Originally Posted by
Adelphos
The issue is that inflation has driven cash rates up dramatically at many hotels. Hilton points devalued pre-2021, but the value of the points has risen meaningfully the past six to eight months when measured against cash rates, if you believe the cash rates are actually indicative of current supply/demand dynamics. I just got my best value Hilton redemption ever last week (5 night stay, redeeming 240K points for a ~$5,000 stay, so over 2 cents per point). There will have to be some kind of devaluation across the board - Marriott has already announced theirs is coming, Hyatt moving to peak / off peak,
There is a lot more to this as well. Looking at 5 random nights at the Waldorf Maldives, I didn't see a starting rate under $2200 (before taxes and fees). If we were to compare that to the .5 cent valuation, that's giving away your flagship property at a significant discount. I know right now, as someone reads this, they are thinking of a response of why they are entitled to this discount. From a business perspective, it makes no sense. It was like when you could book the Bora Bora Thalasso through IHG for 60,000 points, and all of those hip to the value would suck up the rooms asap.
Thanks for your example of how the program still has value. These types of threads love to take things way out of context, if even true at all.