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General Comments about Frequent Guest Programs

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Old May 8, 1998 | 11:55 am
  #1  
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General Comments about Frequent Guest Programs

I've found that it's smarter to keep my points with hotel programs than to automatically convert them to frequent flyer miles. I get more award choices but more importantly, I've been able to get an airline award from my hotel points when I couldn't get the same award from my airline miles.
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Old Jul 4, 2001 | 4:04 pm
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That's certainly good advice that all of us would do well to keep in mind!

Do I win?
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Old Jul 4, 2001 | 9:03 pm
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This is good advice for frequent travelers. The high point awards with the frequent guest programs represent better value. With Holiday Inn, the conversion rate to miles is better if you redeem for an airline ticket - which is done (on some airlines at least) by depositing 25K miles to your airline account. Similarly, the 713 award with Marriott is a very good value (though soon to be devalued).

The exception to this would be for someone who does not travel much and would like the miles right away, opposed to some unattainable hotel reward. Another exception would be for promotions like the recent NW or current AA promotion, where one gets bonus miles for getting certain number of partner transactions. Also Starwood has occasional promotions for airline direct deposit, where it may be beneficial to get airline miles rather than hotel points for the duration of the promotion.

[This message has been edited by PG (edited 07-04-2001).]
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Old Jul 5, 2001 | 1:38 am
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Old Jul 5, 2001 | 6:40 am
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I like Hilton where I get them both.
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Old Jul 5, 2001 | 7:08 am
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Its true that most conversions from hotel programs to airline miles are bad deals because of the terrible conversion rates. I almost never convert my hotel points this way because of the loss in value. The few exceptions are, of course, where the conversion will lead to more mile (e.g., the current AA promotion that requires 20 partners and a conversion counts as a partner transaction). However, Starwood points convert 1-to-1 to airline miles in most FF programs. Just one more reason Starwood is my favorite hotel frequent guest program.
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Old Jul 5, 2001 | 7:35 am
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<font face="Verdana, Arial, Helvetica" size="2">Originally posted by MileKing:
Its true that most conversions from hotel programs to airline miles are bad deals because of the terrible conversion rates. I almost never convert my hotel points this way because of the loss in value. The few exceptions are, of course, where the conversion will lead to more mile (e.g., the current AA promotion that requires 20 partners and a conversion counts as a partner transaction). However, Starwood points convert 1-to-1 to airline miles in most FF programs. Just one more reason Starwood is my favorite hotel frequent guest program.</font>
Just because Starwood is 1:1 and Holiday Inn is 4:1 does not means that Starwood is a better value. A Starwood gold/plat gets 25,000 airline miles for 20K pts ($6666 spent). With Holdiday Inn, a gold member gets 11 points per dollar, and 67,200 points convert to 25,000 AA miles. So to get 25,000 miles you need to spend $6109. And a platinum member at Holiday Inn needs to spend $5169.
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Old Jul 7, 2001 | 11:57 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by PG:
[...] A Starwood gold/plat gets 25,000 airline miles for 20K pts ($6666 spent). With Holdiday Inn, [...] to get 25,000 miles you need to spend $6109. And a platinum member at Holiday Inn needs to spend $5169.</font>
Important disclaimer: the calculations are re: stay-specific earnings only--i.e. sans potential affiliated partner point earning possibilities (including related promos), for which one does not necessarily earn points at the same stay-specific points-per-$ rate (i.e. it can be at a better rate, & thus equate to less $ spent per point earned).
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Old Jul 8, 2001 | 5:40 am
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I would echo and amplify on the points made in the last two posts. Around $1,800 in hotel bills has translated into more than 20,000 miles for me this year, with much of that attributable to promotions where the instaneous conversion to airline miles was key. No muss, no fuss and no orphan points.
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Old Jul 8, 2001 | 8:54 am
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QL,

i disagree with the point you're making, but the way you're making it gave me a good laugh. thanks for that.
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Old Jul 9, 2001 | 4:41 pm
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I'm with PG here. Starwood's 1:1 is overstated because you only earn 2 or 3 points per dollar. Whereas you can earn 10-15 points per dollar with Hilton, Holiday and Marriott.

