FlyerTalk Forums - View Single Post - Consolidated "Points Devaluation" thread
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Old Mar 28, 2003 | 2:55 pm
  #27  
Rut Dog
All eyes on you!
20 Years on Site
 
Join Date: Aug 2002
Location: PDX
Programs: HHonors Gold since '02, Hertz President's Circle since '07
Posts: 3,228
I thought it might be helpful to throw some numbers at this discussion of devaluation. Using BlondeBomber's spreadsheet, I analyzed the 2,291 properties he had both pre 6/1 and post 6/1 categories for.

This analysis shows the distribution of properties across the old and new categories, and compares how many points it takes to get a single night reward. The comparison does not consider the loss of the multi night discount, which would drive the numbers up a bit.

It also obviously does not consider the VIP award hyper inflation, and the loss of other accruing benefits. If you find the analysis lacking without those factors, then I encourage you to download the sreadsheet and present your own alternative perspective.

Code:
Total Properties 2291
================================================================
Pre-6/1/03			After 6/1/03
Category		#	%	Cat.	#	%
Opportunity	188	8%	1	170	7%
Executive		1511	66%	2	1225	53%
Select		384	17%	3	578	25%
Classic		139	6%	4	218	10%
Premium		69	3%	5	61	3%
				6	39	2%

================================================================
Mean pts/1 night	21076		22211
Median pts/1 night	20000		20000
IMHO what these numbers show is a less dramatic picture than I think many people are painting. Using the mean per one night, the bottom line is Inflation 5.4%, devaluation 5.1% (devaluation calculated off a basis value of $0.0075 per point).

[I'll try to follow up later with a commentary on the VIP awards, and perhaps a more nuanced way of looking at it rather than just 17%, 50%, & 75% inflation.]

[This message has been edited by Rut Dog (edited 03-28-2003).]
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