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Which program is best for accumulation of reward nights???

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Which program is best for accumulation of reward nights???

 
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Old May 1, 2008 | 4:23 pm
  #1  
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Which program is best for accumulation of reward nights???

Long time coming but I finally did some analysis on point accumulation and how they convert. I am curious to feedback and what I am missing.

Assumptions:
1 night stay @$200
Have credit card for pariticipating hotel and use it reguarly

Hilton - I am a Gold member
10x on base rate + 1.75x bonus points --> 3500 points!
500 bonus points for booking with credit card online/stay
Average of 3:1 on dollars spent on credit card ($4k/month) --> 12,000 points!
4 stays/month yields me around 28k points/month

Starwood - I am a Platinum Member
2x on base rate + 50% bonus points --> 600 points
1 point/$ spent on credit card ($4k/month) --> 4000 points
4 stays/month yields me around 6400 points/month

Marriott - I am a Silver Member
1x on base rate + 20% bonus points --> 240 points
Average of 2:1 on credit card spend ($4k/month) --> 8000 points
4 stays/month yields me around 9000 points/month

For a mid grade hotel Starwood is a 10k point reward per night, while Hilton is 30k, and Marriott is 25k.

My conclusion from this is Hilton edges out Starwood at .93 reward nights per month vs. .64 reward nights per month. However Platinum status on Starwood is more easily obtained and the perks are nicer so that is why I go that route whenever I can. What I have concluded from this is that I need to ditch Marriott as my second choice and start falling back on Hilton when I can as Marriott only rewards me .36 nights/month.

Comments and debate are welcome.
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Old May 1, 2008 | 4:32 pm
  #2  
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Shouldn't your Marriott stays have 10x as the base rate? (Assuming you're not staying at RI or TPS.)
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Old May 1, 2008 | 5:00 pm
  #3  
 
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Being a Platinum at Marriott will change your numbers quite a bit.

For example, if you use the Marriott Visa and are Platinum, you will end up getting 18 points/$ spent.

So on your stays, you would earn 14,400 points.

On your credit card, you would earn about 4800 points. That's $4000- the $800 on hotel stays that was already accounted for above, leaving $3200 x avg. of 1.5 points/$, earning 4800 points.

Since you are platinum, you could also get 2000 extra points a month as your arrival gifts.

That's a total of 21,200 points. A mid tier marriott reward stay (cat 3) costs 15,000 points (25,000 is for a cat 5). So the earned free nights per month would be 1.4 nights a month under this scenario, vs. the .64 nights a month you calculated. That would also be way better than Hilton's .93 nights a month and Starwood's .64 nights a month (where you already are platinum).

Having status and using that brand's credit card changes the entire equation.
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Old May 1, 2008 | 5:11 pm
  #4  
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Originally Posted by VA1379
Shouldn't your Marriott stays have 10x as the base rate? (Assuming you're not staying at RI or TPS.)
Hmmm, not sure how I missed that. So the corrected assumptions then are below,

Assumptions:
1 night stay @$200
Have credit card for pariticipating hotel and use it reguarly

Hilton - I am a Gold member
10x on base rate + 1.75x bonus points --> 3500 points!
500 bonus points for booking with credit card online/stay
Average of 3:1 on dollars spent on credit card ($4k/month) --> 12,000 points!
4 stays/month yields me around 28k points/month

Starwood - I am a Platinum Member
2x on base rate + 50% bonus points --> 600 points
1 point/$ spent on credit card ($4k/month) --> 4000 points
4 stays/month yields me around 6400 points/month

Marriott - I am a Silver Member
10x on base rate + 20% bonus points --> 2400 points
Average of 2:1 on credit card spend ($4k/month) --> 8000 points
4 stays/month yields me around 17,600 points/month

For a mid grade hotel Starwood is a 10k point reward per night, while Hilton is 30k, and Marriott is 25k.

