Originally Posted by
azepine00
The difference is that some such as SPG or Hyatt (or UA and AA miles) simply keep up with inflation, economy and currency adjustments. They honor the value of their currency.
Within reasonable inflation I value those points and miles not too far from how I valued them 3-5 years ago (even though elite benefits are deteriorating but that's unrelated).
On the other hand other entities such as Hilton or Delta devalue points and miles year after year. It's no accident - those companies have a well planned goal of making sure a mile or a point you earn today will be worth substantially less tomorrow.
My bet is that Hilton cashes in big time. They sell points to credit card companies, airlines, whomever will buy them. Then, they run some sort of model to figure out how often in the future that they need to make adjustments to redemption rates. As many have noted, a number of properties actually have gone down in terms of points needed for award, particularly during "less busy" months, thereby encouraging people to use points when the hotel isn't full anyway. Instead of loathing the churners, Hilton has figured out how to sell their points for more extra cash than the nominal amounts of dough which churners actually cost them. Consequently, the program rewards churning and credit card loyalty as much or more than actually stays at Hilton properties. The business model is strong, at least for now.