Bonus from Membership Rewards to hotels; not quite as bad a deal

Posted by Seth on October 9, 2011 under Hotel, points | 3 Comments to Read

I’ve never been a particularly big fan of using American Express Membership Rewards points for hotel stay transfers. The rates are generally pretty awful and there are better ways to accumulate hotel points out there. Still, the option is there and every now and then it is something that folks use.

It looks like AmEx is trying to make the product a bit better, at least for a few months.

UPDATE: This promo is only for cards in the MR First program, namely US-issued Platinum and Centurion cards. Sorry for getting anyone else excited, though you probably shouldn’t have been anyways.

Through the end of the year they’ve got a sale on for transfers to Hilton HHonors and Starwood Preferred Guest. Both programs are offering 25% off.

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There is also a 25% discount on the various free night certificates that are available via the Marriott Rewards program:

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None of these are a particularly great deal but it does suck a bit less.

JetBlue adds Marriott, Icelandair as partners

Posted by Seth on May 2, 2011 under Flying, frequent flyer, News, points | 2 Comments to Read

JetBlue announced today two new partnerships, furthering the growth of their route map and TrueBlue loyalty program. On the flying side Icelandair and JetBlue will now provide interline service with connections between the two available at Boston, New York’s JFK and Washington’s Dulles airports. And on the hotel side Marriott is now an earning partner with TrueBlue.

The Icelandair partnership is similar to eight of the nine other interline partnerships JetBlue offers. It adds the option for a single ticket and through-checking of bags but the fares are additive and there is no frequent flyer reciprocity in terms of earning or redemption.

The Marriott relationship is a nice improvement on the TrueBlue side, adding the option for TrueBlue points earning across the entire Marriott product portfolio. The full-service brands (The Ritz-Carlton®, EDITIONSM, JW Marriott®, Autograph Collection®, Renaissance® Hotels, Marriott® Hotels & Resorts, Marriott Vacation Club®) will earn at a $1=1 point ratio while the other brands earn at a $2=1 point ratio. This is an improvement versus the earning rates on the carrier’s other hotel partner, Hilton, where all properties are at a 2:1 earning rate. Earning on hotel points still does not extend the expiration date of TrueBlue points; only flight or American Express points do.

Overall, two big improvements that see JetBlue continuing to improve their product portfolio.

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Comparing Southwest’s Rapid Rewards 2 and JetBlue’s TrueBlue programs

Posted by Seth on January 10, 2011 under frequent flyer, News, points | 6 Comments to Read

Since the announcement last week of Southwest Airlines’ new Rapid Rewards 2 program there have been a number of comparisons drawn to the other frequent flyer programs that operate under similar premises, namely revenue-based earning. Certainly not everything in the Rapid Rewards 2 program is revenue-based but a lot of it is. And the program is strikingly similar to the TrueBlue program from JetBlue. Just take a look at the comments of Dave Canty, JetBlue’s Director of Loyalty Marketing and Partnerships:

Just looking at the new SWA program, it’s almost identical to the JetBlue TrueBlue program, we are flattered and you’re welcome Mr. Kelly

Mr. Canty is correct; there are a number of similarities in the two programs. But there are also a fair number of differences, enough such that it is worthwhile to compare the two programs in detail.

Earning Points by Flying

Both programs see members accruing points based not on the distance of the trip but based on the amount paid for the airfare. In the TrueBlue program the earning is fixed at 3 points/dollar and doubled to 6/dollar if one buys the ticket at JetBlue’s website. Southwest’s new Rapid Rewards program has three earning levels – 6, 10 and 12 points/dollar spend – based on the type of fare. More restrictive (and generally cheaper) fares are worth fewer points while the fully refundable Business Select fares are worth the most. While most leisure customers will likely see their earnings at 6 points/dollar in either program Rapid Rewards 2 offers more potential upside in earnings, particularly for big spenders.

Earning Points with Partners

Thanks in large part to having been around much longer, the Rapid Rewards program has significantly more earning partners than TrueBlue does. Moreover, the earning rates with the partners appear to be better for the most part.

Rental Cars

Both programs have Hertz as a rental car partner. Rapid Rewards also has Alamo, Avis, Budget, Dollar and Thrifty. For all of their partners Southwest credits a flat 600 points per rental, the equivalent of $100 in airfare spend on the cheapest fares. In TrueBlue a rental with Hertz will net between 50-300 points, the equivalent of $9-50 in airfare spend*.

Southwest’s Rapid Rewards is much more lucrative for accrual with rental car partners.

