SPECULATION: Is a Points Devaluation Coming In August?
#106
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,357
This kind of thinking is akin to suggesting that things are really cheap in the UK because they don't cost a lot of pounds. 30K points at 5 points per dollar is identical to 90K points at 15 points per dollar.
Some perspective for those of you who are freaking out about the category numbers. I promise you that, while there are a lot of things property managers think about, the specific category number in the rewards program isn't one of them. They may care about the reimbursement rate, the availability requirements, and the ratio of award guests to paying guests -- and maybe even the number of points needed to redeem an award, but they don't care if they're "Category 5" or "Category 6."
People who are blindly assuming that "Marriott Category 8" hotels must be "Category 8" in the new system aren't thinking this all the way through.
Here is the actual list of categories in the current program, counting the 3:1 SPG:MR ratio, and ignoring PointSavers, weekend discounts at SPG Category 1 & 2, and the lower end of the range for SPG Category 5-7:
Some perspective for those of you who are freaking out about the category numbers. I promise you that, while there are a lot of things property managers think about, the specific category number in the rewards program isn't one of them. They may care about the reimbursement rate, the availability requirements, and the ratio of award guests to paying guests -- and maybe even the number of points needed to redeem an award, but they don't care if they're "Category 5" or "Category 6."
People who are blindly assuming that "Marriott Category 8" hotels must be "Category 8" in the new system aren't thinking this all the way through.
Here is the actual list of categories in the current program, counting the 3:1 SPG:MR ratio, and ignoring PointSavers, weekend discounts at SPG Category 1 & 2, and the lower end of the range for SPG Category 5-7:
- Marriott Category 1: 7,500
- SPG Category 1: 9,000
- Marriott Category 2: 10,000
- SPG Category 2: 12,000
- Marriott Category 3: 15,000
- Marriott Category 4: 20,000
- SPG Category 3: 21,000
- Marriott Category 5: 25,000
- Marriott Category 6 / RC Tier 1 / SPG Category 4: 30,000
- Marriott Category 7: 35,000
- Marriott Category 8 / RC Tier 2: 40,000
- Marriott Category 9: 45,000
- SPG Category 5: 48,000
- RC Tier 3: 50,000
- RC Tier 4: 60,000
- RC Tier 5: 70,000
- SPG Category 6: 75,000
- SPG Category 7: 105,000
#107
Join Date: Dec 2016
Location: WAW
Programs: A3(*G), Marriott Platinum, Hilton Diamond, IHG Diamond Ambassador
Posts: 2,534
Again, what property is going from 45K to 95K for the same room? As no definition of what properties will fall into what categories is available, I'll be fascinated to see how this data exists.
There's not even a 95K amount on the chart, so how will any room be 95K per night, regardless of previous rate?
#108
Suspended
Join Date: Jun 2005
Programs: Delta Diamond, Marriott Ambassador & Lifetime Titanium, Hertz President's Circle, United Silver
Posts: 6,334
This kind of thinking is akin to suggesting that things are really cheap in the UK because they don't cost a lot of pounds. 30K points at 5 points per dollar is identical to 90K points at 15 points per dollar.
Some perspective for those of you who are freaking out about the category numbers. I promise you that, while there are a lot of things property managers think about, the specific category number in the rewards program isn't one of them. They may care about the reimbursement rate, the availability requirements, and the ratio of award guests to paying guests -- and maybe even the number of points needed to redeem an award, but they don't care if they're "Category 5" or "Category 6."
People who are blindly assuming that "Marriott Category 8" hotels must be "Category 8" in the new system aren't thinking this all the way through.
Here is the actual list of categories in the current program, counting the 3:1 SPG:MR ratio, and ignoring PointSavers, weekend discounts at SPG Category 1 & 2, and the lower end of the range for SPG Category 5-7:
Some perspective for those of you who are freaking out about the category numbers. I promise you that, while there are a lot of things property managers think about, the specific category number in the rewards program isn't one of them. They may care about the reimbursement rate, the availability requirements, and the ratio of award guests to paying guests -- and maybe even the number of points needed to redeem an award, but they don't care if they're "Category 5" or "Category 6."
