22
Feb
It’s been a terrible year for getting value out of frequent guest programs. Since the beginning of the year we’ve seen pretty substantial adjustments in most of the big programs.
- Hilton is expanding to 10 reward categories and adding high season to boot, points required to redeem at some properties will be going up by as much as 90%. Last day to make bookings at the old prices is March 28.
- Priority Club changed from charging points by hotel brand to a 9 category redemption structure that’s often more expensive. March 18 is the last da to call to ask them to honor old prices.
- Marriott raised the price of reward night redemptions at 36% of their properties. You have until May 16 to use your points at old prices.
- Starwood raised the price of reward night redemptions at 20% of their properties (mostly mid-priced ones) as well as the cost of cash and points awards. March 5th is the last day to redeem points at 2012 levels.
- Wyndham is increasing points prices by as much as 87% for top hotels. March 14th is the last day to redeem points under the old award chart.
All of these chains have lowered some property reward night prices as well, but the increases generally far outweigh the decreases.
But there are programs good enough to switch to if your travel patterns match up with the chains’ locations. The advice is reinforced by the recent devaluations, rather than changed by them.
Overall the smaller programs seem to be where the most generous perks and points are… Hyatt, Starwood, Club Carlson, and Kimpton in particular.
Further, Hilton is still better than Marriott or Priority Club if you care about benefits and the ability to use your points for ‘aspirational’ stays. But choose the bigger program whose coverage fills in the gaps left behind by the smaller one you actually decide to care about.
And it turns out that the advice is the same as before the devaluations. It’s the programs that were weaker already that have become worse, the ones many of you shouldn’t have been focusing on to begin with, and these changes are just a wake up call.
So where do you go?
- Starwood - pioneered no blackout dates or capacity controls on reward nights — if a standard room is available at the hotel you can have it for points. Most other chains have since matched this. They also pioneered suite upgrades for Platinum elites. Last year they improved the benefit, allowing 50 night Platinums to express their preference for when they most want a suite, up to 10 nights a year (even on award stays). Award nights count towards status. The chain probably has the most high end hotels you’d actually dream about spending your points for.
Their Starwood Preferred Guest® Credit Card from American Express (my referral link) remains a gold standard for earning valuable points through credit card spend, and they have the largest number of airline transfer partners as well so the points are especially flexible (though transfers are not immediate).
Their biggest weakness, in my view, is that they don’t award as many points as other chains for your spending on room nights, and the most expensive properties cost a lot of points because of a punitive rule where “all suite” hotels at the top end cost double points (even though they are at the top end in the first place because they are all suite hotels).
- Hyatt – for confirmed suite upgrades (and even non-elites can confirm suites at booking for 4 nights off the Hyatt Daily Rate for 6000 points total, not per night – with Hyatt you rarely need to stay in a non-suite with the caveat that corporate rates don’t work for this unfortunately), for Diamond confirmed suite upgrades, and also suites on award nights which are the cheapest to attain — as well as the strongest breakfast benefit in the industry (full – not Continental – breakfast for up to 4 registered guests in the room when there’s no lounge or lounge is closed).
Their top end hotels are reasonably priced, and their round of changes to their award chart this year consisted of making more hotels less expensive than the number that went up in price — and they shifted the redemption categories of very few hotels. So the very best elite benefits and a good earn/burn proposition for their points make this a go-to program if their 500 global properties are in the right places for your stays.
- Kimpton – if your travel patterns match Kimpton locations, their personal treatment of elites (and they status match!) is pretty much unrivaled. Which is sort of surprising since the program is being run by a veteran of United! Lucky offered a nice writeup on the program back in December.
- Club Carlson – if you don’t mind staying in Radissons (much easier if you frequent Europe a good deal), their points earning and co-branded card benefits are just really good. In fact, Club Carlson is probably “overindexed” to use Jeff Diskin of Hilton’s awful term — too generous. The Club Carlson Visa benefit of buy one get one free on award nights (last night of every 2+ award stay is free) is pretty compelling too. It’s not my cup of tea because the hotels themselves aren’t to my taste and the elite benefits are far from tops even if the points program is pretty valuable. But it will work for some.
