Hilton devaluation: It is, apparently, hotel loyalty program devaluation season. Since the first of the year Priority Club introduced a new 9-tier reward chart, Starwood raised the price of cash and points awards, Marriott introduced a new more expensive award tier and a points price increase for 36% of their properties. Just this morning I shared news that we’ll get a new devalued Wyndham Rewards chart on March 14.
And in the coming days we should expect the annual category changes from Starwood. I would expect a whole lot more hotels to go up in category (and thus cost more points to redeem) than down, because their categories are tied to each hotel’s average room rates and prices have been on the rise.
That makes Hyatt’s changes — more hotels getting less expensive than more expensive and only 17 hotels affected overall — seem like a downright anomaly. Although as part of cleaning up little used benefits that are expensive to maintain they did Platinum Extras benefits and also eliminated Passport Escape awards.
Now it’s Hilton’s turn and their changes are really significant (i.e. bad).
Effective March 28 several changes go into effect.
- Like Starwood and Marriott they will be offering fifth night free on awards – for elite members only but the benefit simply requires Silver status to obtain.
- They will also be introducing a new award chart
- And they will be introducing seasonal award pricing.
Currently there are (7) categories for all of their brands except Waldorf=Astoria properties.
Now they are going to have (10) categories, and seven of those will have separate high and low season prices.
Here’s the new award chart that will be going into effect:
Previously a category 7 property topped out at 50,000 points per night. Some of those hotels will now be category 10, where high season rates are 95,000 points per night. That’s a whopping 90% increase. Wow.
Here are the new and old award chart prices side-by-side:
There go the great values in the program. I used to value Hilton HHonors points at roughly half a cent apiece, recognizing of course that at the very top end I could do much much better — grabbing a $700+ ocean villa with private pool at the Conrad Koh Samui for instance for just 50,000 points per night. With award pricing now going as high as 95,000 points per night those amazing values are no more. The hotel now runs 80,000 points per night in February and March and 95,000 points per night the rest of the year.
The Conrad Hong Kong goes from 50,000 points to 80,000 points per night, year-round.
Among the full-service Hiltons in New York, the Hilton New York will range from 60,000 to 80,000 points per night, the Conrad New York from 70,000 to 80,000 points per night, and the Doubletree Guest Suites Times Square from 70,000 to 95,000 points per night. (That’s more than the Waldorf=Astoria which tops out at 80,000.)
At least they’ve published what category each hotel will be in in advance of the changes, something that Wyndham has failed to do.
Not yet announced, but this has to affect the valuable ‘AXON’ awards which offer 4 nights at a category 7 hotel for 145,000 points. Especially since category 7 is no longer the top redemption tier.
Of course you can make bookings now — including speculative bookings — at the current rates for future stays. Make your reservations now, cancel them within the cancel rules for your points back if you wind up not needing the reeservations. I really should be dropping my current half million point HHonors bank on some hotel nights just in case I want them, before they become much less valuable.
Ultimately more reward categories, and multiple prices within most but not all of those categories, complicates the program. And Hilton HHonors is already – by far- the most complicated program. They have ‘premium room awards’ and ‘cash and points’ awards but the prices of those vary. You can choose to earn points and fixed miles, points and variable miles, or points and points. And you don’t earn fixed miles on award nights, if you don’t change your earning style away from that when redeeming points you’ll leave points on the table. Just to give a few examples of the complexities that exist in their program before adding this new layer.
But in some ways none of this should be a surprise. Three years ago, Jeff Diskin who runs the HHonors program said he learned that he needed to keep members on the treadmill — running bonus promotions to give them more points and then charging more for room nights. Because members didn’t ‘get’ actual value.
Happy to have recently unloaded all of my HHonors points on 7 nights at the Conrad Maldives Rangali Island. It is–of course–95,000 pts in the new system.
Will AXON reservations for stays after 3/28 be honored?
How about the cash+points redemptions ? What are those rates?
In a spirited contest, Hilton wins the dubious “Hhonor” of most drastic devaluation thus far. I certainly hope SPG is nowhere near this ridiculous.
Damn it. Gotta figure out where to use my points quickly
Does Hilton make a list of hotels by category available?
Anyone, which is the most expensive Hilton in New Zealand?
10+ years as a Diamond (over 75 room nights per year). As matter of principle I’m done with Hilton starting today (minus blowing all my points of course)! This evening I’ll be canceling the rest of my paid stays for the year.
Are there any good programs to convert HHonor points to airline miles, (United, HawaiianAir)?
