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Massive, unannounced devaluation of airline conversion rates

Massive, unannounced devaluation of airline conversion rates

Old Jul 1, 13, 7:48 am
  #1  
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Exclamation Massive, unannounced devaluation of airline conversion rates

Was this advance notified/warned?
Is it a website goof or genuine?

http://www.ukpoints.com/2013/07/01/h...thout-warning/

Quite a big cut, slash in fact:
100k CC > 18k airline before
100k CC > 10k airline now

I'm hoping this is just a website goof, the bands make no sense if all at same rate.
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Old Jul 1, 13, 8:00 am
  #2  
 
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Looks like it's true. From the CC website:

Redeem your Gold Points® for miles with over 20 airline partners.
Points Airline Exchange
2,000 points 200 miles/points
50,000 points 5,000 miles/points
100,000 points 10,000 miles/points

Redeem points for airline miles.

Select your airline program below
Enter your frequent flyer number
Enter the quantity of point increments you want to redeem for miles.

Note: Redemption options may vary by airline. Miles may take 4-6 weeks to post to your frequent flyer account.
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Old Jul 1, 13, 8:16 am
  #3  
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And so it begins.
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Old Jul 1, 13, 9:12 am
  #4  
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Previously it was 5.55 CC > 1 Airline mile, not 10 CC > 1 Airline mile.
Virtually doubled overnight.

And to think they were selling CC points by the bucket load last week on flash sales. Waiting for people to start claiming the infamous American line of 'bait switch'. But we don't need to descend to that level.

Simply for a change to a loyalty programme, all airline partners be cut in value overnight. Pathetic.
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Old Jul 1, 13, 10:11 am
  #5  
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Originally Posted by David-A View Post
Previously it was 5.55 CC > 1 Airline mile, not 10 CC > 1 Airline mile.
Virtually doubled overnight.
Previously, you got better deal the more points you converted. I had the old chart saved:

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Old Jul 1, 13, 10:35 am
  #6  
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Yes the old chart was the rates I quoted at the best point - 100k.

5.55:1 yesterday
10:1 today
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Old Jul 1, 13, 12:18 pm
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the current value of my cc points is supported by the credit cards, not via hitel conversion. so. hope things wont change so fast on the other side.
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Old Jul 1, 13, 12:24 pm
  #8  
 
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Unacceptable from ClubCarlson. They should inform their customers BEFORE implementing the changes. I contacted their customer service to stress exactly that point even though I know it won't help one bit.
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Old Jul 1, 13, 12:39 pm
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Those sneaky dirty .......s... even HHonors didnt do that with their infamous devaluation... they should give members at least some time to decide... but no... overnight change... and only days after flash sale... dirty .......s...
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Old Jul 1, 13, 12:43 pm
  #10  
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Originally Posted by pbd456 View Post
the current value of my cc points is supported by the credit cards, not via hitel conversion. so. hope things wont change so fast on the other side.
Sudden, no-advance notice major devaluations don't bode well for the loyalty program currency's store of value. Cost-cutting mode doesn't start up just so it can suddenly stop for no reason.
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Old Jul 1, 13, 2:12 pm
  #11  
 
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They did this without any advance notice! Or without any notice at all!
Originally Posted by David-A View Post
Was this advance notified/warned?
Is it a website goof or genuine?

http://www.ukpoints.com/2013/07/01/h...thout-warning/

Quite a big cut, slash in fact:
100k CC > 18k airline before
100k CC > 10k airline now

I'm hoping this is just a website goof, the bands make no sense if all at same rate.
milaohu is offline  
Old Jul 1, 13, 2:34 pm
  #12  
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Originally Posted by GUWonder View Post
Sudden, no-advance notice major devaluations don't bode well for the loyalty program currency's store of value. Cost-cutting mode doesn't start up just so it can suddenly stop for no reason.
Absolutely. They changed the award categories of few properties last year unannounced mid year and then they released the changes this year four/five days before and never emailed anything to CC members.
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Old Jul 1, 13, 3:08 pm
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Thumbs down

Trying hard to hold to "If it looks too good to be true, then it must be." But really, like the 66.66% devaluation of most of the lowest tier with four days notice - 9,000 to 15,000 points over a weekend - it really does approach bait & switch, and a shame.
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Old Jul 1, 13, 3:19 pm
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Isn't it great to have credit cards flooding the hotel points currency market and devaluing the points?

Just seven months to seriously dilute one of Club Carlson's strongest program advantages with points to miles transfer exchange rates now going to a simple 10 points = 1 mile. That is a 44% devaluation without any warning to members.

At least the hotel reward rates have not increased. Yet.
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Old Jul 1, 13, 3:24 pm
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Originally Posted by Firewind View Post
Trying hard to hold to "If it looks too good to be true, then it must be." But really, like the 66.66% devaluation of most of the lowest tier with four days notice - 9,000 to 15,000 points over a weekend - it really does approach bait & switch, and a shame.
I don't know exactly all what to make of what they are doing here.

Club Carlson still seems to be haunted by the spirit that destroyed the value in Club Carlson's predecessor "loyalty" program -- a spirit which damaged customer relations. That customer-unfriendly spirit may have been reincarnated with the incarnation of the Club Carlson program despite the hopes that it may have been exorcised with the program transition. This situation seems rather unfortunate given the reincarnated program had inspired hopes that seemingly will be increasingly dashed by such sudden, customer-unfriendly moves.

Originally Posted by satori View Post
Isn't it great to have credit cards flooding the hotel points currency market and devaluing the points?

Just seven months to seriously dilute one of Club Carlson's strongest program advantages with points to miles transfer exchange rates now going to a simple 10 points = 1 mile. That is a 44% devaluation without any warning to members.

At least the hotel reward rates have not increased. Yet.
I think that the credit card is not what advanced this devaluation as much as some other factors. The unfortunate thing is that whatever advanced this devaluation is likely to motivate another, bigger devaluation ... one that will almost certainly hit the hotel reward rates in a more substantial way.
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