Hotels

Currently TrueBlue has Hilton HHonors as an earning partner at the rate of 1 point per $2 spend. Rapid Rewards has Best Western, Choice, HHonors, Hyatt, La Quinta, Marriott, Starwood, Wyndham and the Venetian as hotel partners in the new program. Each of those partners will earn a fixed rate of 600 points per stay.

Once again, the Rapid Rewards program appears much more lucrative for accrual. If you are spending more than $1,200 on a stay and staying at HHonors-affiliated hotels then TrueBlue will net more points.

Credit Cards

Both programs offer a loyalty credit card for earning additional points. Both cards offer one point per dollar spent at most merchants. Both also offer two points per dollar when used to purchase airfare from their affiliated airline. The Rapid Rewards card also includes bonus points each year when the annual fee is paid. There is a premium card available on the Rapid Rewards side that can also earn Tier Qualifying Points (more on this later) for spend. The JetBlue card also offers bonus points for spend in certain additional categories, including gym memberships, restaurants, movie theatres and event tickets.

Overall this earning path seems pretty even; each has minor advantages but not enough to skew towards earning in one program or the other.

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Worth it to buy back hotel status?

Posted by Seth on February 21, 2010 under frequent flyer | Read the First Comment

I’ve not spent very much money to maintain hotel status over the past several years.  Since I switched my travel to all personal from a mix of personal and business my total hotel spend has decreased significantly while the number of nights I’m in hotels has stayed the same or increased.  That raises a tough issue: Is it worthwhile to pay extra to have the status that loyalty programs bring?

The question has been brought to the forefront for me this week with an email I received from Marriott. They are offering the opportunity to buy back elite status for their Marriott Rewards members and they’re discounting the number of points required for that renewal right now.  As Gary has reported, Gold buy-back can be had for 25,000 points, a discount of 15,000 points off the regular price.  In my case, the offer is to buy back Silver status for 7,500 points, a 12,500-point savings.

And I still think that both offers are a pretty cruddy deal.  The 7,500 points for Silver is the equivalent of one night in a Category 1 level hotel.  That’s not all that much money in spend but the value for the spend is pretty much nothing.  The value for Gold status is somewhat higher but it still doesn’t make much sense to me.  If you’re not actually staying enough to use the benefits why pay extra to have them?  Maybe if the interruption in travel was a one-time thing due to a change in travel patterns or something like that, but for me it makes no sense at all.  I’m not going to get the value and I know it.  No need to spend extra for it.

Marriott to remove black-out dates

Posted by Seth on October 23, 2008 under Uncategorized | Be the First to Comment

It was only a matter of time before Marriott made this move to stay competitive in the frequent stay program space.  Starwood has had a no blackout dates policy for a long time now (though some hotels do manipulate room types to limit availability), and Hilton recently changed their program to expand that option to all their members; it previously was reserved for their Diamond (top) level group.  Now Marriott has joined the crowd, removing their StayAnytime reward product and removing the blackout dates from their program.

Of course they are spinning this as a great benefit to their members.  And, of course, it is an it isn’t.  They have added a new Category 8 reward level.  Stays at those properties will now be 40K points/night, up from the previous max of 35K points/night at a Category 7 property.  The hotels that will be classified as Category 8 are:

  • Paris Marriott Hotel Champs Elysees
  • Renaissance Paris Vendome
  • JW Marriott Capri Tiberio Palace Resort & Spa
  • Rome Marriott Grand Hotel Flora
  • London Marriott Hotel County Hall
  • London Marriott Hotel Grosvenor Square
  • London Marriott Hotel Marble Arch
  • London Marriott Hotel Park Lane
  • Le Merigot, A JW Marriott Beach Hotel & Spa, Santa Monica
  • Renaissance Chancery Court London
  • New York Marriott East Side
  • New York Marriott Marquis
  • Renaissance New York Hotel Times Square
  • South Beach Marriott Hotel

In addition, multi-night stays are getting a bit of a change.  The current program offers a sliding scale, where the per-night rate is reduced the longer you stay at the same place.  The new program will offer a 5th night free approach; shorter stays will no longer receive a discounted rate per night.  This is actually beneficial for folks who were planning on a five night stay in a hotel in categories 1-5.  For the category 6-8 hotels the five night price actually goes up in the new program.  And for 2-4 night stays the cost goes up across the board.

Also, they are increasing the bonus earned by their Platinum members to 50% from 30%, a much needed increase to remain competitive.

All changes are effective as of January 15, 2009; rooms cannot be booked using the new levels until that time.

This is certainly one of those changes where the value will be measured very much individually based on travel habits.  It would definitely be bad for me as I rarely have a five night stay anywhere.  But for folks who like that approach to travel it might not be so bad.