 1,000 points is still a low redemption value for HHonors points. I like to see $5.00 per 1,000 HHonors points redemption value, but that is sometimes impractical with HHonors.

Points & Money Reward redemption value is at least $5.00 per 1,000 points  when Hotel Room Rate exceeds:

• Category 2 hotels: $61.25
• Category 3 hotels: $102.50
• Category 4 hotels: $125
• Category 5 hotels: $147.50
• Category 6 hotels: $170
• Category 7 hotels: $210
• Waldorf Astoria Collection (WAC): $250

I prefer $5.00 per 1,000 points redemption rate based on room rate before tax. Places with 15% to 20% tax make the true redemption value of HHonors points closer to $6/1,000 points when tax is added to rate shown above.

Points & Money Rewards vs. PointStretcher Hotel

HHonors Points & Money vs. PointStretcher at DoubleTree Norwalk (Los Angeles)

Searching hotel rates in Los Angeles turned up this example where a PointStretcher Hotel Reward is a far better deal than the Points & Money Reward for that same night. This example shows the Points & Money Reward is not impacted by the availability of PointStretcher dates (the Points & Money rate is still 50% of Standard Reward points (15,000) and not 50% of the PointStretcher points (9,000).

However, a Premium Room Reward points rate is based on the PointStretcher rate for this hotel with a King Junior Suite only 19,849 points compared to 30,000 points standard reward night rate for this category 4 hotel.

HHonors Premium Reward based on PointStretcher rate at DoubleTree Norwalk.

There will be a separate Loyalty Traveler post later this week analyzing Premium Room Rewards.

HHonors Going Global Extended Stay Rewards vs. Points & Money Rewards

HHonors extended stay rewards provide point discounts of 15% to 25% off the standard reward cost.

• 4-night stay = 15% discount
• 5-night stay = 20% discount
• 6-nights or longer = 25% discount

Category 7 hotel reward for 5-nights is reduced 20% in points cost from 250,000 points to 200,000 points with a Going Global reward.

This same reward is 125,000 points + $425 if available with Points & Money Rewards.

In this case the $425 cash component saves 75,000 points. The cost of saving 75,000 points increases from $3.40 per 1,000 points saved on a Category 7 one night stay to $5.66 per 1,000 points saved on this 5-night Points & Money reward. Basically, Points & Money saves points compared to Going Global Rewards, but the cash component is higher per 1,000 HHonors points saved on the reward cost since there is no points or cash discount for multiple nights using Points & Money Rewards.

The savings is not so great for an extended stay reward when using Points & Money rewards, but if you don’t have enough points for a Going Global reward stay, then Points & Money might be the best deal available with the limited points in your account.

Hilton HHonors American Express card members also have the option of AXON rewards for 4-night stays which reduces the savings using Points & Money Rewards even more.

• AXON Reward Category 6: 125,000 points
• AXON Reward Category 7: 145,000 points

Bottom Line: HHonors Points & Money Rewards place lower cost reward nights within reach for more members. These rewards are generally a better value than using Standard Rewards, although members should consider what is an acceptable redemption value for their HHonors points and try to average that value in reward redemptions.

HHonors is an easy program to redeem points at low values. I personally like to save at least $5.00 in hotel rate per 1,000 points redeemed with HHonors rewards.

I probably spent more time in the past couple of days using Hilton’s reservations website than in the previous six months. I am impressed with changes to the reservations site and specifically enjoy the flexible dates function when searching hotels using points. The flexible dates function makes it far easier to see when reward rates are available for HHonors Standard Rewards, Points & Money Rewards, and Premium Room Rewards.

There will be additional posts this week on Loyalty Traveler showing features of the Hilton HHonors website and an analysis of Premium Room Rewards.