Bottom-line: Hyatt and Starwood are the best for elite benefits (Hyatt’s are better, but Starwood has better coverage with twice as many properties), and are also the least devalued major programs in 2013. Direct your stays to one of those two programs, the one that suits your travel patterns the best.
And fill the gap, if there is one (where your chosen chain doesn’t have hotels where you travel) with the Citi® Hilton HHonors™ Reserve Card (my referral link) which offers you free Gold elite HHonors status just for holding the credit card.
Mommy Points has confirmed as well that the two free weekend night signup bonus with the card will still get you two nights at nearly all Hilton properties, despite the coming March devaluation. So those nights are even more valuable than before, since they’ll be harder to get on points alone.



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Dave said,
Gary, I’m a Lifetime Platinum with Marriott – I still favor their program and properties
mommypoints said,
Watch out if you saying the Citi Reserve HHonors free nights are now “more valuable” than before…you may start Twitter on fire.
I totally agree with that, and the rest of the post though…plus Hotiwre, Priceline, and even vrbo also deserve additional looks for some trips.
Kris said,
@mommypoints
Why can’t you admit that you are just trying to get more people to sign up for your affiliate links…?
The Amex Platinum also became insanely more valuable too at 25k MR?
Andrew said,
If only it were as easy as the dream world you paint a picture of, Gary! Two of the four cities where I currently have projects don’t have Starwoods or Hyatts, and in the two that do, the Starwood/Hyatt properties are far too expensive to be allowed to book there over the Doubletree next door that’s $120 less per night!
Chris B. said,
+1 for Andrew. The town I stay in/near has three major choices (Hampton Inn, Fairfield Inn, Holiday Inn Express) and several minor choices (Choice, La Quinta, Country Inn). The nearest Hyatt or Starwood properties are about an hour away (near each other), and I don’t know if the program is worth the drive each day.
I guess my big question is if I end up staying in Hilton or Marriott properties, does it make sense to put spend on a Hyatt/SPG card, or should I double down on the Hilton/Marriott card to maximize the program, keeping Hyatt card as a back-up program (since the SPG card stinks for any non-stay status)?
Steve T said,
If you can deal with a Budget to Mid Priced Hotel Cahin with properties located mainly in the USA, LaQuinta Inns and their loyalty program LaQuinta Returns is an excellant program. Great service, many properties are similiar to a Hampton Inn, with the ability to earn a free night as low as 6000 points. I’ve utilized well over a dozen (more like two dozen) free nights with this program.
Amol (@PointsToPointB) said,
Yeah, as many of us have been trying to say, the Citi Hilton Reserve is not more valuable, the bonus just retains its value while the points don’t.
Actually, it loses value over the long run because you still earn the same amount of points for spending but need more points for redemption.
So please stop saying it’s more valuable. It’s not.
Scottrick said,
I agree with Amol that the Hilton free nights are not any more valuable (and Seth made similar comments yesterday on Twitter). Think of it in terms of currency exchange.
Currency A: $600
Currency B: a weekend night at the Conrad Hong Kong
Currency C: 50,000 points
Currency D: one free weekend night certificate
All of these “currencies” had equal value before the devaluation. After the devaluation we have new values for some, while others have stayed the same.
Currency A: $600
Currency B: a weekend night at the Conrad Hong Kong
Currency C: 90,000 points
Currency D: one free weekend night certificate
So three of them have the exact same value. The only thing that changed is Currency C, where inflation has eaten away almost 50% of its value. The free night certificate (Currency D) did not get any more valuable.
Scottrick said,
I should clarify: The reason I say they have equal value is that you can exchange A, C, or D to get B. Just like trading Euros, US Dollars, Yen, and Baht. Except in this case, Hilton HHonors points are more like ZImbabwean Dollars. The fact that Zimbabwe has runaway inflation doesn’t make the Euros, US Dollars, Yen, or Baht any more valuable — unless you have the unfortunate luck to be stuck in Zimbabwe. It just makes Zimbabwean Dollars less valuable.