Hilton - .93 rewards/month
Starwood - .64 rewards/month
Marriott - .70 rewards/month

Kinda makes my Starwood favortism look like a poor choice other than being able to obtain Platinum status quicker since 25 stays is more likely for me than 50 nights as I tend to do a night or two a week.
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Old May 1, 2008 | 5:15 pm
  #5  
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Originally Posted by PourMeAnother
Being a Platinum at Marriott will change your numbers quite a bit.
Yikes, that's 75 nights a year and a bit out of reach, I hope, for me. Any data on Gold benefits?
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Old May 1, 2008 | 5:29 pm
  #6  
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Gold members get most of what platinum has without the welcome platinum gift and the platinum override for a sold out hotel within 48 hours. The points bonus is smaller, 25 % versus 30 %.

The main benefit is concierge lounge access on weekdays or free continental breakfast at full service properties, excluding resort properties. Many properties also give free breakfast on weekends when lounges are closed.

EEOs are also given out to gold members, which are buy one get one free coupons for rooms and meals at Marriott and Renaissance properties. Exemptions apply, and they are good mainly at US properties, with a few international ones as well. These are given out 3 times a year. You can print one copy online and use another copy mailed out to members.

Also, the Marriott Premier card gives 15 nights elite credit a year. This is available to US residents, and it drops the night requirements to 35 for gold and 60 for platinum.
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Old May 1, 2008 | 5:30 pm
  #7  
 
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Originally Posted by scotthoughton
Yikes, that's 75 nights a year and a bit out of reach, I hope, for me. Any data on Gold benefits?
Gold gets you 25% bonus points so you would net 17.5 points per $ when using the marriott premier visa card. you would also get 15 nights credit toward elite status. the major difference between gold and plat is the plat arrival gift (which could be points) and the plat override guarantee to get a room when the hotel is full. more details here

Last edited by damon2; May 1, 2008 at 5:33 pm Reason: VA1379 wins again. Damn typos and my slow typing.
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Old May 1, 2008 | 6:17 pm
  #8  
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Originally Posted by PourMeAnother
Being a Platinum at Marriott will change your numbers quite a bit.

For example, if you use the Marriott Visa and are Platinum, you will end up getting 18 points/$ spent.

So on your stays, you would earn 14,400 points.

On your credit card, you would earn about 4800 points. That's $4000- the $800 on hotel stays that was already accounted for above, leaving $3200 x avg. of 1.5 points/$, earning 4800 points.

Since you are platinum, you could also get 2000 extra points a month as your arrival gifts.

That's a total of 21,200 points. A mid tier marriott reward stay (cat 3) costs 15,000 points (25,000 is for a cat 5). So the earned free nights per month would be 1.4 nights a month under this scenario, vs. the .64 nights a month you calculated. That would also be way better than Hilton's .93 nights a month and Starwood's .64 nights a month (where you already are platinum).

Having status and using that brand's credit card changes the entire equation.
Originally Posted by damon2
Gold gets you 25% bonus points so you would net 17.5 points per $ when using the marriott premier visa card. you would also get 15 nights credit toward elite status. the major difference between gold and plat is the plat arrival gift (which could be points) and the plat override guarantee to get a room when the hotel is full. more details here

I have the Platinum credit card but did not realize it gives you 15 nights/year, I thought it was only a one time thing ... good to know! I am leaning more and more towards striving for Gold on Marriott. That was my original plan at the beginning of the year but got sidetracked into obtained Platinum again on Starwood as they are running a double stay promo for a few months.
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Old May 1, 2008 | 7:30 pm
  #9  
 
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I hope you were aware of the spring mega bonus which could have net you 50K points for 25 nights between Feb 15 and May 15. there are other variations of the megabonus.

