Originally Posted by
NJUPINTHEAIR
What's really stupid is that they have alienated their active revenue source to fix a problem -- credit card churners and VR abusers -- that could be easily fixed by limiting the number of times one obtains bonus points one receives when filing a credit card application for the AMEX/Citi HHonors product, and do as the Chase Marriott does and limit the bonus points to a one time thing.
Instead, those who actually stay in their hotels are bearing the brunt of this devaluation equally with those who caused it in the first place.
Hilton is in the business to make money, I would like to believe that some extensive research went in to this decision.
First and foremost, they may have determined that Diamonds and Golds value bennies like free WiFi, breakfasts, upgrades (particularly for award, leisure stays) more than stays at exotic resorts for below market redemptions. This describes me, I am guilty of playing the credit card game to accumulate Honors points, primarily through Hawaiian Airlines - well beyond Hilton's control.
To compensate for the dilution, I would not be surprised to see more generous quarterly promotions this year, possibly involving partners, like the Q412 promo with Virgin Atlantic. Hilton would also be very wise to "encourage" more properties to participate in quarterly promos, in return for the higher redemption value.
Hilton likely makes big money from credit cards, I do not consider them a primary cause of the change, churners are a small minority, can be dealt with if/when necessary by AMEX, Citi.