Help! My Airline Status Is Falling and I Need a Boost Up

Travel is the quickest way to earn elite status, loads of miles and points, and upgrades for flights and hotels.

I was called up to the United First Class cabin, minutes before takeoff, on a crowded flight home from Denver last week. I had been sitting for 10 minutes in an economy class exit row seat. The bulkhead panel offered no visual distractions and I had some wine and cheese. There wasn't a movie. I was fairly productive in working through the flight.

I realized that next week I will not have a sufficient level of elite status in any frequent flyer program to earn an elite bonus of 100% miles for flights. My low tier status means a significant reduction in "seat scored per upgrade attempts" on United flights. A premier member in Mileage Plus has a difficult time in successfully navigating the upgrade waitlist. This is the first time in 8 years I have dropped below Mileage Plus Premier Executive (50,000 mile) elite status.

I only had about 55,000 butt-in-seat miles for 2007, and like many frequent fliers basing decisions to a large degree on fare price (meaning a fair price), my miles were divided between two different airline alliances – Star Alliance and Skyteam.

My wife asked me after the Denver flight, "How long will it take to re-earn frequent flier elite status?" For a poverty jet setter, the cost is more of a consideration. Air travel is expensive and I have to make it in economy until I earn elite status and a chance at upgrades.

First, the Loyalty Traveler must see the possibilities, and then seize the possibilities.

AAdvantage Platinum Challenge

I just signed up for the AAdvantage Platinum Challenge this morning. Earning American Airlines AAdvantage Platinum status will not take long, as it turns out. The primary benefit of AAdvantage Platinum elite status is earning a 100% miles bonus on flights. And the cost is highly affordable.

Sample Airfares:
Economy class airfare is relatively low to many international destinations at the moment with Tokyo at a reasonable under $800 fare, and Frankfurt, Munich the recipient of fare wars and near the historically low fares in low season at just over $450 to $550, even over Easter break.

Airfare to Europe for between $400 and $500, with all taxes, is generally the low fares to Europe which surface periodically throughout the year. $400 to $500 all-in fares have generally been available from the major California airports for brief purchase periods each year over the past decade. The travel economy has some good value for consumers.

This past weekend, the last weekend of February, airfare searches revealed interesting features for March 2008 spring break travel. The holiday season timing of low international airfares are available from many regional airports like Monterey. Generally holiday season fares have 14-day or longer advance purchase requirements. Many of the March 2008 international fares only require a 7-day advance purchase. The easing of advance purchase ticketing is alluring to the spur of the moment vacation getaway.

Low airfares, a low American Airlines airfare tied in with a London overnight, and drastic rate cuts in Hilton Hotels in London indicate a travel slowdown on the European front. The travel battles are escalating and all-out travel discount war may be around for the 2008 seasons.

This past week Asiana had a $500 all-in fare between Los Angeles and Hong Kong via Korea. The ticket was available Saturday and gone on Sunday.

Tokyo is available from several locations for $600 to $700 on American Airlines. Hong Kong available now for March travel for under $700 from California. These are low fares compared to the average lows of the last two years for Asia flights.

An interesting feature of the American Airlines tickets was Monterey to Tokyo for $750 was in "W" booking class. Monterey-Frankfurt, with a night in London, for $550was in "L" booking class. These discount economy class tickets can be used to qualify for the AAdvantage Platinum elite status challenge. A single airline ticket will qualify and meet the Platinum elite qualifying points 90-day challenge.
http://www.aa.com/aa/i18nForward.do?p=/AAdvantage/programDetails/eliteStatus/qualificationRequirements.jsp

A distance of 5,124 miles between San Francisco and Tokyo means AAdvantage Gold elite status is earned through the AAdvantage Challenge on the flight to Tokyo. The return flight confers Platinum 50,000 mile status. All remaining flights taken with American Airlines in 2008 will earn a 100% frequent flier elite status miles bonus. The goal is to requalify for 50,000 mile Platinum status with additional international flights in 2008.

