Let me rephrase what I said to be more precise. I believe it is more meaningful to look at the devaluation in the VIP awards because these were the most valuable awards in the program. I don't know what everyone else's motivation and redemption history.

True, the GLONP have not been devalued as much as the GLON and ALON, but I don't believe they should have been increased at all for two reasons. First, with the recession in the travel market, the rooms if anything are less valuable now, so the number of points if anything should have been reduced. Second, the number of 50K bonuses awarded was a HH decision, and they should live with their mistakes rather than force their loyal customers to do so. If a mistake was made, they should correct it on a prospective basis and simply award fewer points in the future. I don't see how their liberal awarding of points gives them license to devalue the points; when you combine both actions its almost fraud IMHO.

Marq, I don't think your travel patterns are that unusual, but that is from my perspective. I have a record of the number of days stayed for every leisure trip (Hilton or other) I have made going back to 1997. 70-75% of my leisure stays are only for 1 night, and there is only one instance (Rome, where I stayed at the Marriott) where I had a 6 night stay. I will be using an ALON for 6 nights this October in Hawaii on my honeymoon so that will be a second. Almost all of the other stays are 2 or 3 nights. Thus, I rarely use ALONs or long multi-night awards. Of course, I am not one who enjoys lazing for 6 days at the beach on vacations. There are many who find that appealing so they are more likely to use ALONs and long multi-night stay awards. To each his own, I guess.

Even with the above information on my own travel stats, it's clear that my HHonors points were devalued. The overall increase in award category level (as discussed by Rut Dog) is only part of the issue, as is noted. My analysis suggests that on average there was an increase in award level of almost .5 (half) of a category. At the mid-level properties, this would effectively mean the points required for a one night award stay would go from 25,000 to 27,000 points or 10% if the half a level increase could be accurately reflected in the award chart. The elimination of multi-night discounts and the huge increase in the special (ALON/GLON type) awards are on top of that 10%. I weighted the loss of the multi-night discounts based on the travel patterns I mentioned above and estimate that my points were devalued to the tune of 20%. Those who make more frequent use of multi-night awards and the ALON/GLON awards are clearly affected to a greater degree. Following the devaluation, I also re-estimated the value I place on an HHonors point and dropped my valuation by the 20% figure to 0.55 cents each (or just above 1/2 cent each).

Mileking:

Thanks for the info. Most of my rewards have been SP5. I will also feel the devaluation. I also remember the double points instead of miles last year that built up my points in a hurry. I truthfully wish hotels and airlines would stop giving out points freely to non-flyers/stayers so that they don't feel a need to devalue points.

I also wish Hilton would institute a Super-Diamond level. Maybe at 100 or 120 nights. Although I really appreciate my Diamond benefits, I fear this Diamond fast track effort will increase the number of Diamonds and then force Hilton to decrease benefits.

Thanks again for all the inputs; I am still in the learning process on how to best take advantage of the laundering of my company's money thru hilton.

marc

I've noticed another trick Hilton is doing to "devalue" points is raising the hotel category levels. For example 'Hilton Wittier' CA is going from Executive to Cat 3. That hotel is a definate Cat 2.

Ditto! I just turned down the Disney Visa charter membership because, hey, I had my trusty HHonors points which were faarrrr more valuable...until all of the above in the first posting happened. Now I'm rethinking my 'no thank you'!

star

I sincerely hope our Hilton lurker is taking notice of the dissatifaction registered on this thread and reporting it back to the HHonors powers that be.

Deleted

marc

[This message has been edited by Marq (edited 03-31-2003).]