If you have a bunch of nights coming up, its still worth a try.
details here
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Old May 1, 2008 | 7:36 pm
  #10  
 
Join Date: Sep 2007
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Originally Posted by scotthoughton
I have the Platinum credit card but did not realize it gives you 15 nights/year, I thought it was only a one time thing ... good to know! I am leaning more and more towards striving for Gold on Marriott. That was my original plan at the beginning of the year but got sidetracked into obtained Platinum again on Starwood as they are running a double stay promo for a few months.
you mean the premier visa card. They now have a sign up bonus of 25K
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Old May 1, 2008 | 9:25 pm
  #11  
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Originally Posted by scotthoughton
Hilton - .93 rewards/month
Starwood - .64 rewards/month
Marriott - .70 rewards/month

Kinda makes my Starwood favortism look like a poor choice other than being able to obtain Platinum status quicker since 25 stays is more likely for me than 50 nights as I tend to do a night or two a week.
I've done similar valuation comparisons and a lot of it comes down to assumptions:
Which credit card you want to have
What elite level you can reasonably achieve (and the resulting bonus)
What add ons you take advantage of (like HH's My Way, etc)
Promos

I basically concluded that for my particular spend and stay patterns Hilton gives me the best return, unless MR is running a Megabonus type of promo. With the Megabonus points MR beats out HH for reward value per $ spent with my particular assumptions.

Also, with my stay patterns it would be extremely difficult to get to Plat with MR (even with the 15 nights from my Visa), but Diamond on HH is reliably in reach for me.

In fairness, I didn't really include SPG in my calculations because they don't have enough properties in the places I need to stay.
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Old May 1, 2008 | 11:04 pm
  #12  
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One HUGE FLAW in the above calculations is that it ignores the redemption rates for a given property/category.

Hilton may offer more earnings opportunities but it typically requires more points per night than Marriott. 10,000 points/night at a category 1 roadside Hampton (and yes, I've done it ) is no bargain.
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Old May 2, 2008 | 1:08 am
  #13  
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Check out the Do the Math! Starpoint Inflation Tanks their Value thread. There was quite a bit of math work done to compare the "redemption" value based on earning potentials of the main programs. You might find it enlightening.
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Old May 2, 2008 | 3:50 am
  #14  
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Originally Posted by PHLGovFlyer
I've done similar valuation comparisons and a lot of it comes down to assumptions:
Which credit card you want to have
What elite level you can reasonably achieve (and the resulting bonus)
What add ons you take advantage of (like HH's My Way, etc)
Promos

I basically concluded that for my particular spend and stay patterns Hilton gives me the best return, unless MR is running a Megabonus type of promo. With the Megabonus points MR beats out HH for reward value per $ spent with my particular assumptions.

Also, with my stay patterns it would be extremely difficult to get to Plat with MR (even with the 15 nights from my Visa), but Diamond on HH is reliably in reach for me.

In fairness, I didn't really include SPG in my calculations because they don't have enough properties in the places I need to stay.
Originally Posted by keeton
One HUGE FLAW in the above calculations is that it ignores the redemption rates for a given property/category.

Hilton may offer more earnings opportunities but it typically requires more points per night than Marriott. 10,000 points/night at a category 1 roadside Hampton (and yes, I've done it ) is no bargain.
Certainly true. As a part of my valuation I pretty much assumed that I was staying at higher end properties for longer duration stays (5 days+ using MR's longer stay charts and GLON stays with HH). Thats what I've done with about 90% of all the hotel points I've ever earned.

Frankly, if its 10k pts for a Hampton I'll probably just pay $$$ for it because the "value" for my points usually isn't there compared to using them at high end properties.
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Old May 2, 2008 | 4:23 am
  #15  
 
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In reading across all the FT (hotel) threads it appears that there is no one chain that offers the best point value on a mathematical basis at all times......

And without any math -

I like the MR program and believe that it rewards me fairly. My travel patterns allow me to make Plat - but just barely; so the option of having a back-up chain is really not open for me to any great extent. Since I feel Plat treatment far outweighs Gold - I will not drop back just to gain a lower or mid-tier status elsewhere.

But more importantly - I like Marriott. I like the variety of properties they offer, as I have found they each fit my needs for different types of "trips" - especially in personal use. I like the number of locations that they have - I don't think I have ever gone anywhere in the US that I could not stay in some type of Marriott property!

I spend 75+ nights a year in a hotel. I want to be comfortable and like where I am. YMMV, but for me, I have to count that into the "equation" somewhere.
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