HiltonHonors devalued?

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  • Anonymous
    Guest

    Tom Otley
    Keymaster

    We are researching a piece on the soon-to-be-implemented HiltonHonors changes and would be interested in your opinions and questions for the representative of Hilton we are hoping to speak to this week.

    The changes are detailed on this link here
    http://hhonors1.hilton.com/en_US/hh/rewards/freenight.do?cid=EM,HN,AdHoc,POINTSREFRESHFNCLICKHERE1009&wt.mc_id=EIEMpointsrefreshfnclickhere1009

    But in summary, they involve a devaluation of points redemption.

    The most notable shift is in pushing most if not all hotels into a higher redemption category, so, for instance, a hotel such as the Hilton London Green Park which is category 6 and would be 40,000 points for a one night redemption will, from January 15 2010 when the changes come into effect, become a category 7 hotel, and cost some 50,000, which is a 25 per cent increase in points required.

    The relevant tables and FAQs are here

    http://hhonors1.hilton.com/en_US/hh/landing/2010Reward/index.do

    http://hhonors1.hilton.com/en_US/hh/landing/RewardFAQ/index.do

    I’d be interested in any questions you would like posing.

    There is a perception that as with the airlines, hotel companies are
    selling many more points to credit card companies, and in doing so devaluing the programme for frequent travellers.

    In addition, with more people reaching elite status in a programme, such things as room upgrades become more difficult to secure

    At the same time, the points themselves are worth considerably less (the percentage increase of 25% quoted above is the largest, we think, but even at mid-level grades, it is a double-digit increase in required miles for redemption as a result of the category shift)

    Finally, this has been discussed elsewhere on the forum, for which I would like to thank Senator, SimonRowberry et al….

    http://www.businesstraveller.com/discussion/topic/Changes-to-Hilton-H-rewards


    VintageKrug
    Participant

    I would like to ask them why their UK credit card has such appallingly low earnings rates (£1=1 point), while US customers (with far more opportunity to use Hilton in many more and less expensive properties) get at least $1=1 point on regular spend.

    There are also **significant** differentials between the US and UK sign up bonuses for these credit cards – haven’t time to research, but it would be interesting to understand the logic behind this strategy.


    watersz
    Participant

    I think its 2 points per GBP on thier card

    Do the VIP only (gold silver and diamond) rewards miles needed stay the stay the same ?

    I have taken qutie a few rewards stays form hilton during the years
    and been gratefull for them, but this just makes me think about what the opposition are offering(marriott e.t.c)

    t


    VintageKrug
    Participant

    edited..erroneous, however:

    The same issue with the £/$ disconnect and the sign up bonus differential remains.


    watersz
    Participant

    nope ‘fraid not 3 points for hilton spend


    VintageKrug
    Participant

    Quite right:

    Earn 3 Hilton HHonors bonus points for every eligible £1 you spend at participating Hilton Family hotels worldwide.

    Earn 2 Hilton HHonors bonus points for every eligible £1 spent with your Hilton HHonors Platinum Visa Card.

    I can only see a promo for 7,500 points for signing up; when I did it I received 20,000 points.

    IHG is upping the ante on this subject, by offering Hilton HHonors members up to 2 million Priority Club points to compensate them for “recent increases in Hilton HHonors’ hotel rewards rates”.

    http://www.businesstraveller.com/news/ihg-to-give-hilton-honors-members-400-million-c


    SimonRowberry
    Participant

    Good afternoon, all.

    There is another insidious way in which Hilton HHonors is being devalued for its tier members (I speak as a Diamond Member – once again, having been devalued to a Silver – see my other posts on another thread).

    Hilton have introduced the concept of ‘e-upgrade.’ What this basically means is that everyone, HH Members or not, has the opportunity to elect for a space-available upgrade on check-in. One elects, at the time of booking confirmation or anytime up to the time of check-in, to PAY for an upgrade if available. These are then allocated on a first-come basis.

    HH Gold and Diamond Members can elect for the same range of upgrades, but some are free, reflecting the tier benefit.