I still like Hilton. I like the way I am treated. I like their service. I like their upgrades. I like the availibility worldwide. I like the way they address any issues I have immediately. All this commotion about devaluation of points doesn't sit right with me. I have never viewed points(awards) as anything but a bonus. Don't forget, we also get airline miles too. I think I got close to 20,000 airline miles for staying at a hotels that I liked. I challenge those that are leaving HH to find a better home with SPG or someone else. HH warned us about the new point levels and I hear are even making exceptions to the redemption rule. So these changes look to me to go into "real" effect 2004. Just a sign of changing times. I am not happy about the changes but I also am not jumping ship from them either.

deleted

[This message has been edited by lisadiamond (edited 03-31-2003).]

korea71:

You said what I was trying to say but you said it much more elegantly. The points are a bonus. The recognition by the hotel staff that I am a valued guest and their attempts to make my constant nights away from home confortable is the primary benefit.

thanks,
marc

PS Lisa, I apologize for my misguided personal attack

I disagree. Again, I don't disagree with the sentiment - I am unhappy the best deals have been eliminated - but I disagree with the analysis.

To begin with, the recession is actually a sound business justification for devaluing points.

Per room and per property profits must be down, because occupancy is down and rates are down with them. Paid room rates can not be raised because the market will not support such a move. And service reductions to improve margins have to be limited because of the risk of devaluing the brand.

So Hilton must find alternative ways to enhance profits, and devaluing points can add to the bottom line with a relatively low risk factor, the primary risk being alienating most valuable customers. The risk factor is low because (1) the truly most valuable customers are those who pay all the time and rarely redeem, and (2) The alienated customer can probably be won back through targeted or general relief in the form of promos or other program offerings. And regardless of those factors, the risk is equally mitigated because even the disgruntled won't readily find a better value elsewhere.

Also very important to note is that devaluation in a hospitality recession is very much in line with supply and demand. Cash poor consumers are more willing to spend points on rooms than pay cash. Meanwhile the supply of rooms remains essentially the same. So the HHonors redemption cost increases can be seen as merely a natural response to market forces.

In this light, one could view the 50K promos as very good planning rather than a series of mistakes. The 50K promos generated a certain amount of revenue at the time, and now that the paying market is slumped the burgeoning points market is primed with a good supply of currency ready to provide a healthy alternative revenue stream during difficult times.

I hate to sound like an apologist, because I must reiterate: I'm as unhappy as the next person about the devaluation. But my emotions are mitigated when I can see some sound business principles behind them.

Where Hilton lacks most, in my opinion, is communicating with the HHonors loyalist. This has been handled rather poorly, and perhaps has exposed them to more risk than would otherwise be the case.

[This message has been edited by Rut Dog (edited 03-31-2003).]

In my previous posts on this thread, I made the following general points:

I think the 5.1% devaluation is justified (even while painful from our end) by the business and market force arguments I laid out in my last post. Likewise, since market forces have increased consumer demand for points, it makes sense to me to see reductions in bonuses. And I see the airline transfers and the elimination of the airline VIP packages as more related to the problems of the airline industry than anything to do with Hilton.

But this still leaves the problem of the VIP reward increases and the elimination of the multi-night discount. I see the latter as primarily a margin increasing opportunity created by the lack of such discounts in other hotel programs like Starwood. Remember, Hilton execs are in a very tight spot, and margin needs to be increased at the lowest risk possible, and the lack of competition in this area makes this a risk worth taking.

The VIP rewards are more complex, and I've taken advantage of some free time over the past weekend to do a detailed analysis of these changes. It is probably way over-detailed, but I look forward to feedback from those of you that wade through it all.

For those who won’t be wading the details, I offer this summary on VIP’s:

Unfortunately any analysis will do little to mollify lisadiamond and the others who are no longer satisfied with the value added to their spending dollar by HHonors. For me, too, the bottom line is value, and all I can offer is why I think the HHonors rewards still provide a good value for me.

But in order to show why these analyses demonstrate the value of HHonors rewards, I have to digress from the topic of VIP rewards inflation and delve into why I view HHonors not as a loyalty program but as a credit card rewards program. This perspective makes all the difference in the world.

I see now that this post has morphed into a 2000 word essay, too long for a regular post, so I have broken it up into three sections as follows:

[This message has been edited by Rut Dog (edited 03-31-2003).]