People who are blindly assuming that "Marriott Category 8" hotels must be "Category 8" in the new system aren't thinking this all the way through.
Here is the actual list of categories in the current program, counting the 3:1 SPG:MR ratio, and ignoring PointSavers, weekend discounts at SPG Category 1 & 2, and the lower end of the range for SPG Category 5-7:
- Marriott Category 1: 7,500
- SPG Category 1: 9,000
- Marriott Category 2: 10,000
- SPG Category 2: 12,000
- Marriott Category 3: 15,000
- Marriott Category 4: 20,000
- SPG Category 3: 21,000
- Marriott Category 5: 25,000
- Marriott Category 6 / RC Tier 1 / SPG Category 4: 30,000
- Marriott Category 7: 35,000
- Marriott Category 8 / RC Tier 2: 40,000
- Marriott Category 9: 45,000
- SPG Category 5: 48,000
- RC Tier 3: 50,000
- RC Tier 4: 60,000
- RC Tier 5: 70,000
- SPG Category 6: 75,000
- SPG Category 7: 105,000
#109
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Join Date: Jun 2005
Programs: Delta Diamond, Marriott Ambassador & Lifetime Titanium, Hertz President's Circle, United Silver
Posts: 6,334
#110
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,357
I don't think this is a fair comparison because most of the hotels that folks want to redeem points for stays probably fall between Marriott category 7 and Ritz-Carlton tier 5, so 35,000 to 70,000 points per night. Yes, there are a bunch of good Marriott, Renaissance and J.W. Marriott properties in Asia and elsewhere that can occasionally fall into a much, much lower category but I don't think the vast majority of Marriott Rewards customers are redeeming points for a category 1-4 property.
Besides, that's completely irrelevant to the question of how they're going to be combining the charts. The people who are most freaked out about this are assuming that "Marriott Category 7" means "Combined Category 7" and "Marriott Category 8" means "Combined Category 8." I think it's far more likely that most Marriott Category 7 hotels end up in Combined Category 5 -- 35K points per night -- and Marriott Category 8 and 9 hotels get split between 5, 6, and maybe 7.
Look, it's not like this is some unique opportunity for Marriott. They could have created a Category 10 years ago if they wanted, or they could have made Category 9 worth 60K points per night when it was introduced. They didn't do these things, not because they used to be kind but now are mean, but because it didn't meet their business goals. So, if being at 35K got them the number of redemptions they wanted before, it's likely that they'll keep a property at 35K. They're certainly not going to raise a redemption rate from 35K to 60K just because the category number matches. By the same token, SPG Category 5 properties are more likely to end up in Combined Category 6 than Combined Category 5, even though the category number is different. (And RC Tier 1 properties certainly won't end up in Combined Category 1!)
#111
FlyerTalk Evangelist
Join Date: May 2002
Location: Pittsburgh
Programs: MR/SPG LT Titanium, AA LT PLT, UA SLV, Avis PreferredPlus
Posts: 30,987
#112
FlyerTalk Evangelist
Join Date: May 2002
Location: Pittsburgh
Programs: MR/SPG LT Titanium, AA LT PLT, UA SLV, Avis PreferredPlus
Posts: 30,987
If that's why people are yelling "massive devaluation!" - because they see the phrase "Category 7" and assume that means it's just a new points level for existing Cat 7, and no property categories will change....
Wow.
(But that must mean RC's that are a 5 are going to be a super duper cheap bargain at the new 5 level.)
Wow.
(But that must mean RC's that are a 5 are going to be a super duper cheap bargain at the new 5 level.)
#113
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Join Date: Jun 2005
Programs: Delta Diamond, Marriott Ambassador & Lifetime Titanium, Hertz President's Circle, United Silver
Posts: 6,334
You're a fool if you think otherwise.
#114
Join Date: Oct 2010
Location: Temecula, Ca.
