Hilton is celebrating the branding of the Tropicana Las Vegas Resort & Casino as a Doubletree by Hilton with a one million points giveaway.

The partnership of the Tropicana and DoubleTree by Hilton brand was created October 2012. The property has been refurbished at a cost of $200 million and a renovation of 1,500 guest rooms.

Tropicana Las Vegas sweepstakes

One Free Million Points Giveaway Entry

January 22, 2013 to April 22, 2013, residents of 50 US and Canada, exc. Quebec can sign up for the one million points giveaway. One free entry is available online.

Another entry is earned with every stay at the Doubletree Tropicana Las Vegas through April 22, 2013.

Hilton HHonors announced increases to the stays, nights and base points elite qualification requirements for HHonors Gold and Diamond membership effective January 1, 2013.

HHonors Gold elite requirements as of January 1, 2013:

• 20 stays, up from 16 stays.
• 40 nights, up from 36 nights.
• 75,000 base points ($7,500 in hotel spend), up from 60,000 base points.

HHonors Diamond elite requirements as of January 1, 2013:

• 30 stays, up from 28 stays.
• 60 nights, no change.
• 120,000 base points ($12,000 in hotel spend), up from 100,000 base points ($10,000).

There are no changes to the credit card qualifications for Gold and Diamond elite with HHonors American Express and Visa cards available with membership and spend thresholds.

Analysis:

This really does not seem to be a major change for HHonors Diamond elite members who normally qualify on stays and nights. The fact that award stays count for elite status makes two additional stays for Diamond not that big a deal, especially with Points & Money awards and the opportunity to pick up cheap Hampton Inn stays in most places around the USA.

The increase to 20 stays from 16 stays for HHonors Gold is quite a bit more expense if you normally qualify for Gold elite on a minimum 16 stays. Hilton HHonors seems to be providing incentive for HHonors Citi Reserve credit card membership for $95 per year with the card benefit of HHonors Gold elite status as long as you are a cardmember.

The real penalty is imposed on HHonors elite members who qualify on hotel spend. Increasing Gold elite from $6,000 in spend to $7,500 to earn 75,000 base points seems unreasonable to me. That increases the average spend from $167 per night to $187.50 per night when comparing the $7,500 spend level to the 40 nights level for Gold qualification. Both stays and spend increased 25% and means an average spend of $375 per stay when comparing the cost of earning Gold elite by spend vs. stays.

Stays, nights and spend are three different ways to earn HHonors elite status. I already viewed the spend requirements as the least favorable way for most leisure travel members to earn status and now they raised that bar even higher. The change is probably not as big a deal for business travelers.

Diamond elite qualification is even more confusing when compared to the threshold for Gold. $12,000 in base spend for 120,000 points is equivalent to $300 per stay at 40 stays. This means a Diamond member averaging $300 per stay on 40 stays qualifies for Diamond by both standards, yet this is an average spend less than the $375 per stay for 20 stays and Gold elite. If HHonors had kept Gold elite at $6,000 spend or 20 stays then this would mean $300 per stay would reach $6,000 after 20 stays and be equivalent to the average spend rate for Diamond elite qualification at 40 stays or $12,000. 

Note that I am only comparing average spend and stays as an analytical exercise. You can qualify for HHonors on spend or stays or nights. I just find it interesting that the changes to Gold elite qualification seem tougher on members who qualify for Gold elite staying at Hilton properties compared to the changes to Diamond elite qualification in 2013.

Ric Garrido, writer and owner of Loyalty Traveler, shares news and views on hotels, hotel loyalty programs and vacation destinations for frequent guests. You can follow Loyalty Traveler on Twitter and Facebook and RSS feed.

Last month I posted a promotion from TopGuest for 500 points for linking HHonors and Facebook accounts at TopGuest. The offer T&C stated limited to first 40,000 HHonors members to participate.

And it looks like the registration page is still live if you want to get 500 HHonors points for free.