HHonors Is Not a Good Loyalty Program

First off, to understand my perspective, you need to realize I don’t view HHonors as a loyalty program, and don’t think it stands on its own as such. IMHO, stay points alone accrue at such a meager pace that you have to travel at diamond levels merely to get enough points quick enough to actually feel “rewarded” for you loyalty.

But if you view HHonors as a credit card reward program, as I do, the value issue, when choosing where to spend your hotel dollars, becomes somewhat moot. The question for me is, “Do the HHonors rewards provide me with the return I look for from my credit card spending?”

If the answer is yes, then simply stay at whatever hotel provides the all around best value, and sleep soundly knowing that while staying at Best Western (and eating your paid breakfast!), you are earning points towards a free HHonors stay

I’ve posted a few times in this forum and MilesBuzz how I measure the return on my credit card spending. I’m behind in my admittedly laborious bookkeeping, but let’s just stay that my reward usage leaves Discover and all the other cash back cards in the dust. You can search to find my historical figures, but they are always over 2% cash back equivalent (CBE), regularly averaging out at over 5%.

I posted previously in this thread that the devaluation for regular stay rewards is about 5.1%, not including the multi-day discounts. Since this will vary greatly depending on one’s redemption patterns, let’s just use 6% for discussion purposes, and 5% as my CBE. If my CBE is reduced by 6%, I’m still earning 4.7% which is well within acceptable value ranges for me.

And at this point I should mention that the 5% CBE has not included any VIP rewards. Since VIP rewards still provide a substantial points discount off of regular rewards, their usage (starting this year for me) will only make the CBE return look that much more attractive, even at the inflated rates.

[This message has been edited by Rut Dog (edited 03-31-2003).]

VIP Rewards Discount Analysis -- GLOx

That said, let’s discuss the devaluation as it pertains to VIP rewards. The simplest analysis is as follows:However, the other way to look at these is by the amount of discount they provide off the standard points “rates”. I think it’s not very helpful to look at these rewards without comparing them to the standard rewards. They are supposed to be a VIP discount (we know that’s a joke – just get a card and you’ve got Silver), but they are a discount nonetheless, and the discount is off the standard rates.

I’ll mention right now that the new scheme effectively eliminates ALON and TEEN, as the inflated version of these rewards offers no cost advantage over GLOx, and in fact is less valuable in the case of the Pointe resorts of Phoenix. So really, just consider them gone.

That’s the bad news. The good news, if you look at discounts off of regular redemption rates, is that the GLON2 reward is a good deal for Cat. 5’s, and the GLONP2 is actually a better deal than the GLONP when compared against their respective standard rates.

So, let’s take a look at the numbers of the GLOx series from a discount perspective:Usage of these rewards at Classic and Select properties is still at a discount, but is not quite as much as before. Still it isn’t all that drastic: the Classics had been 39% off and are now only discounted 29%, while Selects were 23% and are now 17%. That’s too bad, but you can still beat both of these, just like under the old scheme, with point stretchers (40% discount), which are much more likely to be booked at Classic and Select.

But the biggest draw of this series has always been the blanket use of GLONP at any Premium property in the world, and I for one am happy that at least under the new scheme, this the 23% discount has actually gone up to 27%. Unfortunately, the 27% discount is off of an reward that went up 23% (standard 6 nights premium), but at least the new VIP reward is still less than the old standard reward.

This doesn’t wipe out the devaluation, but in the new landscape it still means this is a very good value. I look forward to using it some day in Singapore or Hong Kong. http://www.flyertalk.com/forum/smile.gif

Hasta La Vista ALON and TEEN

Meanwhile, the golden egg of HHonors has always been the ALON/TEEN rewards, which are essentially the same rewards. The catch is that the ALOTEEN, as I’ll call it (no pun intended), is limited to a select number of primarily premium properties. Regardless, the golden egg is gone, as you will see below.

First note that two Premium properties, the Pointe resorts in Phoenix, have selected to be 5’s, not 6’s, under the new scheme.