There is a thread on FlyerTalk about the Platinum challenge.
http://www.flyertalk.com/forum/showthread.php?t=702660

The number given in FlyerTalk redirected me to 800-882-8880. I tried the AAdvantage Services option unsuccessfully. I ended up going to a reservations agent and asked to be transferred since I could not find a non-automated phone message through Customer Services.

American Airlines AAdvantage Platinum Challenge:

10,000 Elite Qualifying Points must be earned in 3 months to receive AAdvantage Platinum membership.

An elite qualifying point is a factor of the flight miles.

For some discount economy class tickets the booking code earns 1.0 elite qualifying points per flight mile.

Assume San Francisco to Denver is 988 miles. The airline ticket booking codes of H, K, M, L, W, or V will earn 988 elite points.

If the booking code is deep discount economy designated by letters G, Q, O, N, S, then only 0.5 elite points are earned per mile and an SFO-DEN one-way flight would earn 494 elite points.

A paid First Class fare of A, F, P or even a full economy fare of B or Y will earn 1.5 elite points or 1,482 elite points for the one-way SFO-DEN flight.

Discount economy booking codes earn 1.0 elite point credit: H, K, M, L, W, V
Deep Discount booking codes earning 0.5 point credit: G, Q, O, N, S .
Full Fare economy/Business/First earn 1.5 point credit: A, F, P, D, I, J, B, Y


Coming This Week:

The Loyalty Traveler is going to journey the world this week as an armchair travel planner seeing the possibilities for earning and burning in a March Madness Triple Pointer travel extravaganza:

• AA Platinum
• Hyatt Gold Passport Platinum
• Free Nights with Starwood Hotels Le Meridien brand.

Better Late Than Never -- SPG 50% Off Redemption

This SPG platinum-lite member (I requalified for platinum status through "Stays Count Double" promotion) returned home from a Colorado trip to find an invitation in my mailbox. "Sample the world. For half the Starpoints."

The 50% off a Category 1-5 hotel stay is appreciated, but the timing is rather late.

I have to make a confirmed reservation within the next 10 days by March 3, 2008 for a hotel stay to be completed by May 31, 2008. Fortunately, this frequent guest is fairly flexible and efficient at vacation planning. There is a 6-night award stay limitation (last year I was able to book a 9-night award with the half Starpoints offer).

St. Regis Singapore, Sheraton Noosa Australia, or Luxury Collection Arabella Western Cape and Spa, Hermanus, South Africa...so many choices.

200,000 Mexicana airmiles and a 50% Starpoints award provides numerous combinations for a Loyalty Traveler vacation extravaganza on the cheap.

Rocky Mountain Wired Less in Colorado

Hyatt Regency, Denver - lobby









“Now his life is full of wonder
but his heart still knows some fear
Of a simple thing he cannot comprehend
Why they try to tear the mountains down
to bring in a couple more
More people,
more scars upon the land”

-John Denver


Pim and Colorado aligned for a wired less eclipse this past week. Pim is my 10-month old kitten. Colorado is the state. My computer died and the timing was Thursday evening 48 hours before a trip out of state.

An alignment of place and time left me in a brief internet blackout coincidental to this week's lunar eclipse. The place was Colorado for a 5-day trip. Amazing growth has occurred throughout Denver in the past ten years. The housing tracts are approaching the airport periphery, although the nearest hotels are still miles away from the terminals.

The AC cord had been faulty on my computer for a month and I delayed purchasing a new one since I wasn’t sure if the cord was faulty or something else internal. I now have a new AC cord and a working computer.

Pim is the prime suspect for my computer eclipse. Pim is our adopted kitten, found lost in the street at about 3 weeks old last May. Pim initially fit in the palm of my hand. I typed for a month with the fingers of my right hand while cradling Pim in my left hand for much of the day. When restless and wandering off my lap, Pim frequently came to rest behind the computer where he slept, warmed by the computer fan. And when Pim was falling asleep he tended to play with the computer AC cord.



The computer went dead Thursday afternoon, 48 hours before heading to Colorado. I spent hours transferring files to a backup computer. I forgot the wireless card software.

