Reward price changes?
Oct 20, 2019, 1:04 am
#1
Original Poster
Join Date: Dec 2009
Location: Tulsa, OK
Programs: UA Silver
Posts: 140
Reward price changes?
I was just looking at my upcoming stays and notice the reward pricing has changed some since my original booking. One has gone up,but one has come down a titch. Do I need to cancel and rebook to save myself a few points? Thanks for looking at my newb question!
Oct 20, 2019, 3:29 pm
#4
FlyerTalk Evangelist
Join Date: Aug 2000
Location: London
Programs: Hilton, IHG - BA, GA, LH, QR, SV, TK
Posts: 17,005
Oct 20, 2019, 4:11 pm
#5
Moderator: Avianca, Travel Photography, Travel Technology & USA
Join Date: Jul 2001
Location: Far western edge of the La-La Land City limits
Programs: Emeritus VIP Fromins Deli Encino grandfathered successor program - UA MM & HH Diamond
Posts: 3,725
Just happened to me a week ago on a RSVP I booked 3 months ago in Eastern Europe. Points needed dropped from 34K a night to 28K. Cash costs for a room seemed to drop a corresponding percentage. Stay is in about 3 weeks from now.
A few days after I rebooked at the lower rate, checked again and the points jumped to 38K. Cash cost also went up, but not by a similar full percentage rise.
Moral to the story, regularly check points bookings right up to your cancel deadline. About one on three bookings of mine since HH eliminated fixed charts I have successfully ratcheted award prices down. Sometimes the savings may be as little as 2,000 points/night though.
A few days after I rebooked at the lower rate, checked again and the points jumped to 38K. Cash cost also went up, but not by a similar full percentage rise.
Moral to the story, regularly check points bookings right up to your cancel deadline. About one on three bookings of mine since HH eliminated fixed charts I have successfully ratcheted award prices down. Sometimes the savings may be as little as 2,000 points/night though.
Oct 21, 2019, 9:26 am
#7
Join Date: Aug 2010
Location: Gloucestershire
Programs: BA Gold (ex-GGL, maybe future Silver), Hilton Diamond
Posts: 6,197
I'd simply add that, if the reward price goes down, it's likely that the cash price is now very low for that property and you may be better banking ALL your points and paying entirely in cash.
Oct 21, 2019, 10:16 am
#8
Join Date: Sep 2012
Location: NW London and NW Sydney
Programs: BA Diamond, Hilton Bronze, A3 Diamond, IHG *G
Posts: 6,343
Award prices are linked to the current price of the flexible rate, but capped at a maximum number of points. This maximum used to be published and related to award categories, but these no longer officially exist, which has been an excuse for several devaluations.
If the award price is not a multiple of 10000 (except for the now rare 5000 point hotels) then it is most likely a revenue-based award price. Thus if the flexible rate goes down the number of points required can also go down.
Furthermore, the award price is based on the flexible rate when converted to USD. Thus, if the USD rises in value to the currency of the hotel's rates, the award price can also drop, generally only 1000 points at a time.
This was particularly noticeable with BREXIT as every time GBP dropped by more than 2 or 3% vs USD I was able to rebook award stays for 1000 points less - and the lower points prices stuck even if GBP recovered later. Also the case when the euro was falling against the USD in 2018.
If the award price is not a multiple of 10000 (except for the now rare 5000 point hotels) then it is most likely a revenue-based award price. Thus if the flexible rate goes down the number of points required can also go down.
Furthermore, the award price is based on the flexible rate when converted to USD. Thus, if the USD rises in value to the currency of the hotel's rates, the award price can also drop, generally only 1000 points at a time.
This was particularly noticeable with BREXIT as every time GBP dropped by more than 2 or 3% vs USD I was able to rebook award stays for 1000 points less - and the lower points prices stuck even if GBP recovered later. Also the case when the euro was falling against the USD in 2018.
Oct 21, 2019, 6:05 pm
#9
Moderator: Avianca, Travel Photography, Travel Technology & USA
Join Date: Jul 2001
Location: Far western edge of the La-La Land City limits
Programs: Emeritus VIP Fromins Deli Encino grandfathered successor program - UA MM & HH Diamond
Posts: 3,725
Just happened to me a week ago on a RSVP I booked 3 months ago in Eastern Europe. Points needed dropped from 34K a night to 28K. Cash costs for a room seemed to drop a corresponding percentage. Stay is in about 3 weeks from now.
A few days after I rebooked at the lower rate, checked again and the points jumped to 38K. Cash cost also went up, but not by a similar full percentage rise.
Moral to the story, regularly check points bookings right up to your cancel deadline. About one on three bookings of mine since HH eliminated fixed charts I have successfully ratcheted award prices down. Sometimes the savings may be as little as 2,000 points/night though.
A few days after I rebooked at the lower rate, checked again and the points jumped to 38K. Cash cost also went up, but not by a similar full percentage rise.
Moral to the story, regularly check points bookings right up to your cancel deadline. About one on three bookings of mine since HH eliminated fixed charts I have successfully ratcheted award prices down. Sometimes the savings may be as little as 2,000 points/night though.
Award prices are linked to the current price of the flexible rate, but capped at a maximum number of points. This maximum used to be published and related to award categories, but these no longer officially exist, which has been an excuse for several devaluations.
If the award price is not a multiple of 10000 (except for the now rare 5000 point hotels) then it is most likely a revenue-based award price. Thus if the flexible rate goes down the number of points required can also go down.
Furthermore, the award price is based on the flexible rate when converted to USD. Thus, if the USD rises in value to the currency of the hotel's rates, the award price can also drop, generally only 1000 points at a time.
This was particularly noticeable with BREXIT as every time GBP dropped by more than 2 or 3% vs USD I was able to rebook award stays for 1000 points less - and the lower points prices stuck even if GBP recovered later. Also the case when the euro was falling against the USD in 2018.
If the award price is not a multiple of 10000 (except for the now rare 5000 point hotels) then it is most likely a revenue-based award price. Thus if the flexible rate goes down the number of points required can also go down.
Furthermore, the award price is based on the flexible rate when converted to USD. Thus, if the USD rises in value to the currency of the hotel's rates, the award price can also drop, generally only 1000 points at a time.
This was particularly noticeable with BREXIT as every time GBP dropped by more than 2 or 3% vs USD I was able to rebook award stays for 1000 points less - and the lower points prices stuck even if GBP recovered later. Also the case when the euro was falling against the USD in 2018.
Ultimately I cancelled the points RSVP and moved to an AAA cash rate of 104€ all-in. It is a HGI property, BTW.
Oct 21, 2019, 10:16 pm
#10
Join Date: Sep 2012
Location: NW London and NW Sydney
Programs: BA Diamond, Hilton Bronze, A3 Diamond, IHG *G
Posts: 6,343
0.42 eurocents per point seems to be the best you can get on these revenue-based redemptions, but only if you were going to pay the flexible rate. I'm happy to redeem at this rate when I have too many points and no plans to use them at properties which are more expensive thus still offering the fixed/capped points rates.