Scottrick said,
I should clarify: The reason I say they have equal value is that you can exchange A, C, or D to get B. Just like trading Euros, US Dollars, Yen, and Baht. Except in this case, Hilton HHonors points are more like ZImbabwean Dollars. The fact that Zimbabwe has runaway inflation doesn’t make the Euros, US Dollars, Yen, or Baht any more valuable — unless you have the unfortunate luck to be stuck in Zimbabwe. It just makes Zimbabwean Dollars less valuable.
Tyler A said,
Out of curiosity, is Kimpton the only program that status matches?
Menashe said,
Just a note on the Hilton HHonors card – A few months ago, I spoke to a Citi rep about the Hilton Reserve card. I have a few Citi cards and she suggested that I convert an existing card over instead of signing up for a new one.
She neglected to mention that I wouldn’t then be eligible for the free nights, something a Citi rep (and her manager) just confirmed over the phone, now that I spent my $2,500. They gave me a $50 statement credit, and I do hold the card for reasons other than the two night initial bonus, but figured it’s worth pointing out.
LV said,
So just talked to a Priority Club representative who said that the March 18th grace period is only for readjusting the prices for stays already booked before January 18th. She said its for those hotel stays where the point requirements were reduced.
Anyone else have this type of response? I just thanked her and hung up – planning to call back later to get a different representative.
Sol said,
@LV
Just call another rep. Done for my two reservations couple of days back.
Nick said,
I am 16 of 18 nights into Starwood platinum challenge thinking of just dropping it though.
Gary said,
@Tyler A.. Priority Club… Best Western…. Hyatt will give you status during a 60 day challenge… Starwood will do a challenge… Marriott will do a 90 day challenge with status..
Gary said,
The free nights from the Citi Hilton Reserve card get you the same room nights as before. So they deliver the same absolute value.
I was being a bit tongue in cheek, which was clearly missed here, but it becomes relatively easier and less costly to get the nights via a credit card signup than via points redemption when the redemption price goes up. My point was about relative – not absolute – value.
(And the exchange rate claim doesn’t factor that the cost in US dollars of acquiring those points for the redemptions has changed in real terms.)
Gary said,
@Dave Cf. “Stockholm Syndrome”
LV said,
Thanks for the info Sol – much appreciated.
Hilton Free Night Certificates Are Not More Valuable - Hack My Trip said,
[...] Points, View from the Wing, and a few others have argued in recent days that the two free nights from the Citi Hilton HHonors [...]
Mooper said,
I’ve posted this elsewhere, but as here, too. Must a program keep points requirements static forever to avoid “devaluation”, or is there ever a time at which they can inflate the number of points required to keep pace with the paid rate (national currency) inflation and not have it considered devaluing? For example, if paid rates increase 10% over a 3-year period and a loyalty program updates their chart to require an additional 10% of points (on average), is this “devaluation” or are they just catching up? I don’t see how points inflation that keeps pace with paid inflation is a devaluation whatsoever. Do you?
Gary said,
The relevant metric is the percentage of your spending that is rebated to you through free reward nights.
If that percentage goes down, it’s a devaluation.
In any case, ‘devaluation’ isn’t the only key metric as I try to point out in my subsequent post on the value of hotel programs for free nights — it’s simply a good time to re-assess which programs provide the best value to their members and which program offer an inferior value proposition. It’s a competitive landscape, and we absolutely should compare what programs offer us.
And if a hotel program chooses to devalue — as they are entitled to do — they should do so with significant notice, including indentifying which properties will be going up and down. There’s no excuse to announce a change in categories on a date one month out but refuse to tell members which hotels will be changing. If it’s truly that they can’t get their act together in advance, there’s no reason the devaluation date must be set in stone. Figure out what properties are moving, and set the implementation to happen several months later.
Changes like Hilton is making — a 90% increase in points for the best hotel redemptions, altering terms and conditions of the program with no announcement let alone advance notice, that borders fraudulent.
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