A piece will appear this weekend on Hilton Pointstretcher awards and their airline miles-to-HHonors points opportunity. For the most part, I remained relatively unconnected to the internet and physically connected to family. Although, there were some business activities.

Don’t Shoot Me, I’m Only a Frequent Guest Blogger

Tuesday, I checked out several hotels in the Denver Central Business District. I looked around the Hyatt Regency, Grand Hyatt, Marriott, Ritz-Carlton, and Hotel Monaco (Kimpton Hotels).

The Hyatt Regency has rooms with gorgeous views of the Rockies and the LODO district of Denver. Lounge on 35th floor provides a great western view of city. A visitor can have a 27th floor dining experience. The restaurant is primarily evening hours service. The Hyatt Regency is the closest hotel to the Denver Convention Center.

I was approached by Marriott Denver hotel security after spending time wandering around the lobby and cafes. My suspicious activity was taking pictures of hotel signs, menus, the lobbies, and hotel maps. The photos are for my websites and memory joggers for my hotel research.

The security officer accepted my business card. I’m a legitimate small business entrepreneur creating public consumer information. Hotel visits are part of my sightseeing plan wherever I go. Real travel is part of my knowledge base to add contextual details to my writing on hotel loyalty programs and how to get good hotel rates through careful navigation of hotel web sites.

I congratulated the Marriott security team on being observant.

Hotel security is certainly a consideration when I travel internationally. One of the primary reasons I like upscale hotels in the major hotel corporate chains is the presence of security in the form of employees, lighting, locks, and video surveillance. I was serious in thanking the Marriott security personnel for questioning me.

I feel more secure sleeping in a Sheraton in Bangkok, a Hilton in Belfast, or a Best Western in Guayaquil, Ecuador with an armed escort to the taxi on the street.


Denver Boutique Luxury

The Hotel Monaco, a Kimpton Hotel, is on the block between the Marriott and the Ritz-Carlton. Boutique luxury is an apt descriptor. TripAdvisor ranks Hotel Monaco #1 in Denver. The lobby is charming and cozy, while the hotel is located in the heart of downtown. The location and ambience had a welcoming feeling. There is an Aveda shop at the entrance of the hotel.


Hotel Monaco, Denver - lobby

"Added Value" Frequent Guest Loyalty Programs

Kimpton Hotels are some of the most popular hotels in San Francisco. Many of the boutique and independent hotel associations such as Fairmont, Mandarin Oriental, or Leading Hotels of the World operate loyalty programs offering frequent guests added amenities and room upgrades with paid stays. These are what I call "Added Value" frequent guest programs.

The primary feature of Added Value programs is recognition of elite status and associated privileges by the frequency of paid stays. There are no points involved. Basically, the going rate at a luxury boutique hotel may be $300/night and you may get a $150 added value in room upgrades and/or amenities like complimentary breakfast, wine, spa packages, dining packages, and more as a frequent guest perk.

Hyatt, Hilton, Marriott, Priority Club, and Starwood operate hotel points loyalty programs which allow any member to accumulate points redeemable for free hotel nights, upgrades, and additional items and services. Hotel points may be earned without ever actually staying at a hotel.

Hilton HHonors provides members multiple avenues for earning hotel points:

• purchases made with a Hilton HHonors co-branded credit card earning HHonors points,
• the transfer of loyalty points from a variety of programs into HHonors points,
• the ability to purchase HHonors points
• the option to exchange airline miles into HHonors points
• Hotel stay activity
• Business Partner activities earning HHonors points

The exchangeability of hotel points to hotel nights, amenities, services, airline miles, and additional items makes Hotel Points frequent guest programs more versatile than Added Value frequent guest programs.

In addition to hotel points, elite status frequent guest members generally earn regular room upgrades and additional amenities in the major hotel points frequent guest programs.