Again, these are all based on points earned when staying at the hotel and not credit cards, etc.
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Old Jul 9, 2001 | 5:31 pm
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True PG....I wasn't considering dollars spent to conversion value. I was simply looking at raw conversion ratio and what the value of the points/miles provided in their original form are vs. their converted form. If you look at what 67,000 Holiday Inn points can get you from HI in free hotel nights, my bet is that it is worth more than what the conversion to 25,000 airline miles would provide.

You are correct with the examples you give, but things are never that simple. As others mention, credit card and bonus earnings can drastically alter the $ spent to achieve a particular point/mile level.
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Old Jul 9, 2001 | 6:39 pm
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Anyone have any comments on the following observation:

"While we understand the attraction of the offer of miles and points for the same stay, please note the following advantages of the Starwood Preferred Guest program when it comes to earning frequent flyer miles: first, that HHonors points transfer to frequent flyer programs at a ratio of 10,000 to 1,500, while Starpoints transfer at a ratio of 1 to 1 (or 10,000 to 10,000!). So one Starpoint is actually worth more than 6 HHonors points in this respect. On top of that, when you transfer 20,000 or more Starpoints to one of our airline partners, we transfer a 5,000 mile bonus with it - for a total credit of 25,000 miles to your frequent flyer account.

Our program also offers other benefits that are unmatched in the industry: for example, the fact that there are no blackout dates or capacity controls on Preferred (free) Night Awards."

Just curious,

William R. Sanders
Specialist, E-Communications Department
Starwood Hotels & Resorts Worldwide

[email protected]
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Old Jul 9, 2001 | 8:34 pm
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Starwood Lurker, here are my comments:

1) Yes 1 Starwood Preferred Guest Point = 6 HHonors points BUT you earn 10 Hhonors points for every $ (versus 2 for every $1 i SPG)!
2) In addition, you would earn 500 airline miles with HHonors!

So by my math a member of either program staying 3 nights at an average of $150 a night would earn:

HHonors - 4500 HHonors Points AND 500 miles
SPG - 900 SPG Points

What am I missing?
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Starwood Lurker:
Anyone have any comments on the following observation:

"Our program also offers other benefits that are unmatched in the industry: for example, the fact that there are no blackout dates or capacity controls on Preferred (free) Night Awards."

Just curious,

William R. Sanders
Specialist, E-Communications Department
Starwood Hotels & Resorts Worldwide

[email protected]
</font>


[This message has been edited by dguruswamy (edited 07-09-2001).]
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Old Jul 9, 2001 | 8:58 pm
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Looks like Hilton has the edge although not as much as the 3 nights at $150/night example stated. For apples to apples comparison, lets convert the hotel points to miles.

And, a SPG member earns 2 points per dollar (3points/$ for Au, Pt) at a Starwood hotel so 3 nights at $150/night is 900 SPG points (1350 for elite). This is 900 (or 1125 miles if xfer 20K points with 5K bonus, or 1687 for elites).

If exchanging 50K points, the Hilton earnings of 4500 points and 500 miles for the 3 nights at $150/night is 4500/5=900 miles + 500 miles, or 1400 miles. If not exchanging 50K miles, the conversion of 4500 points gives only 675 miles which plus the 500 double dip miles totals 1175 miles.

A SPG elite however, would come out ahead at a Starwood hotel for this example. Hilton comes out ahead mainly because of the 500 mile double dip. If the hotel bill is very high because of a long stay (or because the rate is very high!), then the SPG points will overtake Hilton because the 500 Hilton double dip miles become a smaller part of the total.

One could setup a spreadsheet to do all these calculations and figure out which is better for any stay given the room rates and duration.

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