Thursday, February 28, 2008

SPG Annual Category Shift: Yearn to Burn



The Laguna Resort and Spa, Nusa Dua, Bali, Indonesia
Dec 2003, SPG Category 2, free weekend night =3,000 Starpoints
March 2008, SPG Category 4, free weekend night =10,000 Starpoints



[Note from Ric Garrido Mar 3, 2008:
I apparently misread the "SPG Hotel Category Changes for 2008" chart at the time I wrote this post. I do not see The Pulitzer, Amsterdam showing a Hotel Category Change in March 2008. The Pulitzer remaining at Category 5 made much of my blog text moot concerning that hotel going from Category 4 to Category 6 in just over a year. I have edited the blog post to delete the portion on The Pulitzer. I also corrected some elementary math errors: Increasing from 100 to 250 is a 150% increase, not 250%.]

Gary Leff's post, February 25, 2008 on View from the Wing about the SPG annual category shift got me to thinking about my reaction to the coming changes. I understand the rationale for SPG increasing the categories for high demand hotels. Yet, I feel the pain of devalued points.

I have decided to look at it initially from my personal travel perspective.

Maybe later, I'll tackle a real analysis of the shifts if I can locate charts showing the SPG categories from 2004 and 2006 to help me track the changes. Blondebomber of FlyerTalk has active links to his SPG Hotel Category spreadsheet on the internet. The spreadsheet tracks the SPG hotel category changes from 2005 to the current March 4, 2008 changes.


Hotel Shifts I notice from past stay award rates for a single free night:

Sheraton Noosa, Noosa Heads, Queensland, Australia,
July 2003
Category 3
7,000 points

March 2008
Category 5
12,000-16,000 points

Four Points Darling Harbour, Sydney, Australia
July 2003
Category 2
3,000 points weekend; 4,000 points weekday

March 2008
Category 4
10,000 points

Westin Nusa Dua, Bali, Indonesia
December 2003
Category 1
2,000 points weekend; 3,000 points weekday

March 2008
Category 3
7,000 points
December 2003
Category 2
3,000 points weekend; 4,000 points weekday
March 2008
Category 4
10,000 points

Royal Orchid Sheraton, Bangkok, Thailand
March 2004
Category 1
2,000 points weekend; 3,000 points weekday

March 2008
Category 3
7,000 points

Westin Atlanta Airport
June 2007
Category 2
3,000 points weekend; 4,000 points weekday

March 2008
Category 3
7,000 points

Sheraton Newark Airport
June 2007
Category 2
3,000 points weekend; 4,000 points weekday

March 2008
Category 3
7,000 points


I have made a very rough estimate of the category changes at hotels I've visited.
I've probably redeemed 150,000 to 200,000 Starpoints for free nights at some of the hotels listed here and other places and locations I've stayed over the past five years.
I estimate it would now take about 260,000 points for the same number of nights at hotels where I redeemed points for stays for about 100,000 points.
Next month, 100,000 Starpoints might buy 10 nights at a selection of hotels where I redeemed 100,000 points for 25+ nights.

Hotel room rates in most places have not risen anywhere near 150% in the past five years. Starwood point inflation has been devastatingly high on the free night redemption side for many travelers.

In Starwood's favor, the widespread expansion of available Cash & Points rates in 2007 for hotels in all SPG categories from 1-6 has proved to be a high value use of Starpoints at many hotel properties.

$60 and 4,000 Starpoints for a Category 4 hotel award night can be a great alternative to 10,000 Starpoints or a $250+/night paid room rate. Paying $60 cash is a much higher value than spending 6,000 Starpoints.

$150 and 8,000 Starpoints for a Category 6 hotel night is often a better choice than 20,000 Starpoints or a paid room rate of $500/night.

I am glad I traveled when I did.

How much has your Starpoints earning power increased over the past five years?
My earning power hasn't increased significantly and nowhere near 150%.

Two options for this traveler: Stay fewer hotel nights or pay more money to increase the ratio of paid/award nights.

My economy will be the decider.

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