Also, the DT San Diego Golf Resort, previously the only Classic in this group of properties, will be a 4. Therefore, when weighting an average for the group of properties, I’ve eliminated the DT simply because under the old scheme the ALOTEEN was no better a deal here than the GLON, and under the new scheme the GLON2 actually is a better value.

( I have always wondered why Hilton put this property in the special TEEN reward, not just because it doesn’t make points sense, but I also don’t think it compares by reputation with the other properties. Not that it’s a bad place, but really, if you were going to San Diego on this reward, would you stay here or Torrey Pines? Unless you’ve family in Poway, I’d say the Torrey Pines takes it hands down. Please DTSDGR fans feel free to correct me on my impression, but the fact that it doesn’t need a special reward remains, and as such I will keep it out of the average.)

Devaluing the Pointe’s and removing the DT, here’s how the ALOTEEN rewards stack up:The new scheme brings the Cat. 6 property rewards in line with GLONP, and, in the case of the Cat. 5’s, the GLON2 is actually cheaper than the TEEN2. When including the DTSDGR, 3 of the 9 properties offered under ALOTEEN can be had for less with GLON2. For this reason in particular I hope Hilton is on top of this and won’t be having people redeem these rewards when cheaper alternatives exist. And for simplicity’s sake, Hilton should just delete the ALOTEEN rewards from the catalog, period, to reduce confusion.

In Hilton’s defense, this chart clearly shows what an incredible (perhaps outrageous) value the 8 premium properties were at nearly half “price” under ALOTEEN. Why have a reward that is more discounted than Point Stretchers? Hopefully, the silver lining will be that Point Stretchers will appear at these properties, which previously, to the best of my knowledge, never offered them. Whatever the future may hold, if you haven’t gotten the message yet: Book an ALON or TEEN while you still can!

Though the golden egg is gone, let’s remember that only get these deals at 8 properties. There are many other Premium/Cat. 6 properties around the world worth visiting, and the GLONx2 rewards still provide a decent opportunity to visit these at a very reasonable points rate.

[This message has been edited by Rut Dog (edited 03-31-2003).]

Wrap Up

In conclusion, I’m really glad I wrote all this out, as it makes things much clearer for me. I hope some of you find it at least somewhat helpful.

This analysis does make me confident that HHonors is still a viable and valuable credit card rewards program. Whether or not your future paid travel plans include a paid stay at an HHonors hotel, your future can include some nice reward stays, and there are still some very good reward deals to be had out there.

Rut Dog, very good microeconomic analysis. One issue overlooked (of course your comments are welcome) is the marco side.

Hilton are making a devaluation of points with a very long amount of time to use these points before the devaluation takes place which is during the actual recession stage. Hense on a macro-side, when the economy booms again, which it will more than likely at the point when the devaluation begins, they will make even more money.

From another poster challenging SPG x Hilton,
I've looked at SPG, it was tempting, but I stayed with Hilton. When I'm overseas, I do book Six Continents as they give me a good value for my buck, especially when I stretch my money as far as possible. However, I try whatever means possible to book Hilton when out of the country, compare price and make a decision. Only in Hong Kong has the Sheriton come into play in my decisions. I feel the Sheriton charges too much in BKK with all the choices available in that brilliant city.

If I have award points, I usually alternate between the two, Six Cont and Hilton. Inside the USA and Canada, it's always Hilton.

SHADO

No one is happy with the devaluation, and the new point levels required.

But having said that, I disagree with your perspective that HHonors should not be viewed as a loyalty program.

While I understand your points, they too easily overlook why I am a Diamond member of HHonors in the first place.

1) I get consistently high quality service nationwide and woldwide at a vast array of properties.

2) I have a true, dedicated VIP response team a phone call away to meet any special needs I may have.

3) I have a VIP management team available a phone call or e-mail away. One can not overstate the uniqueness and importance of this fact. Name any other travel loyalty program that guarantees it's top tier members 100% satisfaction - the rate I and most diamonds have achieved for many years.

