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Massive, unannounced devaluation of airline conversion rates

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Massive, unannounced devaluation of airline conversion rates

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Old Jul 3, 2013, 9:32 pm
  #76  
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Originally Posted by PeterT1953
As craz put it so neatly, it is not a redemption like any other. It is not a part of carlsons core business. Airline redemptions are peripheral. And I am guessing this is an accounting decision.
Nonsense.

Airlines are a big part of the travel loyalty market place. You find plenty of people with strong airline loyalties, but limited hotel loyalties.

The hotels recognise this, that is why they all partner up with airlines.

Heck, even the copy and paste statement reply coming from Club Carlson acknowledges that airline redemption options are important.

They advertise this as a benefit of the programme.

Some kind of cost base change somewhere would be somewhat acceptable for a sudden rate change for a SINGLE airline programme, not for all of them across the board.


Anyone whose sole intention was to redeem for avios and who has stored up more than 100k points is a bit of a plonker!
What about those people who had just recached 100k?
What about those people steadily earning, on their way to 100k, and well over 50k?

Up until a few days ago they could get 8k for their 50k of CC, or 18k for 100k of CC. If they were earning steadily it made sense to save higher - if they didn't need the miles fast.

Now, their 50k is only getting them 5k not 8k.

Additionally, people might have been waiting for a couple of months until they were ready to book their trip, then they would transfer them into the scheme of their choice for that trip.

Personally, I wonder if someone who makes a daft comment like that is a bit of a plonker!
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Old Jul 3, 2013, 11:47 pm
  #77  
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Originally Posted by David-A
Nonsense.

Airlines are a big part of the travel loyalty market place. You find plenty of people with strong airline loyalties, but limited hotel loyalties.

The hotels recognise this, that is why they all partner up with airlines.

Heck, even the copy and paste statement reply coming from Club Carlson acknowledges that airline redemption options are important.

They advertise this as a benefit of the programme.

Some kind of cost base change somewhere would be somewhat acceptable for a sudden rate change for a SINGLE airline programme, not for all of them across the board.




What about those people who had just recached 100k?
What about those people steadily earning, on their way to 100k, and well over 50k?

Up until a few days ago they could get 8k for their 50k of CC, or 18k for 100k of CC. If they were earning steadily it made sense to save higher - if they didn't need the miles fast.

Now, their 50k is only getting them 5k not 8k.

Additionally, people might have been waiting for a couple of months until they were ready to book their trip, then they would transfer them into the scheme of their choice for that trip.

Personally, I wonder if someone who makes a daft comment like that is a bit of a plonker!
I cant believe that some folks actually were collecting CC pts in in order to transfer to an Airline program. 100k as you said was 18k they cant even get a Domestic tkt for that its apx 70% of the needed miles. Yet they could cash in for 2 nights at a top CC hotel and if they have the CC of CC they get the 3rd night free. Thats gonna be worth a heck of alot more then any Y domestic saver tkt

To me at least its as if Marriott or any Airline raised the amount of miles /pts you need to get stuff from their merchandise catalog. Im sure there are people out there that use their miles/pts to get stuff. But its not the core redemption its a minor one.

I understand to some its the Principle

Last edited by craz; Jul 7, 2013 at 9:41 am
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Old Jul 4, 2013, 12:47 am
  #78  
 
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Originally Posted by craz
I cant believe that some folks actually were collecting CC pts in onlin order to transfer to an Airline program. 100k as you said was 18k they cant even get a Domestic tkt for that its apx 70% of the needed miles.
I can't believe that a FlyerTalker with such a prodigious posting history equates airline miles accumulation with redemption of domestic economy tickets on a US airline. The first thing FT taught me was that there are far more lucrative ways to use miles.

And do you think CC would be slashing the conversion rate if this wasn't a popular redemption? Just because it isn't your preferred redemption doesn't mean it's an illogical choice for others.
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Old Jul 4, 2013, 1:27 am
  #79  
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Let's keep this discussion civil! Please refrain from personal attacks and name calling.

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Old Jul 4, 2013, 3:33 am
  #80  
 
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non US club carlson members are hurting. for US people, i believe the value of club carlson points is maximized when redeeming for 2 night stay.

for those buying points recently during the flash sale, that is 0.4 cent per miles with 5.5 points for 1 miles, so this is like over 2.2 cent per miles which is not really a great deal anyways. i find it hard to believe a lot of people were buying during the flash sale with expectation for conversion! (yes, i am too cheap.)
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Old Jul 4, 2013, 4:13 am
  #81  
 
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Originally Posted by pbd456
non US club carlson members are hurting. for US people, i believe the value of club carlson points is maximized when redeeming for 2 night stay.

for those buying points recently during the flash sale, that is 0.4 cent per miles with 5.5 points for 1 miles, so this is like over 2.2 cent per miles which is not really a great deal anyways. i find it hard to believe a lot of people were buying during the flash sale with expectation for conversion! (yes, i am too cheap.)
If you add the value of flexibility (hotel night or AA, UA, BA miles) and add the expectation of the occasional transfer bonus 2.22 cent per mile is pretty good, especially outside the US.
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Old Jul 4, 2013, 6:57 am
  #82  
 
Join Date: Jul 2013
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Wink I've been such a plonker

I'll own up to being one of those plonkers who joined with the idea of converting all my CC points to airline miles. For my travel pattterns, I don't see much value in redeeming for hotel stays, but appreciate that others do get great value redeeming for stays.

The very day I hit 100k CC points, I converted them Avios. So far, so good.
I then sat back and basked in the glory of my ever-increasing CC balance.

Between my earning the next 100k and the recent devaluation, 20 days elapsed. So sloppy of me to have delayed so long in making my next conversion.