    HOWEVER, my experience has been that since the introduction of ‘e-upgrades’, the availability of free upgrades for Diamond and Gold Members has seriously reduced. The cynic in me asks “Why give a free upgrade to a tier Member when you can get a non-tier member, or indeed, a non-HH member to pay?” I should point out that when you select an ‘e-upgrade’ on the website, you commit yourself to paying for that upgrade if it is available at check-in.

    As a Diamond Member, I am entitled to use the Exec Lounge, whether or not I am actually upgraded to a Exec Room itself. However. Gold Members can only use the Exec Lounge if they get an Exec Room (this is a relatively new rule). I am therefore of the view that, whilst Diamond Membership still has some clear Exec Floor benefits, the benefits for Gold Members have been very seriously eroded, as upgrades are now so scarce.

    I am now increasingly using Starwood. Although I am only a Gold SPG Member, I am almost always upgraded at their properties.

    Regards,

    Simon


    SimonRowberry
    Participant

    I don’t know if this is the most appropriate thread, but I have a question which, if someone could answer, will obviate me having to plough through the somewhat non user-friendly SPG site.

    Hilton Honors award nights count towards tier status. Is this also the case with SPG? The reason I ask is that although I’ve accumulated a fair few points over the years, I’ve never actually redeemed a free night, usually deciding that the 15,000 points for a suite upgrade, offered at check-in, sounds a wonderfully good deal (usually after a long flight and several augmented Perrier waters!).

    Advice gratefully received.,

    Regards, Simon


    CharlieBrown
    Participant

    Today I was sent a Hilton Honors Gold VIP card. Having a look at the literature it appears their relationship with BA’s Executive Club was exercised to send me this. I haven’t stayed with Hilton in over a year! Has anyone else randomly received one?


    Senator
    Participant

    Thomas,

    Hilton seem to hand out Gold cards to “random” people 🙂 Sorry, no pun intended. What I wanted to say was that my original HH membership was gold, compliment of UA Premier Executive level which I had about 10 years ago.

    I also know that in some markets, a AMEX Platinum card will include a complementary HH Gold card.

    Back to the topic… Yes, the HH programme is not as good as it was. However, I believe the ability to earn status three ways (points aka spending, nights, and stays) is very good. I have never qualified on nights or stays, always on points. A quick calculation is that you need to spend US$10000 annually for the Diamond card. Since I normally take my parents once a year, and some friends I easily have some multi-room stays with food etc that yield around $3000 each I have little problem to maintain my Diamond level. Good things I have family and friends that like to travel with me, share the cost, but also enjoy the perks of my Diamond card.

    In terms of redemption, I always use this for the most expensive stays. I am currently at the airport in ZAG for a last minute stay in Dubrovnik. The Hilton in DBV would cost €325 per night, and now I have cashed out four nights at a cost of 200.000 points. This is the same as Diamond level (100.000 base points + 50% for not double-dipping + 50% for Diamond level). So for US$10.000 of spend, I get €1300 of “free” nights back which I think is a pretty good deal.


    CharlieBrown
    Participant

    Interesting to know, thank you Senator. I think the “random” (word of the day) nature of my upgrade to “Gold VIP” status from “errr not a Hilton cardholder” status is very relavent to the topic of this thread.


    NTarrant
    Participant

    Thomas – I too was a “random” Gold VIP card person, having been sent it three years ago, again as a result of being a BA Exec card holder. The first year I only stayed in a Hilton twice so assumed that I would not retain it, but I did. The marketing clearly worked as I have to confess to being a Hilton fan, as Senator says there are a number of ways to retain the higher tier.

    Yesterday my wife received a Hilton Silver card, she holds a BA Blue Exec card. I recall back in 2002 when I was Blue receving a silver Hilton card. When I received my Gold card I was BA Silver. So I would assume that those without Hilton cards that are Gold BA card holders would get a Diamond version.

    Perhaps that may put some light on it?


    LuganoPirate
    Participant

    Just a word of warning.

    I always thought Hilton points do not expire. I was wrong, they now expire after 12 months inactivity. With 300,000 points I was keen not to lose them and could keep them alive for another year by buying 1,000 points for $12.50 which I did.

    So if you are not aware of this ruling and have a good number of points, its worth checking your statement.

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