Will Marriott reduce their exorbitant point redemptions in the future?
 

This year, I booked a St. Regis for 240,000 points, because of Marriott's change in their policies around point redemption with dynamic peak rates, for this coming year (Jan 2021), the rate is now 400,000 points. Do you think with the pandemic and potential aftermath, that Marriott will revisit and change their policies?

Marriott (and other businesses) need CASH right now. I expect prices will drop before redemption rates do.

Instead of changing rates, could it be easier to just switch some properties to off peak? Or to bring in cash they could offer cash and points awards?

I think first and foremost Marriott and the hotel owner will need cash, So I think cash rate will make for some very terrible points per dollar redemptions.

The St Regis, regardless of which St. Regis is actually a very bad example because a lot of the 85K, 100K peak, per night St. Regis were 30-35k SPG points, thus 90k-115k Marriott points. If you could get a points booking. RC's former top Tier was 70K points. In less than a year after the official merger date those top level properties were temporarily reduced to the new category system max of 60K. Now of course an additional top category was added.

As an example the Gritti Place under Starwood was 130K SPG points for 5 nights before the merger was completed. The St Regis NY was 30K- 35K SPG points per night, 90K-105K per night Marriott, Thus the top level St Regis are still cheaper today than pre merger.

I think of those month you could reserve those top St. Regis properties for 60k/night/ 5 nights for 240K as a sale part of the early merger transition.

Agree with others, that Marriott will want cash. Also, many customers will not want to give up their cash, and look to use miles / points instead.
I don't see point / mile redemptions becoming significantly cheaper soon.

To answer OP's question: No.


Marriott needs cash and the last thing it needs to do is to fill rooms with people paying in points but who create cash overhead.

Sometime 2-3 years from now, it is possible that Marriott and other chains will adjust things, but right now, cash is king.

Don't see them doing this. They will want you to spend $$$$s. I would not even be surprised if they stop allowing free nights to count for elite credit.

Yup. This! If you kept track of all the "top" tier properties during the legacy SPG program pre-merge, you'll realize some exceptional St Regis and Luxury Collection, or even W were ridiculously expensive on starpoints. So if you do the conversion to marriott points (x3), they are still sort of cheaper now. The 60k were a one-off promotion, which Marriott realized was too costly for them, because they never really managed properties that sells for $4-5k or even $10k per villa per night before.

We all know why these things happen, but next week the Courtyard Ocean City MD is $60/night (midweek) OR..... 50K points. We can't go, but I've been regularly punishing myself researching deals I cannot take advantage of.

We had a Hawaii trip slightly affected by the virus shutdowns. 2 1/2 weeks of point stays. We want to recreate next year. Points required at least 50% more.

look at the promos, MAGC, welcome bonus, etc offered by SPG. I think the last SPG promo was earning something like 2000 pts a stay (6000 M points). And look at the promos now, 2000 points a stay (667 SPG points). MAGC is still 500 M points (use to be 500 SPG points). Earning is not nearly as good as the SPG days even with these “discounts”.

Yes the promos have been weak under Marriott, except the one a year ago which was double points. there also seems to have been a lot of target double night and double points promos none of which have I been targeted for but it does seem to have occurred pretty widely.

And yet under SPG the if you stayed 75 nights, platinum 75 level, you would earn 4 points per dollar plus if you had the SPG amex card 2 points per dollar on hotel spending for total earning of 6 SPG points per dollar or 18 Marriott points per dollar. With Marriott at 75 nights its 23.5 points per dollar earning. At 50 nights it was 3 SPG points plus 2 SPG point, thus 15 Marriott points. Now 50 night earn 15 points plus 6 points for 21 points. Those are significant earrings increases on hotel spending

Welcome bonus not as good, MAGC not as good. Have to look at the whole situation.

It would be nice if they do, and they may have to if things don’t pick up. But rates will be down for a while.

I doubt that point rates will be cheaper, it will be the same rate if not higher.

They have no incentive to reduce points. I’m lifetime titanium and kinds of regret it