The Super-Affluent Don’t Do Super-WalMart

Laurence Geller listed some interesting data points in a blog from Jan 18, 2008. His piece discusses the widening divide between Generations X and Y mass consumers and the truly “super-affluent”. In 2006, the affluent spent on average $2,400 on hotels and resorts, while the super-affluent spent $61,200. He argues new brands will proliferate as today’s luxury brands become commonplace.
http://www.hotelsmag.com/blogs/insider/20080117.asp?nid=3457&nid=3457

Friday morning on CNBC, a news crew reported from the St. Regis Fort Lauderdale, Florida from a CEO conference. The studio reporters were asking about the age of the hotel and the reporter stated it had been open 9 months. I haven’t looked into those facts.

The report got me to thinking about the super-affluent and the merely affluent. For the Loyalty Traveler the travel is reduced to the numbers. I wondered what the rates are at the Fort Lauderdale St. Regis.

Here are the search results for St. Regis, FLL room rates for Monday, 2-18-08

OceanView
$476.10 (AAA rate)
$479 (Best Available on StarwoodHotels.com)
$509 Special Offer Page “SRSPG”
$529 (Best Available on SPG.com)
$549 Special Offer AAA rate “XRF”


Ocean Front
$566.10 (AAA)
$579 (Best Available on StarwoodHotels.com and SPG.com)
$609 Special Offer “SRSPG”
$649 Special Offer AAA rate “XRF”

Pool Terrace
$607 Florida Resident rate
$669 Best Benefits Package special offer “SRSPG”
$689 (Best Available on StarwoodHotels.com and SPG.com)
$709 Pool Terrace Special Offer AAA rate

[special offers accessed from St. Regis Fort Lauderdale hotel web site homepage]

XRF rate includes complimentary valet parking, two Bloody Mary’s, and complimentary room upgrade to next available room type. In this case, contact hotel and find out a good night for booking with a good upgrade potential.

SRSPG rate includes two Bloody Mary’s, triple Starpoints and complimentary internet access.

The super-affluent spender could be looking at about 2 to 3 months of Pool Terrace living over the course of a year at this hotel and comparable properties. The affluent spender on $2,400 is looking at a long President’s weekend holiday and sitting home the rest of the year.


Starwood Cash & Points Award Savings

While checking St. Regis Fort Lauderdale, I came across an example of where loyalty program membership leads you to a much better booking option than a regular search on the hotel chain primary web site.

Westin Colonnade, Coral Gables, FL
Saturday, Feb 16, 2007
Rate = $429/night

www.starwoodhotels.com web site found through a regular search engine search as a hotel guest not participating in Starwood Preferred Guest and not looking for the loyalty program site. Checking

www.SPG.com - I have the option of getting a Cash & Points award at this Category 4 Hotel for $60 and 4,000 Starpoints.

The ability to buy up to 20,000 Starpoints online from SPG at the rate of $35/1,000 points is a strategy to keep in mind if you do not have 4,000 Starpoints. Adding the cost to buy 4,000 Starpoints for $140 and the $60 Cash portion of a Cash & Points award makes a $200 room rate booking possible. The website states purchased Starpoints will be posted to your account within 24 hours.

The corporate-branded hotel websites generally have the lowest rates for their own hotel rooms compared to third-party online travel agencies like Expedia and Travelocity.

The difficulty for the DIY online hotel reservationist, is the time needed to sift through thousands of pages on the corporate-branded websites to find the lowest rate page. Finding the lowest rate is a matter of knowledge and luck at the time you search.

$485 through Starwood Hotels corporate web site compared to $200 for the SPG member using Cash & Points booking option for a one-night rate at the Westin Colonnade is the differential cost for the guest with a lack of knowledge and time. The Starwood Preferred Guest loyalty program gives the member a hotel rate option that is nearly $300 less.

An additional benefit of a Cash & Points stay is the award stay usually does not incur tax. The minor detraction of a Cash & Points award is the hotel stay does not count for elite qualification or promotional offer credit. A Cash & Points award stay also does not earn points for the Cash portion of the award.

Priceline Hotel Bookings

CNBC reported Friday morning Priceline has experienced a surge in bookings. The TV commentator asked, "Does the growth in Priceline indicate a weak economy?"