I think that this is an interesting change.
(btw, here is a list of all hhoors hotels by category: http://hhonors3.hilton.com/resources/media/hh/en_US/pdf/HotelCategoryChart.pdf)
And I think that “devaluation” is not accurate, since several properties actually cost less points per night (including a ridiculous 40K points getting you a 10 night Mexican vacation in several places if you count the 5th night free part, which is a super value, since, frankly the rate of accumulation of hhonors points is faster than any place else, still.) Lots of the mid level properties got the seasonal split (and most Hhonors hotels are cat 4 and 5 anyways and always had been). What changed and hurts? Two things:
a. Luxury properties actually cost what they should cost in par with competitors (but again, you can accumulate faster with Hhonors) and b. lots of cat 2 properties (usually Hamptons) in the Northeast and FL, jumped up to Cat 3 and from 12.5K to 30K a night
As far as I am concerned, b. hurts more. But the competitors never had anything like this…
This post along with your other posts about point devaluations have been helpful to me. As someone who takes a couple of big (for me) trips a year for pleasure I am finding it hard to see the value in hotel or airline programs. It has been hard for me to redeem air miles at a good value with reasonable flights. And except for Hyatt and Starwood the same has been true on the hotel front. I like the Chase Sapphire card because I can use the points to buy air tickets at the Chase site and get 20% extra. But that card and the Hyatt card are the only ones that to me have lasting value beyond the sign up bonus.
I reckon if I traveled more I would have more opportunities to redeem at a “good” value.
I guess I am reconsidering the utility of my being in this game at all.
The advice to make speculative bookings is very sound. Might as well, no penalty to cancel. By March 28 all my points will be tied up in future bookings
Will burn my remaining hilton points and cancel my Citi hilton cards for SPG and Hyatt cards.
There is no way I can win anything by using hilton credit cards cos hilton points are now a total worthless.
https://www.facebook.com/HiltonHHonors
Just makes the decision to focus on Hyatt that much easier………
I emailed Jeff Diskin and the CEO and voiced my displeasure. I encourage you all to do the same. Without customers they have no job. I am no longer a customer at this time.
Are we at the point yet where maybe we can give Club Carlson a little attention?
Because we’re at the point where aside from Hyatt, no program will allow you to redeem for aspirational properties at a semi-reasonable price point.
You get your 2 free nights with the Citi Reserve –> You redeem them –> You close the card –> you never touch Hilton Honors again until 2 years later when you get the bonus again
^^^
That’s going to be my new strategy towards Hilton
So who will be the first hotel chain to come up with a “Lucky Losers” promo? Club Carlson is the only one left with no devals – knock wood!
I’ve started a one man Facebook grievance campaign, please join me. A similar approach forced Makers Mark to keep the same alcohol content in their bourbon, can’t hurt to get drunk and flame them on FB.
What is the email address you have used to contact Hilton?
I will send them an email to voice my unhappiness.
I don’t think this is the end of this situation. Either the devals will be cut back, or some benefits will be introduced
Not because Hilton will listen to their customers, but because they’ll listen to AMEX and Citi
The best chance of making Hilton reconsider isn’t to complain to Hilton…. it’s to complain to Amex and CITI. They’re the ones that have influence at HHonors headquarters
This is awful news. Even with the ability to earn unlimited Hilton Points at a dirt cheap price this stinks. Always inflation and no adjustment to earn more points.
No wonder Hilton ended its partnership with Southwest. If not for that I would transfer my Hilton points immediately!
On the bright side, my point earning efforts are now simplified by the elimination of one program.
This totally sucks. Aspirational award prices shoot up. I done doing paid nts at Hilton!
What happens to AXON and GLON redemptions?
Niseko Village doubles to 60k during winter. :anger:
I’m calling Amex and Citi tomorrow to let them know if this goes thru, without a corresponding increase in earning rate, I will be cancelling my cards.
The breakfast Gold/Diamond benefit at the Waldorf=Astoria: “Voucher for medium coffee, juice, and pastry at Starbucks”.
Maybe a won’t bother blowing 50,000 points there. The Trafalgar in London had an excellent breakfast in comparison …
Hah, seriously, cure? That’s actually bordering on insulting (the benefit, not your post :p). “Hi, you’re paying $300+ or zillions of points a night, and we’d like to give you a $9 breakfast voucher…”
These are terrible changes. Some aspirational redemptions go from 50,000 (37,500 after 25% discount) to 95,000 points (76,000 after 20% for fifth night free). Why such a huge devaluation?