Another easy 500 Hilton HHonors points available with the DoubleTree by Hilton brand if you do not mind socially connecting your HHonors and Facebook accounts through TopGuest.com.

This offer is limited to the first 40,000 members to participate.

My 500 points posted yesterday.

Ric Garrido, writer and owner of Loyalty Traveler, shares news and views on hotels, hotel loyalty programs and vacation destinations for frequent guests. You can follow Loyalty Traveler on Twitter and Facebook and RSS feed.

Case Study: Hilton Worldwide looks at Hilton HHonors since the launch of new rewards eight months ago. Several data points provided by Jeff Diskin, Hilton Worldwide Senior VP of Customer Marketing give insight to the current state of Hilton HHonors.

• 45% of all Hilton guests are HHonors members.
• 200,000 rooms are available as Premium Room Rewards.
• 20% of all new HHonors redemptions are for Premium Room Rewards.
• HHonors expects 50% more new member enrollments this year than last year.

My takeaways from the data are HHonors elite members are probably experiencing some impact on complimentary room upgrades considering the rooms pre-booked as Premium Room Rewards. Then there are e-standby room upgrades (NOR-1) that anyone can access when offered at time of booking, even guests who are not HHonors members.

45% of guests are HHonors members is a historical record for Hilton. This is actually higher than most loyalty programs which leads to the question: Why are so many people staying at hotels without joining the hotel chain’s loyalty program?

The majority of hotel guests at major chain hotels obviously don’t know what they are missing.

Loyalty Traveler current hotel promotions summary- October 12, 2011.

DoubleTree by Hilton hotels are giving away one free cookie today to anyone who stops by the front desk and asks. Drop in and pick up a warm cookie.

Today, October 31 is also the last day to book a 20% discount on Best Available Rate for DoubleTree weekend stays Friday, Saturday and/or Sunday booked through the promotion landing page DoubleTree.com/email for stays through December 31, 2011.

Must use Plan Code ESO (Americas) and PBESO1 (Outside of Americas) when making reservations.

Loyalty Traveler Booking Notes:

I used the link above and I did not get any discount rates as I searched several cities and multiple dates.

When I simply clicked Reservations on the DoubleTree webpage and entered ESO in the Promotion/Offer Code field, then the 20% discount rate showed up. This rate was lower than AAA for hotels and dates I checked. [Click on image below to see full-size.]

The Great Getaway offer is advertised as up to 40% off Hilton brand hotel rates this summer. My searches for U.S. hotels indicate 15% or 20% off is most prevalent and even those discounts at several brands are based on the Bed & Breakfast rate.

Keep in mind these are prepaid room rates that do not allow changes or refunds. Also, keep in mind that AAA rates generally offer at least 10% off and tend to be flexible with no penalty for cancellation until just before arrival date.

The Great Getaway Hilton Terms

• Book May 13 to August 22
• Stay May 27 to September 5
• Hotels worldwide participating
• Must book at least 14 days before arrival
• Rates are prepaid at time of booking and nonrefundable
• Discounts are 15% to 40%.

This offer might be a good savings if you are not HHonors elite with breakfast privileges and breakfast is a valued component for your stay. Embassy Suites and Hampton Inn, where breakfast is complimentary for all guests, look to have better rates where the discount is tied to the Best Available Rate rather than the higher Bed & Breakfast rate for a Hilton Garden Inn, Hilton or Doubletree. The rates tend to be 15% discount for Embassy Suites and Hampton Inn in the U.S. and 20% for Hilton, HGI and Doubletree.

London rates actually look like a decent value discount with 40% off Bed & Breakfast rates at several hotels. London did not even make the Trivago list of top 10 cities for most expensive 5-star hotel rooms. That honor goes to New York.

Hilton Great Getaway 2011

Hotel Brands: Hilton, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Homewood Suites, Conrad, Waldorf-Astoria Collection, Hampton Inn, Hilton Garden Inn, Home2Suites. 

* Hilton HHonors Triple Miles with Virgin Atlantic Flying Club for stays April 1-June 30. This is a 4-key promotion allowing 3,000 miles per Hilton brand hotel stay. LT post March 29.