4) Uncooperative property problems aside, I always receive the best room (available) in the house, breakfast for myself and my party at no charge, lots of free bottled water, snacks, lounge access, etc.

So, while my ability to take my family on free vacations will be severely reduced next year, and that's a shame, When I have to stay at a hotel, the Hilton family of properties still treat my loyalty as if it is appreciated - very appreciated. For the true frequent traveler, that is still priceless.

Have to agree with NJDavid. I started out as a Hilton hater 15 years ago with some bad experiences and through this board and, retrying the system again as a gold and now diamond, I have been very pleased with the Hilton/Conrad/Hampton/Doubletree experience. Lots of properties, no problems getting reward stays when I want (even as a gold this wasn't a problem, even during busy seasons), and wonderful treatment at most properties.

Some US Hiltons need a lot of work in renovations but worldwide (and most US locations I have stayed). I have had great rooms at reasonable prices, always free breakfast and quite often GREAT breakfast buffets, and welcome amenities that have included wine, champagne, massive fruit bowls, and delicious chocolate truffles.

I have come to the conclusion that I prefer the status part of the program and the reward stays are just an added bonus . . .

Wow, lots to digest there in the last few posts! Rut Dog, great analysis! I do think you missed the big picture of why many are so upset with the devaluation. You note that the single award night devaluation is only around 5%. If that were the extent of the changes, I don't believe there would be too much complaining. I would venture to say that my leisure stay pattern of 70-75% one night stays, discussed earlier, is highly unusual, yet my analysis suggests my HHonors points were devalued 20%. Most people stay multiple nights at the same location and thus took advantage of the multi-night discounts. From the comments, many people saved their points specifically for A/GLON awards and didn't redeem for much else. The multi-night discount and A/GLON changes are what people are upset about and the devaluation is very real....and certainly more than the 5% you note and the 20% for my situation. All in all, your analysis is very useful. Thanks for putting it together!

As far as HHonors not being a loyalty reward program, I have to disagree. It is what keeps me coming back to Hiltons and without it I would be forced to simply consider room price and nothing else, and likely stay elsewhere.

I'm not sure I agree with the sentiment expressed by BlondeBomber that the status part of the program is preferred. My view is that status (HHonors, SPG, whereever) is greatly overrated. I believe it once held more value, but my more recent experiences suggest that I am not being treated any better than someone who walks in off the street without a reservation or someone who uses Priceline. The rewards (free rooms) are where it is at and I calculate the expected value of the points I would achieve on each stay to determine if I am better off staying elsewhere for less total $$$. I will say that the best benefit of HHonors Diamond is the apparent lack of controls on award redemptions. If HHonors were to change that, it would seriously upset the apple cart and I would likely re-evaluate where to take my business.

RutDog, I'm not sure I agree with your analysis. My point is that in a recession, there is a glut of rooms and therefore the value of a room decreases. At the same time, HH is increasing the price in points of these rooms. So its an unjustified double-whammy.

I believe your point is that its Simply Good Business to raise the redemption levels to get people to pay in cash instead of points. I agree with your view of human behavior to prefer to conserve cash. However, if you extend this logic, then Hilton should raise the cash prices of their properties as well, since this will bring in more revenue per room.

What your analysis leaves out is that a lot of us would not spend $300+ per night at HWV if we had to spend cash. As pointed out, HH fails as a loyalty program and I'd happily accept a 50%+ discount to use priceline and stay at a comparable or better property.

Or to extend your argument a little further, Hilton should advertise one price and raise it once the guest arrives. Isn't that what Hilton has done with the HH program? I feel they have.

I estimate a HH point is worth $.0068 to me assuming I'm redeeming a VIP award. I get that by figuring a room is worth at most $200 a night times 6 nights divived by 175,000. For $200, I can stay at what is probably a better boutique hotel or pay less and get something comparable on Priceline, even in Europe these days. Not being diamond, when you deduct for capacity controls and similar factors, the risk of future devaluations, etc., I'm not sure its worth the effort. I'm shifting more of my spending to cash back credit cards.