Priceline is a great resource when hotel room rates are threatening to make your credit card bleed. Last June, I booked the Marriott Key Bridge in Arlington, Virginia for a Sunday night before a Monday afternoon flight to Buenos Aires. I wanted to be in DC, but the major loyalty program hotel rates ranged from $250 to $350/night. I considered renting a car and driving to the Virginia outer suburbs for a $100/night Sheraton rate. Instead I paid $115 total for the Marriott and I was a ten minute walk across the bridge into Georgetown. I had an interior pool view room on the third floor while the preferred rooms look out over DC from 6 to 10 stories up.

Nickel and Dimed! US Airways Ch-ch-changes!

Ch-ch-ch-ch-Changes
(Turn and face the strain)
Ch-ch-Changes
Oh, look out you rock 'n rollers

-david bowie

My post on Monday, Feb 11 with advice to a friend on getting an award ticket with US Airways is already outdated.

US Airways has announced a couple of changes to the Dividend Miles program.
1. Flight Segments will no longer earn 500 miles minimum, but actual miles.
2. Award travel booked online within 14 days of flight departure will have a $50 expedite fee. (The no fee for an award ticket booked online up to 6 hours before flight departure was a major competitive benefit for the Dividend Miles program that is now being eliminated.)

http://www.flyertalk.com/forum/showthread.php?t=790437

The flight segment change may not seem like a big deal, however, the 500-mile minimum for miles earned per flight segment has been standard across the major US airline frequent flier programs. Now we wait and see if other airline loyalty programs follow suit.

Let me explain why this is a big impact.

I live in Monterey, California and flights originating at our local Monterey regional airport are predominantly feeder flights to the major hubs of San Francisco and Los Angeles airports.

In practice this is how the change affects a regional flyer like me. Let's assume I take 10 trips a year to international locations and cross country domestic. Assume all my flights go from Monterey through San Francisco. (In reality, I try and fly through Los Angeles because the flight out of Monterey to LAX is much more reliable. MRY-LAX=266 actual flight miles. I use Great Circle Mapper for quick mileage checks that are usually within 1 or 2 miles of frequent flier program distance calculations in my experience.)

MRY-SFO is 92 flight miles. Under the old US Airways rules, my United flight segment for MRY-SFO would earn 500 minimum base miles. The new rules for tickets purchased on or after March 1, 2008 for flights on or after May 1, 2008 will earn only 92 miles for this flight.

Upper tier elite status earns a 100% flight miles bonus.

Current miles earned for a flight including MRY-SFO segments on outbound and inbound:
MRY-SFO 500 miles x 100% elite bonus = 1,000 miles
SFO-MRY 500 miles x 100% elite bonus = 1,000 miles
______
2,000 miles earned for these two flight segments of a ticket.

As of May 1, 2008
MRY-SFO 92 miles x 100% elite bonus = 184 miles
SFO-MRY 92 miles x 100% elite bonus = 184 miles
______
368 miles earned for these two flight segments of a ticket.

The frequent flier miles earned has been reduced by over 80% on these flight segments.

A frequent flier, with 10 international and domestic tickets that have these Monterey to San Francisco flight segments, will see miles earned over the course of a year reduced from
20,000 miles down to 3,680 miles with the rule change to actual flight miles per segment.

Even if considering miles have a simple value as low as 1 penny each, this means a loss of about $175 in earned mileage per year.

20,000 miles is a good portion of the way to a free ticket.
3,680 miles is a free magazine subscription.

This is a big frequent flier program change.

Major hotel loyalty program brands on Conde Nast Traveler 2008 Hotel Gold List

The Conde Nast Traveler Gold List describes itself as the "Best Places to Stay in the World, selected by readers of Conde Nast Traveler."

Loyalty Traveler has examined a subgroup from this list to determine the hotels which also are part of major hotel loyalty programs. These hotels have the attribute of being available using hotel points.

Europe

Hilton Gold List Hotels with links to CN Traveler ratings and description.
Reserve Hotels listed in the print magazine do not appear to be online.

