Marriott Rewards quiet points-to-miles devaluation and loud AA partnership

Marriott makes a stealthy splash with the reacquisition of American Airlines as a partner, yet a 12% price increase from 125,000 points to 140,000 points in the Marriott Rewards points to miles exchange rates table in May 2013 affecting all 37 Marriott Rewards airline partners goes unannounced and unnoticed.

The June 17, 2013 announcement American Airlines returns as an airline partner of Marriott Rewards for earning and redeeming points was welcome news to loyalty travelers. Marriott Rewards members have access once again to mileage earning opportunities with one of the big three airlines in the USA. That is a good thing and I should have written about this two weeks ago.

What surprised me most about the announcement, which I just got around to really looking over and writing about today, is the points-to-miles exchange rate change I noticed in the AA announcement.

Additionally, joint members can convert Marriott Rewards points to AAdvantage miles at the following transfer rate:

• 10,000 points =  2,000 miles

• 20,000 points =  5,000 miles

• 30,000 points =  10,000 miles

• 70,000 points =  25,000 miles

• 140,000 points =  50,000 miles

For more information and to learn more about earning opportunities, please visit aa.com/marriott and/or MarriottRewards.com.

I placed in bold text the points-to-miles exchange rate that is the truly significant announcement to me.

When did Marriott increase its points-to-miles transfer rate from 125,000 points for 50,000 miles to 140,000 points = 50,000 miles?

The only mention at all of the change I found was by a person with 15 posts on FlyerTalk, markr1, dated from May 23, 2013.

Marriott increases by 12% the best points-to-miles exchange rate among all the hotel loyalty programs without much notice or commentary.

Tier 1 – 140,000 Marriott Rewards Points = 50,000 frequent flyer miles

These are the Tier 1 airline partners of Marriott Rewards affected by the 140,000 miles = 50,000 miles exchange rate devaluation:

1. Aeromexico,
2. Aeroplan (Air Canada),
3. Alaska,
4. American Airlines,
5. British Airways,
6. Delta Air Lines,
7. Frontier Airlines,
8. GOL/Varig,
9. Hawaiian Airlines,
10. Iberia Airlines,
11. Southwest Airlines 50,000 points
12. United Airlines,
13. US Airways,
14. Virgin Atlantic

Tier 2 – 140,000 Marriott Rewards Points = 35,000 frequent flyer miles

And here are the Tier 2 airline partners of Marriott Rewards that always had lower exchange rates, yet these airlines are also affected by the devaluation with the price increase from 125,000 points to 140,000 points = 35,000 miles in May 2013:

1. Aeroflot,
2. airberlin,
3. Air China,
4. Air France/KLM,
5. Alitalia,
6. ANA,
7. Asiana Airlines,
8. Avianca-TACA,
9. Cathay Pacific,
10. China Eastern,
11. China Southern,
12. Emirates,
13. Japan Airlines,
14. Jet Airways,
15. LAN,
16. Lufthansa Miles & More,
17. Qantas,
18. Qatar Airways,
19. Saudia Airlines,
20. Singapore Airlines,
21. TAP Air Portugal

JetBlue Airlines and Virgin America

• 140,000 Marriott Rewards points = 25,000 True Blue points
• 140,000 Marriott Rewards points = 25,000 Elevate points

Marriott Rewards Points-to-Miles Exchange Rates is best of all hotel programs.

The reason this points-to-miles exchange rate change is significant is due to Marriott Rewards having a variable exchange rate for hotel points to airline frequent flyer miles. Variable exchange rate means as higher quantities of Marriott Rewards points are redeemed for miles, the exchange rate improves. The 125,000 points for 50,000 miles level was the best standard points-to-miles exchange rate among all hotel loyalty programs. 40,000 Starpoints for 50,000 miles is the closest for members earning large quantities of points through travel and credit card spend. Club Carlson is also a contender.

A 12% increase in points needed for the same miles is a significant devaluation for Marriott Rewards members who redeem points to earn airline miles.

Good news is Marriott Hotel + Air Travel Package rates have not changed and still offer the best points-to-miles exchange rate of any hotel loyalty program for Tier 1 airline partners of Marriott Rewards.

Marriott Rewards Points-to-Miles Exchange Rates for Aeromexico, Aeroplan (Air Canada), Alaska, American Airlines, British Airways, Delta Air Lines, Frontier Airlines, GOL/Varig, Hawaiian Airlines, Iberia Airlines, United Airlines, US Airways, Virgin Atlantic.

• 10,000 points =  2,000 miles (5 points = 1 mile)
• 20,000 points =  5,000 miles  (4 points = 1 mile)
• 30,000 points =  10,000 miles (3 points = 1 mile)
• 70,000 points =  25,000 miles (2.8 points = 1 mile)
• 140,000 points =  50,000 miles (2.8 points = 1 mile)
• Previously, 125,000 points = 50,000 miles gave a better exchange rate at 2.5 points = 1 mile).
• Note: Marriott Rewards Air+Hotel Travel Package offers 120,000 miles for 120,000 points above the regular 7-night hotel reward rate. 1 Marriott Rewards point = 1 frequent flyer mile.

Marriott Rewards points-to-miles exchange rate is lower with Tier 2 airlines including Aeroflot, airberlin, Air China, Air France/KLM, Alitalia, ANA, Asiana Airlines, Avianca-TACA, Cathay Pacific, China Eastern, China Southern, Emirates, Japan Airlines, Jet Airways, LAN, Lufthansa Miles & More, Qantas, Qatar Airways, Saudia Airlines, Singapore Airlines, TAP Air Portugal.

• 10,000 points =  1,500 miles (6.67 points = 1 mile)
• 20,000 points =  3,500 miles  (5.71 points = 1 mile)
• 30,000 points =  7,000 miles (4.29 points = 1 mile)
• 70,000 points =  17,500 miles (4.0 points = 1 mile)
• 140,000 points =  35,000 miles (4.0 points = 1 mile)
• Previously, 125,000 points = 35,000 miles gave a better exchange rate at 3.57 points = 1 mile).
• Note: Marriott Rewards Air+Hotel Travel Package offers 85,000 miles for 120,000 points above the regular 7-night hotel reward rate.  1.41 Marriott Rewards points = 1 mile.

The increased cost for airline miles is major news happening at Marriott Rewards over the past month.

Oh yeah, American Airlines, a tier 1 airline and Saudia Airlines, a tier 2 airline based on their points-to-miles exchange rates are now airline partners with Marriott Rewards.

Related Loyalty Traveler post:

Club Carlson devalues points-to-miles exchange rate (July 1, 2013)

Ric Garrido, writer and owner of Loyalty Traveler, shares news and views on hotels, hotel loyalty programs and vacation destinations for frequent guests.

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