P.S. I don't mean to challenge you, but I'm left unpersuaded. I appreciate the back and forth, and hope you do to.

I had a question for all:

For those of you who have more than 100,000 points, are you going to cash in the GLON award for 100,000 miles (even though you may nothave anything specific planned)?

No. I usually don't stay that long in any one place. I also try to include at least one revenue night in any of the awards that I may use. It's amazing how one "paid" night before free nights ensures all benefits that otherwise might not be available due to capacity controls. I do this even though I am a diamond.

Most likely, in my case.

While I feel for those of you who have chosen Hilton as a primary program, I personally can't be too upset. I ran up 115,000 points with ~8 stays (mostly in 2001), so I can't really complain that Hilton is giving me over a year to use a GLON at the old rate. And the Gold status that I've had for the last 2 years was through one of the 50,000 promos, and using AAGU on the last day (2/28) I now have Gold for another 2 years. I've had a very easy time with Hilton, and I can deal with the devaluation as a result.

I, too, have the problem that another poster has- I'm not used to staying at hotels for more than a few nights. It makes choosing a hotel for a GLON that much more difficult!

deflating point values
 

The new Hilton web site is tremendous-ly bad! It is hard to look at account information and the value of my points has again gone down. I see that a $100 gift certificate for major retailers has gone up .... was 30,000 points and now 40,000 points.
I wrote hilton and was very careful not to sound like a complainer. I stated my veiws in a civil fashion despite the anger I had toward the new "rewards"!!!
a bass boat for over 9,000,000 points
a nintendo I could buy at a store for $300 for over 350,000 points?
a snowmobile for over 6,000,000 points.
a telephone with an xtra handset for over 90,000
...

I redeemed 110,000 in las vegas 4 yrs ago for $400 in chips... now the same amount of chips costs 160,000 as the value is now 40,000 points for a $100 chip.
The value of the points has been great in europe or asia when staying at a Hilton or Conrad for 25,000-35,000 points a night. with a Diamond upgrade for a deluxe room and executive floor privillages the value of the points is as high as $450+ a night based on guests who pay in cash.

Two and a half years ago I took my girlfriend to Frankfurt and Athens 150,000 points each for airfare from green bay to frankfurt (25,000 united points from frankfurt to athens) athens hilton was 25,000points a night X 5 night stay . frankfurt hilton was a little more per night ....anyway the whole trip cost 500,000 points.
Now this trip is not available- as the air is no longer an option with Hilton honors program. A Hilton rep said the airlines were to blame as they were asking too much for the airline certificates. I wonder if the airlines also saw the points that they were trading for flights as being devalued and not worth the trouble. Other companies seem to still be offering air travel as a program benefit.
I have 500,000 points right now. After I burn them up I am thinking about switching preferences. Marriott said if I had 18 stays in a quarter they would give me Diamond equivlent status. Starwood gave me Platinum just for asking when I mentioned 120 nights a year in Hilton properties.

Some people like cheverolet some like ford some like dodge. (usually because of a very good or a very bad expierence.) They are all basically the same, it is the luck of the draw in some cases ... you may have a great car and you may have a lemon.

Is there that big of a difference with hotels or am I flippin out about nothin and should shut up @:-).
After all the hard earned points are mine because of a good inghts rest.....
I got them for sleeping

It used to be that there were some reasonable deals for converting HH points to airline points and VV. However, the "value" of trades has diminished greatly in the last few years. My guess is that its due to the decline in profitability of the airline business in general since 2000.

As to trading points for retail items, its almost never a good deal to do so with any program's points (airline or hotel). The "prices" are always a poor value vs. paying cash when compared to the potential value of redemption for stays or flights. The real value is in using a loyalty program's points within the group that they were earned from in the first place.

I agree with the analysis of value of retail items.

Deflation? Certainly.