** Hilton HHonors has triple bonus miles offers with 8 airlines for stays April 1 – June 30. My blog post has promotion registration links for  Alitalia, Air France/KLM Flying Blue, British Airways, Emirates, Miles & More, Olympic, Turkish Airlines and Virgin Atlantic. LT post April 28.

* Hilton HHonors 2011-Q2 promotion for 1,000 bonus points per night April 1-June 30.  Registration is required. All  Hilton brand hotels worldwide participate. 2-key promotion.  Loyalty Traveler post March 25.

HHonors Point Stretcher rewards reduce the nightly cost in points for a hotel reward by 40%. The new list of hotels has been posted for dates through May 2011. This is the most hotels and dates I recall seeing in several years. HHonors is stepping up their game.

But then again, this is Hilton HHonors so just ignore the message that states “No Point Stretcher Dates available for Hilton Family Hotels” when you click the Point Stretchers link and select a hotel brand to actually see the hotels and dates for Point Stretcher Rewards.

There are even four Conrad Hotels listed. Although Belgium in February may not be the best weather, the Conrad Brussels will give you a fine place to stay in from the cold.

Hilton Scotts Valley/Santa Cruz is about ten miles from the beach in redwood country above Monterey Bay, but at least there is a good chance of getting a 75-degree beach day at some point during December and January when this hotel is available for 24,000 points per night booking a Point Stretcher reward, rather than the normal 40,000 points as an HHonors Category 6 reward.

The Drake Hotel and Palmer House in Chicago have Point Stretcher dates this winter reducing these 50,000 point Category 7 hotels down to 30,000 points per night.  I posted my impressions of these hotels on Loyalty Traveler blog a couple of weeks ago.

Drake Hotel and Palmer House Chicago Points Stretcher Reward Dates-January 2011

I’m working to come up with qualitative ranges in value because it would be really cool to just look at a chart and make a quick decision of which hotel provides a good or excellent redemption value for my hotel points when faced with a choice of hotels at various price levels and different redemption categories requiring different amounts of points.

Translating Quantitative Points Value into Qualitative Value

Example using a Hilton Hotel in Paris, France.

A single night at the HHonors Category 6 Hilton Arc de Triomphe for dates I checked came to $495 per night. The choice is $495 or 40,000 points. The quantitative redemption value works out to be $495 ÷ 40,000 points x 1,000 (or simply $495/40) = $12.38 per 1,000 HHonors points redemption value.

This is an “excellent” redemption value in my opinion.

So here is the basis for creating a qualitative judgment based on quantitative values. I think most of us will agree that getting $12 per 1,000 HHonors points is an “excellent” value.

As value drops below $12 per 1,000 points spent we must reach a point where the value is no longer “excellent”, and simply a “good” value.

At an even lower quantitative redemption value, say $5 per 1,000 points the qualitative value at some point drops to another lower level of just an “average” value for hotel points spent.

And at some point the money saved by spending points must become a “poor” value, i.e. the cash saved is not worth the cost in points for a free night, and the choice to spend cash rather than points becomes the better value for most hotel loyalty program members.

I’m working to come up with these qualitative ranges in value because it would be really cool to just look at a chart and make a quick decision of which hotel provides a good or excellent redemption value for my hotel points when faced with a choice of hotels at various price levels and different redemption categories requiring different amounts of points.

In yesterday’s Hilton HHonors post I set $7.00 saved per 1,000 points spent as my marker for when the redemption value using points is “excellent”. I set less than $3.00 per 1,000 points as a “poor” redemption value. This is a work in progress that I am trying to refine.

The Value of HHonors Points Exchanged for a Free Room Night

(based on a set-point of trying to get $7 in cash savings for every 1,000 HHonors points spent on free night rewards.)