Many properties are calling it peak season practically all year.
Troy or anyone, what is Jeff Diskin’s email address?
Hilton now gets the label of Skypesos of Hotel loyalty programs.
The Conrad Hong Kong goes from 50,000 points to 80,000 points per night, year-round
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Now this is funny. The cause? HKD-USD peg. Love the hotel’s lounge, restaurant, and en-suite bathroom; however, I’ve always had trouble sleeping on their bed, and after a day returning from Macau, I’ve found that there are plenty of places to take a shower. So, not worth it.
This hotel is not worth even 40,000 points, but no doubt that the rich vs. poor in Hong Kong is causing many to the Conrad HK.
If a company wants to pay me to stay there….well, okay.
@John Landpesos is fitting…
Glad I just put less than 10K spending on Citi Hilton Reserve. I planned to put 40K on that card to get Diamond membership. Now I think 10K spending is the maximum number, which would earn me an one-night certificate.
Chris.nassetta@hilton.com is the Ceo
Jeff.diskin@hilton is the hhonors guy
I didnt get a delivery failure so i think they work
Pls provide email addresses for Citi & Amex as well and we will bombard them.
If you think losing the value of a stash of 500k points is bad, then I think you’ve just met the biggest loser right here.
Unlike most of you, I acquire large sums of HH points via a timeshare conversion (1:25). It’s not a great value, but ignoring opportunity cost for holding the timeshare (significant), I generally figure $1000 gets me about 5 nights at a 50k hotel — a decent trade at a place like Conrad Hong Kong, where the Diamond lounge food is spectacular, and acceptable at Hampton Inn (but not, say at the shitty Hilton Backbay in Boston).
Well, this just destroyed the whole premise of the HGV timeshare. The flexibility of booking awards on short notice is now at drastically undercut. I couldn’t be more angered and disappointed in the Hilton chain than I am.
@Yi. I too was going to spend $40k on the reserve card i just got last month. I have put $13k on it so far after a month and i think im done with it. Just not worth it now.
This increase is so steep, it’s absurd. You don’t charge $25 for a steak one night, then raise the price to $36 the next … unless you’re Hilton HHonors. Their loyalty program will now make hundreds of thousands of Hilton HHonors members disloyal. This is no idle threat: I, like many others, am done. Hilton HHonors is now a terrible value. Do they really think we won’t notice what a poor value the program has become.
I own a business. I understand the need to raise prices from year to year. But I don’t understand a loyalty program instituting redemption increases so egregious that it severs loyalty.
Total annihilation. This has got to be a reaction to all the credit card miles floating around out there. The least they could have done was raise earning to 12 points from 10 as a base, which would have balanced it out for Diamonds who earn most of their points in the rooms.
It stinks. But there are a few Cat 1’s and 2’s I can still use. That is about the only use for these points as the high end is a rip-off. Thanks Hilton, for screwing us again.
Before, every one knows Hilton points are the least valuable among the bunch; however, they have the same point requirement (50k) for top levels as Marriott and Priority Club, which is relatively low for their point value level, especially with AXON award that further cuts it to 37.5K. This time around they also adjusted the huge low-level gap. I think it is a more reasonable chart, whether people like it or not. Actually, there are quite a few hotels that have lower point requirements than before.
Call write and complain… Then switch our business to Hyatt… If your not loyal to me I will not be loyal to you… Sorry Hilton
After I posted to the HHonors Facebook Wall, my message was quickly suppressed. Another member quickly liked my post though, and I’ve been encourage. I like @David’s message above and believe a campaign is in order. I’ll gladly like whatever grievance page is made on Facebook. I’m posting the following and encourage you to do the same. Feel free to copy/paste or use my hashtags. I do think the disappointment can reach far and wide.
@HiltonHHonors @AmericanExpress @Citibank Years of business undermined by #HHonors devaluation. HHGold turns #disloyal, joins #boycott
Yeah unlike Marriott where I have threatened to I probably will just cancel my credit card and be done with this program.
Looking at the latest devaluation, 10 HHonors points is now worth only 1 cent. Will focus on Hyatt & SPG points now. Canceled my existing Hilton credit cards.
I just broke 40k on my hilton reserve this year. (Big time face palm) I was looking forward to spending most stays at hilton now not so much. Just biz expenses thankfully.
No more Hilton credit cards for me. Hilton is dead to me now. I am simply astounded at a devaluation this large.