However, I see both an inflation in points and and increase of the "point price" in particular here in Europe. During the last two years I had two triple points and two double points promotions (took some telephone calls, but it worked). The best "point for the dollar" deals were in New York (360.000 points for 6000 Dollar and 205.000 points for 4100 Dollar) - this alone secures 20 nights in a Cat. 6 hotel. This cannot be a sound development: 20 nights in a top European place with a rate of 320 Euro cost about the same I paid for my original stays in New York. Spend 10.000 Dollar in New York, get 10.000 Dollar of European travel for free.

You guys in the US will certainly feel the pain even more. The Categories of the European properties went up - certainly a result of the weak Dollar. On the other side of the pond we enjoy it: A 220 Euro rate for the Hilton Berlin is still a 220 Euro rate, but scores about 6.000 points. Five stays, get one free. With the greenback at 1,20 and not at 1,50 it was about six 1/2 stays to get one free, the weak Dollar increases the European domestic value of the point.

Over 4 years hotel prices have gone through the roof. Yes points have changed a lot since then, but some things have been added,since they were runnning so mnay promos a couple of years ago at double or triple points for 90 days or more.

Inflation rampant in points
 

Inflation has greatly impacted point values. I am too young to remember this but it used to be that you actually had to fly in an airplane or stay in a hotel to get these miles/points. Now, just charge your grandchildren into debters prison and you can get the 1% freebee that used to be a reward for being a good customer. I tend to use them whenever I see a reward I want, like a free subscription ot the Economist (jk). If you store these things up and never use them, the point inflation will kill you. Unlike bank accounts, these points don't have an interest rate to ease or bail out the owners from inflation's bite. I just wish I had stashed some money in EUR or CAD two years ago when I had the chance to move away from the Bush Peso.

I will give this a whirl if I can pull it off!
Thanks

That is the problem with all points/miles programs, which is why I shake my head when I see people proudly boasting about "banking" 4 or 5 million points, etc... why save them? They are worth less and less every day.

The merchandise catalogue tied to HHonors, though, is indeed ridiculous. When you can spend 30,000 points on a NYC hotel room that retails for up to $500 or 350,000 points on a Wii that retails for $250, the valuation is beyond absurd. The merch is either for people who have so many points they don't care that they're getting screwed... or people too busy to comparison-shop.

Consequence of Honors Devaluation: Commitments to Take our Business Elsewhere
 

Since we at FT are probably the most intense travelers and revenue generators for travel suppliers, we probably have more power than we realize.

I am starting this thread to demonstrate to HHONORS that going ahead with devaluing our points when the economy has plummeted and business travel is in a slump makes no logical sense.

If hotel rates were rising, Hilton would be pressured by its owner franchisees to increase the rates they get when providing reward space. Since rates are plummeting, there cannot be such pressure, and Hilton is obviously making this change to enhance its own profitability at the expense of its most loyal customers.

Over the past several years, Ms. Travelexpert and I have consistently been giving Hilton 120 nights each year.

So I'll start out making a commitment to decrease my Hilton business to zero if possible. On occasion, Hilton may be the best option--but I'll seek out alternatives moving forward if the new award chart is implemented next January.

Not likely
 

As with other gripes about this program and that...just read the forums for other hotel programs - same .....ing and moaning at various times. Devaluation...bonuses...blah blah blah. The grass isn't greener elsewhere and whining here isn't going to do anything to change a devaluation that's already announced. Hey, if anyone actually follows through and reduces or eliminates their HH stays, there will be more upgrade opportunities for the rest of us - even with NOR1.

I am a HH Diamond member, in a Doubletree property as we speak. Tomorrow night I have a reservation at a Hilton property, and kid you not have cancelled the reservation a minute ago to transfer to a Sheraton after reading the thread on the increased point redemptions.

I was already on the verge of going back full time to SPG as their top tier benefits are so much more rewarding. You actually get upgraded. Quite often to a suite. 4PM checkout is much easier to get. Their Platinum members are actually valued.