Hilton HHonors Qualitative Value by Hotel Category for Excellent and Poor Points Redemption Value

Now I know there are category 6 hotels that will cost over $280 per night (Hilton Arc de Triomphe) and these hotels provide an excellent value for HHonors points based on this scale of $7 per 1,000 points being rated “excellent” redemption value. Even if the Hilton Arc de Triomphe goes to category 7 in 2010, the redemption value will still be “excellent” when spending 50,000 points to save $495, the room rate for the July 2010 dates I checked. $495 ÷ 50,000 points = $9.90 per 1,000 points.

This table advises me that I am getting excellent value for my HHonors points if I spend 25,000 points and get a Category 3 hotel room that would have cost over $175 per night. Are there Category 3 hotels that cost over $175 per night more than just a few days per year? I have not looked into that.

Certainly there should be Category 1 hotels in 2010 where the nightly rate will be over $52.50 and using points will provide an “excellent” redemption value.

Here are some real examples of redemption value using San Francisco hotels for Tuesday October 27, 2009.

Hilton San Francisco Union Square (HHonors Category 6 = 40,000 points)

Pay $160.65 ($185.68 after tax) or spend 40,000 points for King Bed Deluxe Room

$186 ÷ 40,000 points (x 1000) = $4.65 per 1,000 points (“average” value)

Hilton Union Square, San Francisco (white tower has great city views)

The factor that complicates the calculation is determining the points a member does not earn when using points for a free reward stay. Here is an example:

Hilton San Francisco Fisherman’s Wharf (HHonors Category 6 = 40,000 points)

Pay $179 ($206.75 after tax) for a King Bed Deluxe on a special rate offering 2,500 bonus points.

A HHonors basic member can earn 15 points per $1 when choosing Points & Points earning preference.

This means the HHonors member is not earning 2,685 HHonors points when redeeming points for a free night rather than paying for the hotel stay. ($179x 15 points/$1 = 2,685.)

This particular Hilton property also has a rate offer for 2,500 bonus points per stay. The bonus points rate is no additional cost compared to the lowest best available rate for the hotel at $179.

By using points for a free night reward the HHonors member actually is not trading 40,000 points for $207 in savings since the member would earn 5,185 points by paying for this hotel night. If the HHonors member earning Points & Points spends $207 rather than 40,000 points, then the member’s account balance will be 45,185 points higher after the stay. (I’m ignoring elite bonuses and other promotional bonuses which will drive the redemption value even lower.)

The simple calculation is 40,000 points saves $207. Redemption value = $5.18 per 1,000 points. This is a “good” redemption value.

But, the real calculation should be $207 ÷ 45,185 points = $4.58 per 1,000 points. The redemption value is now below $5/1,000 points and I rate this as just “average” value.

And depending on what bonus points promotions you are eligible for and what elite or HHonors credit card spending bonuses you may be entitled to the redemption value for HHonors points drops even more.

Hilton Fisherman's Wharf, San Francisco

Hampton Inn San Francisco/Daly City (HHonors Category 3 = 25,000 points)  Oct 27, 2009

Pay $139 King Bed ($152.90 after tax) or 25,000 points?

$153 ÷ 25,000 points = $6.12 per 1,000 points. This is a “good” redemption value.

A more precise calculation will count the points I do not earn when using a reward stay.

$139 x 15 points per $1 = 2,085 points

My new calculation is $153 ÷ 27,085 points = $5.65 saved per 1,000 points and this still ranks as a “good” redemption value.

Caveat: Although the Hampton Inn Daly City is quantitatively a “good” value, the added benefit of being in downtown San Francisco at the Hilton Union Square or Hilton Fisherman’s Wharf is value that one must consider when making a hotel points redemption. You may get better value quantitatively with the Hampton Inn Daly City, but the quality of a hotel stay in downtown San Francisco is a factor one must consider when choosing where to spend points.

Here is the link to the Qualitative tables by HHonors Hotel Category from yesterday’s Part 1 post.

Here is the link to Part 2 with rationale for why I created these qualitative tables.

I plan to develop qualitative tables for Starwood Preferred Guest next. And the SPG post will not include the detailed explanation of why and how I am creating these tables.