Mike FriedmanHotel Loyalty Programs
Hotel rewards programs tend to be more generous than their airline brethren, mostly because they have to be.
Previously, we covered the basics of the four US airlines frequent-flier programs. Today, we’ll turn to hotels. Like the airlines, each of these hotel loyalty programs will get its own article in the future. For now, here’s an overview.
Hotel rewards programs tend to be more generous than their airline brethren, mostly because they have to be. In any given city, you may only have a few choices on how to get there. Remember, four airlines control more than 80% of the seats in the US. But once you get to your destination, you have dozens of hotels to choose from. Thus, they need to do a little more to tempt you.
Hilton Honors
Hilton Honors is the hotel loyalty program for Hilton Worldwide, the holding company for 14 Hilton brands and over 5,000 hotels in more than 100 countries.
Given the number of brands that it manages, Hilton has a property from everyone, ranging from the more basic Tru to the high-end Waldorf hotels. There are 570 of the namesake Hilton brand hotels.
With a few exceptions (Home2Suites and Tru), Hilton Honors rewards you with 10 points per dollar that you spend at a hotel. Members with elite status can earn an additional 20-100 percent, based on their status level. One Hilton Honors point is worth approximately 0.4 cents.
Hotel loyalty program redemptions work on a variable model, with no fixed award chart. Over time, this system should lead to higher than average reward price inflation, since there is no way track price changes easily.
World of Hyatt – Hyatt Hotels
World of Hyatt is the hotel loyalty program for the Hyatt Hotels Corporation. Although the chain offers 13 different brands, as well as a partnership with MGM in Las Vegas, it offers just over 1,000 properties, putting it at a significant disadvantage to its peers in terms of availability.
The company is well-covered in major cities, but runs into issues in secondary and tertiary markets. For instance, Silver Spring, Maryland offers four different Hilton brands, but none from Hyatt.
Hyatt makes up for it with an above-average hotel rewards program. You earn five points per dollar spent at its properties, but those points are worth approximately 1.8 cents each when you redeem them. Hyatt’s elite program is also strong, particularly at the top tier, called Globalist.
Redemptions range from 5,000 points for a standard room at a low-end hotel to 60,000 for a premium suite at a luxury property. The award chart is fixed. Hyatt also has a number of partnerships that allow you to stay at other properties, including those of Small Luxury Hotels of the World.
IHG Rewards
IHG Rewards Club is the loyalty program for the InterContinental Hotel Group. You may not be familiar with the parent company, but it encompasses brands like InterContinental, Holiday Inn and Kimpton Hotels. There are 14 IHG brands and over 5,000 hotels, with a heavy international presence.
With a few exceptions, IHG offers 10 points per dollar spent at their properties. The company’s properties are the least integrated of the big four, and it shows in their elite programs, which offers highly variable benefits, none of which is particularly good. The elite bonus is 10-100 percent, based on your status.
Redemptions generally start at 10,000 points per night and run as high as 70,000. Points are worth about 0.6 cents each.
Bonvoy – Marriott International
Bonvoy is the name for Marriott’s new hotel rewards program and, before you ask, no, we have no idea who came up with that ridiculous name, although we have no doubt that the company paid a consultant millions of dollars to do so.
This program resulted from Marriott’s acquisition of Starwood Hotels and combines the former Marriott Rewards with what was, at the time, the best loyalty plan in the industry, Starwood Preferred Guest. Considering the damage that they could have done to the integrated program, they were relatively benevolent, at least for now.
Bonvoy now offers a whopping 29 Bonvoy brands and 7,000 hotels for you to choose from. Obviously, you can get pretty much anything you want, ranging from budget properties to top-of-the-line brands such as Ritz Carlton and Starwood’s Luxury Collection.
The earning rate for the new program is the same as the previous Marriott Rewards. With only a few exceptions, you’ll earn 10 points per dollar spent, with elite members eligible for a bonus ranging from 10 percent to 75 percent, based on your status.
When it comes to redeeming, however, Marriott devalued the points slightly, by rearranging how many points a room costs on its fixed award chart. Thus, points that had been worth approximately 0.8 cents each are now worth closer to 0.7 cents each. That doesn’t sound like a lot, but it represents a devaluation of approximately 10-12 percent.