Programs: Marriott Lifetime Platinum Elite, SPG Platinum
Posts: 273
I stayed at the St Regis Bora Bora. It was over 110,000 a night with Starpoints
Last edited by Wisdom; Apr 19, 2018 at 4:07 pm Reason: Wrong total
#115
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,357
If it makes sense for them to be 60K (or 95K!) on January 1, 2019, it made sense for them to be 60K (or 95K!) on January 1, 2018 or January 1, 2015. Marriott didn't need to wait for a program merger to do this. They could have done it anytime.
Marriott hid categories 10, 11, and 12 in their old program by calling them RC Tier 3-5. You're ignoring that, as well as the top SPG tiers, when you make these "almost certain" claims. If they put Marriott Category 8/9 redemptions into the same categories as SPG Category 6/7 and RC Tier 4/5... well, there aren't going to be an awful lot of top-end Marriott redemptions, are there?
#116
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Join Date: Jun 2005
Programs: Delta Diamond, Marriott Ambassador & Lifetime Titanium, Hertz President's Circle, United Silver
Posts: 6,334
It looks like the lowest paid rates are around $900-ish a night, according to a quick search. The highest rates I saw were around $3,000 a night. For that price, the St. Regis butler better wipe my butt.
If I really wanted to stay there I'd pay the lowest paid rate to get the points that come with it.
#117
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Join Date: Jun 2005
Programs: Delta Diamond, Marriott Ambassador & Lifetime Titanium, Hertz President's Circle, United Silver
Posts: 6,334
Because I suspect they think they can get it. I think 45,000 points a night (let alone some of the paid rates) for the Marriott County Hall or these are category 8 properties is insane. But the reality is people pay because of location. It's like the Marriott and Ritz-Carlton properties on St. Thomas that were destroyed by the hurricanes in September 2017. From what I understand, they had the most award redemptions of any Marriott or Ritz-Carlton property.
#118
Join Date: Oct 2010
Location: Temecula, Ca.
Programs: Marriott Lifetime Platinum Elite, SPG Platinum
Posts: 273
If my math is right that's 330,000 Marriott points per night. I'd never pay that, but I've lived on an island in the Pacific.
It looks like the lowest paid rates are around $900-ish a night, according to a quick search. The highest rates I saw were around $3,000 a night. For that price, the St. Regis butler better wipe my butt.
If I really wanted to stay there I'd pay the lowest paid rate to get the points that come with it.
It looks like the lowest paid rates are around $900-ish a night, according to a quick search. The highest rates I saw were around $3,000 a night. For that price, the St. Regis butler better wipe my butt.
If I really wanted to stay there I'd pay the lowest paid rate to get the points that come with it.
#119
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,357
Because I suspect they think they can get it. I think 45,000 points a night (let alone some of the paid rates) for the Marriott County Hall or these are category 8 properties is insane. But the reality is people pay because of location. It's like the Marriott and Ritz-Carlton properties on St. Thomas that were destroyed by the hurricanes in September 2017. From what I understand, they had the most award redemptions of any Marriott or Ritz-Carlton property.
If they put the top JWs and full-service Marriotts into the same categories as the St. Regis / Ritz Carlton / Luxury Collection / Design / etc., the number of redemptions there will drop precipitously, because, all things being equal, most travelers will elect the upscale properties. Why would Marriott want to do that?
If they can get 60K for Marriott Category 7 hotels, they can probably get 150-200K for SPG Category 7... and yet there's no such redemption level on the chart.
#120
Join Date: Nov 2014
Location: Somewhere
Posts: 1,178
Redeeming on high-end SPG properties
Here's my guess, SPG properties currently priced more than 85k MR (standard cost for cat 8 starting in Aug) will only be redeemable using points plus cash. Marriott will do this by either blocking availability on standard rooms which leaves you with nonstandard room or suites that can only be redeemed with additional cash, or they can create a list of high-end properties exempted from standard room redemption. I think it's safe to assume that StR Volmulli, W Maldives, Prince de Galles, and the likes will be assigned to cat 8. But since standard rooms will be blocked, you can only redeem nonstandard or suites using 70-100k points plus cash.
Last edited by zoqfotpik; Apr 19, 2018 at 5:16 pm