Lesson learnt.
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Old Jul 4, 2013, 7:57 am
  #83  
 
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From all the enthusiastic discussions here it's apparent that some FTers did find good value in the conversion at the cost of 2.2 cpm with flexibility to choose from many airlines, especially those whose redemptions are distance-base.

Am I right to assume that in the pursuit of their favorite airline miles the conversion-minded FTers found the channel through Club Carlson either one of the cheapest or the easiest to accumulate large number of miles?

Now the damage is done and the old valuation no longer applies. I am curious whether the conversion is still worthwhile or is totally ruined by this devaluation.

Last edited by Neil35; Jul 4, 2013 at 8:01 am Reason: typo
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Old Jul 4, 2013, 8:52 am
  #84  
 
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Originally Posted by Neil35
From all the enthusiastic discussions here it's apparent that some FTers did find good value in the conversion at the cost of 2.2 cpm with flexibility to choose from many airlines, especially those whose redemptions are distance-base.

Am I right to assume that in the pursuit of their favorite airline miles the conversion-minded FTers found the channel through Club Carlson either one of the cheapest or the easiest to accumulate large number of miles?

Now the damage is done and the old valuation no longer applies. I am curious whether the conversion is still worthwhile or is totally ruined by this devaluation.
An interesting question.

Based on hotel spend, (everyhing else such as upgrades, breakfasts) being assumed to be equal, and using an average spend of Ł200 per stay, such a stay would net a CC gold member about 9500 points.

So 100,00 points would mean a spend of around Ł2100. This would have meant 18000 avios at the old rate (about 8.5 avios per Ł), and at the new rate it means 10000 avios (about 4.75 avios per Ł).

The only other programme I have experience of is Accor. That works out at about 3.35 avios per Ł for a gold member (assuming using Iberia plus rate).

Does anyone have calulations for other hotel programmes, on "avios per Ł" or "avios per $" basis?
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Old Jul 4, 2013, 12:44 pm
  #85  
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For those of you who wanted a CC, well welcome to the world of the other majors.. Every Hh, GP, MR, SPG member saw this one coming
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Old Jul 4, 2013, 1:28 pm
  #86  
 
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Originally Posted by TrojanHorse
For those of you who wanted a CC, well welcome to the world of the other majors.. Every Hh, GP, MR, SPG member saw this one coming
Exactly. And yet, at all the FlyerTalk DOs I attend these days, all the talk is about putting credit cards on hyper-drive, not about old-timey stay loyalty promos. Likewise, the opening pages of FlyerTalk - if you go in that way - and, of course, virtually all the bloggers. Something like drinking salt water.

Actually, some who put their faith and credit card spend on Carlson are approaching a million points. Well, actually that's what they've flowed. They're now pushing them out as fast as they can.

*****************
One wonders if this sudden switcheroo is a reflection of Carlson not seeing it coming. Nah...

Last edited by Firewind; Jul 4, 2013 at 1:44 pm
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Old Jul 5, 2013, 2:28 pm
  #87  
 
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I think it is terrible timing on Club Carlson's part. They have a flash sale and participate in the Daily Giveaways promo - and then the next week devalue their points? That is bait and switch if you ask me.

I participated in both the flash sale and daily giveaway. The only saving grace for me is that they haven't devalued hotel side (yet) and my plan was to redeem for free stays this summer/fall. Still, when I bought I was under the impression that if free stays weren't avail at the very least I could convert to airline miles at a decent if not great rate. And now that option is taken away (because the airline conversion rate is now absurd).

No notice and right after they take my money? Really poor form Club Carlson.
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Old Jul 6, 2013, 7:41 pm
  #88  
 
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Originally Posted by TravelinSperry
I think it is terrible timing on Club Carlson's part. They have a flash sale and participate in the Daily Giveaways promo - and then the next week devalue their points? That is bait and switch if you ask me.

I participated in both the flash sale and daily giveaway. The only saving grace for me is that they haven't devalued hotel side (yet) and my plan was to redeem for free stays this summer/fall. Still, when I bought I was under the impression that if free stays weren't avail at the very least I could convert to airline miles at a decent if not great rate. And now that option is taken away (because the airline conversion rate is now absurd).

No notice and right after they take my money? Really poor form Club Carlson.
A little dramatic...don't ya think?

To call this a bait and switch is laughable. Re-read what you were being offered: 50,000 points for a 1-night stay or 100,000 points for a 2-night stay. Both offerings clearly state that the points are for hotel redemption. You may have gotten burned by not being able to convert your points as planned, but CC held up their end of the bargain. A true B&S would be raising the 50,000 per night redemptions to 75,000 after advertising that you would be receiving 1/2 nights at any CC worldwide. As far as I can tell, you can get 2 or more nights with 100,000 points exactly as promised. They didn't devalue their points, they devalued the conversion rate to miles.

I think that there is a lot of faux outrage in this thread. If you are using CC points as a churning factory for airline miles, you need to read up on how the game is played more. Spending $385 to get 18,000 miles is hardly a steal sans topping off mileage for a high redemption award. Even then, you can get virtually the same rate when airlines have 50% - 100% matches when purchasing miles directly.
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Old Jul 7, 2013, 6:46 am
  #89  
 
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To my fellow FTers who complained about the timing of the devaluation of the conversion rate being shortly after the flash sale:

Did any of you actually buy a significant number of points during the most recent Club Carlson flash sale?
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Old Jul 7, 2013, 7:53 am
  #90  
 
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Originally Posted by Neil35
To my fellow FTers who complained about the timing of the devaluation of the conversion rate being shortly after the flash sale:

Did any of you actually buy a significant number of points during the most recent Club Carlson flash sale?
Yes. But I mostly complain about the lack of notice.
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