So much so, that I am going to go out of my way, even when geographically it is more convenient to stay at a Hilton property, to patronize SPG properties. As they actually deserve my business.

Another HH Diamond here who was prepared to make a few mattress runs to re-up for diamond. After seeing the devaluation I have cancelled my Hilton plans and will stick with SPG Platinum and Priority Club Ambassador.

Thanks Hilton for making the decision easy,
sdcarver

I don't think so.
Hyatt and PC both actually improved their programs over the last two years. SPG stays about even - they adjusted some properties but the value of points remains strong because of cash+points option.
Hilton and Marriott programs are by a wide margin the worst of the bunch.
Good luck with your NOR1 though. ;)

You are certainly entitled to your opinion, but I respectfully believe you are wrong that the grass isn't necessarily greener or that there isn't anything we can do to affect something already announced (but not yet implemented).

Personally, I believe the grass is a more brilliant shade of green at SPG and Hyatt. While I'm disappointed with my rate of upgrades to suites at SPG (a paltry 24% unprompted), at least I do no worse than at Hilton, and I appreciate the aggressive promotions SPG has offered throughout this year. Hyatt has a phenomenal year end promotion and prior to it I would have never stayed at a Hyatt - now I've got 12 stays and am only one away from top tier status (thanks in part to the stays count double promotion). So Hyatt just earned a bunch of money from me that would have otherwise gone to Hilton to re-secure Diamond for 2010. Not to mention great benefits like free breakfast and Internet, confirmed suite upgrades, and (right now) a whole ton of UA miles and free stays through March 2010.

As it stands, I've got 9 or 10 stays with Hilton YTD. They first lost me due to some dumb*** customer service failures on their part in January (which would have cost them almost nothing to resolve - perhaps $50 in points), and as I pondered returning, I noted with disdain that SPG offered very enticing promos and Hilton offered nothing of particular interest to me. This probable significant points devaluation is all I need to say "adios" to Hilton and get my last 3 SPG stays and 1 Hyatt stay for top tier status with each.

Will they miss me? Not one bit. I'm under no illusions about that, although enough people leave and they'll see a blip on their reports. But I provided incremental revenue for them at typically off-peak times and almost always at the BAR (since my travel is personal and any special rates I might otherwise have access to don't result in benefits overseas). Now that revenue goes to SPG and Hyatt. And I bet there are many others like me.

My experience with Hilton started several years ago because I got a Hilton blue card in the mail (I think from US Airways). Since then they've earned a few thousand dollars from me and I've learned a lot and had some great experiences (think Conrad HK, Conrad Singapore). Despite the great experiences, I've learned enough to know there are better deals with the competition for me (although I will happily recognize that for some/many, Hilton continues to provide value).

To those who stay - good luck and best wishes. ^
To those who go - good luck and don't take my upgrades. :p

Moved all my stays to Hyatt and Starwood for the rest of year. Hilton is now the weakest frequent guest program compared with Hyatt, Starwood, Marriott and Priority club. The lack of promotion and drastic devaluation hurts!

As I mentioned in another thread...

<-- see where it says "HH: DIA" in my programs, next year it will say "HH: Nada".

This devaluation validates the decision that I made last year not to patronize Hilton anymore even though I've been HH Diamond for a number of years. It comes down to unimaginative top-tier benefits vis-a-vis the other programs (specifically compared to Starwood and Hyatt) and the lack of loyalty incentives aka promos. Thus, my projected number of stays this year is 4, and only because of the current 25,000 points promo. This was just enough points to top up my HHonors account for a nice Hilton vacation before I lose my status.

I follow what some posters here are saying that devaluation happens to all programs. Hilton has not been the lesser of the evils.

I am a HH Diamond member who struggles to understand why Hilton chose to increase their redemption requirements in this economy. Occupancy rates are at an all-time low. Properties are struggling to attract revenue. Why would you increase redemption requirements? It just doesn't make sense. :confused:

I pledge to cancel my reservations at Hilton properties if Hilton continues with this folly. I will take my diamond business elsewhere.