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Amex buys $1 billion of Hilton Honors points

Amex buys $1 billion of Hilton Honors points

Old Apr 17, 20, 12:53 am
  #1  
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Amex buys $1 billion of Hilton Honors points

https://www.bloomberg.com/news/artic...erican-express

https://www.headforpoints.com/2020/0...rican-express/

Amex has pre-paid for points that they will award to cardholders in the future.

Raffles (Rob) of HFP speculates that Amex received 4 billion points for their $1 billion but there is likely to be some agreement not to devalue them right away, otherwise this prepurchase would be "pointless".

Whatever happens my strategy is still to earn and burn quickly. I did lots of earning last year and the virus hit just as I wanted to start burning, so that will be happening as soon as possible unless paid rates are really cheap.
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Old Apr 17, 20, 1:45 am
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Originally Posted by :D! View Post
Raffles (Rob) of HFP speculates that Amex received 4 billion points for their $1 billion
That would be a very poor value, and the speculation seems to be way off.
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Old Apr 17, 20, 8:50 am
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Originally Posted by Andriyko View Post
That would be a very poor value, and the speculation seems to be way off.
Oops, I meant 400 billion.
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Old Apr 17, 20, 10:10 am
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Originally Posted by :D! View Post
Oops, I meant 400 billion.
That makes more sense.
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Old Apr 17, 20, 12:39 pm
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How many people will be canceling this credit card due to changes in their travel schedules going forward? Curious move for American Express. May be lots of good spend x/get y bonuses ahead.
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Old Apr 17, 20, 6:58 pm
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I just down-graded my Amex a couple of weeks ago. Will upgrade once my travels start up again.
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Old Apr 17, 20, 10:31 pm
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Originally Posted by halldavi View Post
I just down-graded my Amex a couple of weeks ago. Will upgrade once my travels start up again.
I did the same. Wish I had had the foresight to product convert my CSR to Freedom when the annual fee hit end of Dec 2019
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Old Apr 18, 20, 6:44 am
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As someone wrote in the comments on Rob's blog the cost to Hilton is likely going to decrease over the next one year as occupancy falls and therefore the reimbursement to hotels rarely exceeds the minimums for the brand, as little as $25 for a DT- I can't remember exactly but I did post the numbers for 2018 at some point.

With plummeting occupancy franchise owners may choose to fight corporate on this, leave the brand or sue.

I noticed that for the next few months staff & friends rates have been pulled from hotels (which are of course still open) which will have had oodles of availability given its automatically releasing rooms based on occupancy. Nevertheless it may just be a process to discourage travel.
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Old Apr 18, 20, 7:55 pm
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Originally Posted by :D! View Post
Oops, I meant 400 billion.
You should be able to edit your original post above to correct that.
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Old Apr 19, 20, 12:04 am
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Originally Posted by :D! View Post
Amex buys $1 billion of Hilton Honors points
And I thought I was into MS....

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Last edited by DELee; Apr 19, 20 at 12:53 am Reason: critical typo
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Old Apr 20, 20, 11:52 am
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I see some serious redemption devaluation coming along.................
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Old Apr 20, 20, 11:59 am
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Originally Posted by sdix View Post
I see some serious redemption devaluation coming along.................
It's one thing to devalue your customers in a loyalty program. It's another thing to immediately devalue what you just sold the bank providing you liquidity during an economic crisis. AMEX isn't staffed with idiots who would buy something worth a billion dollars and let the company that sold it to them turn it into "whoops, it's actually worth 500 million now".

It'll get devalued at some point but I would argue it's actually a decent time to acquire Hilton points as an AMEX/Hilton customer if AMEX starts throwing them around... just don't plan on keeping them around forever.
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Old Apr 21, 20, 6:25 pm
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I value Hilton points at 0.3 cents per point. I am happy if I get 0.4
So if Amex paid 0.25 cents per point, it is not a bad deal.
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Old Apr 22, 20, 1:26 am
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Originally Posted by storewanderer View Post
How many people will be canceling this credit card due to changes in their travel schedules going forward? Curious move for American Express. May be lots of good spend x/get y bonuses ahead.
I cancelled UA Club Card and will be doing the same with AMEx Platinum.
I'm holding onto Aspire, though.
I definitely won't great value out of it this year. But at the very least, it'll get me 1 (possibly 2) weekend nights, plus I always use up my resort credit.
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