Travel packages are being discontinued: what about points to miles?
#1
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Travel packages are being discontinued: what about points to miles?
Marriott is discontinuing travel packages as of 19 Jan 2022. Will Marriott continue to allow movement of points to airlines? Right now, for every 60,000 points, we get 20,000 airline miles plus a 5,000 mile bonus. It's one of the only ways to top up miles in programs that do not have credit card transfer partners such as Chase Ultimate Rewards or AMEX Membership Rewards. Alaska Air is one example.
https://www.marriott.com/loyalty/red...ts-to-miles.mi
Does anyone have any insight as to whether this benefit will continue?
https://www.marriott.com/loyalty/red...ts-to-miles.mi
Does anyone have any insight as to whether this benefit will continue?
#2
FlyerTalk Evangelist
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Programs: UA 1K 1MM; Marriott LT Titanium; Amex MR; Chase UR; Hertz PC; Global Entry
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With the tight relationship between United, Marriott, and Chase...I would wager this continues.
Of course, always subject to them changing the rates of transfers.
Of course, always subject to them changing the rates of transfers.
#3
Moderator, Marriott Bonvoy & FlyerTalk Evangelist
Join Date: Oct 2002
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Just a guess on my part, but I see three issues with the TPs that might have pushed Marriott to get rid of them:
- Outsized benefit. While TPs aren't the pinnacle of hotel awards they once were, they still gave a sizeable benefit. Individually 7 nights at a Cat. 8 (standard points cost) would be 510K points plus 300K points for 110,000 United miles. This translates into 810K points cost where the TP only costs 750K points. And the benefit only gets better if the Cat 8 requires Peak pricing. Which leads to #2 below.
- With Off-Peak/Standard/Peak award pricing within a single category for most of this year (2022) and then to a more fully flexible award pricing from there, the whole TP structure around hotel category levels becomes unwieldy. Marriott would have to completely overhall how TPs awards would be priced or they just get rid of them.
- Also, Marriott's program used to be based off optimizing awards for 7 night stays. Their awards are really more optimized for 5 night stays now. So again, they need to overhall TP awards or just get rid of them.
#4
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The big thing putting the TPs on the cutting block: Marriott being cheap and aiming to go cheaper, even at the expense of customers.
Marriott probably wants to cut its costs of buying airline miles since the miles aren't getting cheaper for bulk-buying in an environment where the best prices go to the big-mile-buying banks but otherwise increase to some extent for other buyers. And what's most financially important for Marriott when it comes to points being redeemed? To reduce its expense per point redeemed by customers. My guess is that gutting the value of travel packages was likely only the first step en route to eliminating the travel packages. And in an environment of flexible points pricing for award nights, Marriott will probably not want to maintain a parallel -- but fixed award pricing -- system which is shrinking in customer utility as and because Marriott continues on the path away from fixed award pricing and on gutting the value of the TPs.
The points-to-miles conversion options will almost certainly outlive the TPs, but I expect that they will be on the cutting block to some extent too -- with worse transfer rates for more an more airlines and with some transfer options perhaps even being eliminated. Bonvoy is about going tres cheap.
Marriott probably wants to cut its costs of buying airline miles since the miles aren't getting cheaper for bulk-buying in an environment where the best prices go to the big-mile-buying banks but otherwise increase to some extent for other buyers. And what's most financially important for Marriott when it comes to points being redeemed? To reduce its expense per point redeemed by customers. My guess is that gutting the value of travel packages was likely only the first step en route to eliminating the travel packages. And in an environment of flexible points pricing for award nights, Marriott will probably not want to maintain a parallel -- but fixed award pricing -- system which is shrinking in customer utility as and because Marriott continues on the path away from fixed award pricing and on gutting the value of the TPs.
The points-to-miles conversion options will almost certainly outlive the TPs, but I expect that they will be on the cutting block to some extent too -- with worse transfer rates for more an more airlines and with some transfer options perhaps even being eliminated. Bonvoy is about going tres cheap.
#5
Join Date: Mar 2018
Location: England - UK
Posts: 512
Just to be clear, are we talking about the hotel and air packages?: https://www.marriott.co.uk/loyalty/r...el/packages.mi
First I've heard of it so thanks if it's so as can book up pronto.
First I've heard of it so thanks if it's so as can book up pronto.
#6
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Just to be clear, are we talking about the hotel and air packages?: https://www.marriott.co.uk/loyalty/r...el/packages.mi
First I've heard of it so thanks if it's so as can book up pronto.
First I've heard of it so thanks if it's so as can book up pronto.
https://www.flyertalk.com/forum/marr...19-2022-a.html
#7
Join Date: Mar 2018
Location: England - UK
Posts: 512
Yes, they are going away. Go to the end of this thread for discussion.
https://www.flyertalk.com/forum/marr...19-2022-a.html
https://www.flyertalk.com/forum/marr...19-2022-a.html
#9
Join Date: Dec 2008
Programs: UA 1K, Marriott Plat, Hilton Gold
Posts: 35
Pure speculation and call me alarmist: but I think they’ll be (bad) news on 1/19 overall. Some blogger said Marriott said that the communication of the elimination travel packages was a blunder (that it was just slipped into the terms and conditions of the program with no announcement). That makes me think there is broader news on 1/19 that could be effective immediately.
Again pure speculation. But I booked stuff to get down to <10000 points.
Again pure speculation. But I booked stuff to get down to <10000 points.
#10
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Arguably for those who want to redeem for hotel nights, redeeming points for TPs before the 19th could be considered a better use for the points than waiting to get hit by the devaluation that comes from a more "flexible pricing" redemption scheme that doesn't price award nights strictly along published category levels.
#12
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#14