Tag Archives for points.
Several Hyatt hotels have figured out a trick to save themselves money and cheat members out of points. And there’s nothing that Hyatt will do about it, so they can get away with it with impunity.
Arguing which is the best transferable points currency, between Chase, American Express, Citibank, and Capital One, is a bit like arguing whether Mickey Mantle or Ted Williams was a better baseball player. As frequent flyers we’re incredibly fortunate to have been a part of the rise in transferable currency competition.
In this post I look at which program has the best transfer partners – and argue that’s American Express. That’s only part of the story though since aerning rates and transfer rates (with bonuses) also matter.
Earlier in the week I wrote that customers were transferring points from Marriott to Lufthansa and they were just getting lost in the ether. There seemed to be a broad issue with Lufthansa transfers, and that this was a sudden decision on Lufthansa’s part that applied pretty broadly.
In this case Marriott is coming under criticism for how they’re handling Lufthansa’s withdrawal from points transfers because their points transfers are actually useful. Who would transfer Hilton points to Lufthansa miles if they had any other option?
Capital One just announced its first-ever miles transfer bonus. You receive a 100% bonus transferring Capital One miles to Emirates Skywards through March 24 at 11:59 p.m. EST.
It appears that SkyMiles is now charging 105,000 miles each way for transatlantic business class awards, up from 86,000 miles. That’s a 22% devaluation without notice on top of Delta’s already most-expensive saver awards compared to competitors, and a 50% increase in a year.
When Delta raised transatlantic prices to 86,000 miles just over a year ago they rolled back the increase briefly, before bumping it up again to 82,000 miles in June. So we don’t know if this new highest price will hold in the immediate term.
American and Hyatt have announced a partnership. It doesn’t yet appear to have a name, but it’s similar to what Starwood executives built for Crossover Rewards, and Hyatt’s loyalty program is now largely run by ex-Starwood executives.
At Marriott and Hyatt the payment a hotel gets for your award night is not linked to the number of points you pay.
Most hotels actually want your award business. If you’re taking up a room that would otherwise go empty, it’s pure marginal revenue. And if you’re taking up a room on a night they’re full they get a large payment – generally equal to their average rate for the year, though not as high as the highest rate they might charge on that night. One hotel is even warning members about the impending award chart price increase for the property.
Hilton’s basic program is the least rewarding for spending at hotels and elite benefits are weak. They do not promise Diamonds upgrades to suites even if they’re empty, and they do not promise late check-out requests will be honored. Where Hilton Honors is useful is for the occasional guest who can get status just by having a credit card. There’s some chance this could change since they’re testing a confirmed suite upgrade benefit with some Diamonds, my hunch is if they launch it that holding a credit card alone won’t be enough to have this benefit. One of the most irritating things about Hilton Honors is its lack of transparency. They eliminated their award charts. Here’s what they published just a couple of years ago: Five years ago they effectively killed charts when they introduced…
Some members are really motivated by points (redemption) and others are motivated by better treatment (status). If a program offers members more than usual for taking certain actions during a specific period of time, they’re going to get more of those actions.
And you can test customer behavior, how much do you need to offer? which customers respond best to which kinds of offers? Here are four that Marriott is reportedly sending out.
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Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