Mount Juliet Conrad, County Kilkenny, Ireland
HHonors Category 6
Free night = 40,000 points/night or 175,000 points/6-nights

Rome Cavalieri Hilton, Rome, ItalyHHonors Category 6
Free night = 40,000 points/night or 175,000 points/6-nights

Conrad Brussels, Belgium (Reserve List)
HHonors Category 5
Free night = 35,000 points/night or 150,000 points/6-nights

Conrad Istanbul, Turkey (Reserve List)
HHonors Category 4
Free night = 30,000 points/night or 150,000 points/6-nights
PointStretcher Awards for 18,000 points/night may be available
PointStretcher Dates Jan 1-12; Feb 10-17; Mar 9-16

Hilton Budapest, Hungary (Reserve List)
HHonors Category 5
Free night = 35,000 points/night or 150,000 points/6-nights
My wife commented recently that our stay at the Budapest Hilton was the best hotel room we ever had. That is a big claim. We stayed in the King Duna Suite on a PointStretcher award.

Hyatt Hotels available with Gold Passport Points

Park Hyatt, Milan, Italy
Gold Passport Category 5
Free night =18,000 points

Park Hyatt, Zurich, Switzerland
Gold Passport Category 5
Free night =18,000 points

Park Hyatt Paris-Vendome, Paris, France (Reserve List)
Gold Passport Category 5
Free night =18,000 points

InterContinental Hotels Group

InterContinental Carlton, Cannes, France
Priority Club Rewards Free Night = 40,000 points

Ceylan InterContinental, Istanbul, Turkey
Priority Club Rewards Free Night = 40,000 points

InterContinental Amstel, Amsterdam, Netherlands (Reserve List)
Priority Club Rewards Free Night = 40,000 points

Marriott Corporation Brands

JW Marriott Bucharest Grand Hotel, Bucharest, Romania
Marriott Rewards Category 4
Free night = 20,000 points/night to 105,000 points/7-night stay

JW Marriott Tiberio Palace, Capri, Italy
Marriott Rewards Category 7
Free night = 35,000 points/night to 150,000 points/7-night stay

Marriott Berlin, Germany
Marriott Rewards Category 5
Free night = 25,000 points/night to 115,000 points/7-night stay

Renaissance Chancery Court, London, UK
Marriott Rewards Category 7
Free night = 35,000 points/night to 150,000 points/7-night stay

Ritz-Carlton Berlin, Germany
Marriott Rewards Tier 1 Partner Hotel Award
Free Nights = 45,000 points/night to 175,000 points/7-night stay (25,000 points/night)

Ritz-Carlton Hotel Arts, Barcelona, Spain
Marriott Rewards Tier 2 Partner Hotel Award
Free Nights = 70,000 points/night to 250,000 points/7-night stay (35,714 points/night)

Starwood Hotels Brands

Le Meridien Beach Plaza, Monte Carlo, Monaco
SPG Category 5
Free Nights = 12,000-16,000 points/night or 48,000 - 64,000/ 5-night stay
Cash & Points Night = $90 + 4,800 points/night

Le Meridien, Vienna, Austria
SPG Category 4
Free Nights = 10,000 points/night or 40,000 points/5-night stay
Cash & Points Night = $60 + 4,000 points

Le Royal Meridien Bristol, Warsaw, Poland
SPG Category 3
Free Nights = 7,000 points/night or 28,000 points/5-night stay
Cash & Points Night = $45 + 2,800 points

Hotel Imperial, The Luxury Collection, Vienna, Austria
SPG Category 6
Free Nights = 20,000-25,000 points/night or 80,000 - 100,000/ 5-night stay
Cash & Points Night = $150 + 8,000 points/night

Hotel Kamp, The Luxury Collection, Helsinki, Finland
SPG Category 5
Free Nights = 12,000-16,000 points/night or 48,000 - 64,000/ 5-night stay
Cash & Points Night = $90 + 4,800 points/night

Hotel Villa Cipriana, The Luxury Collection, Asolo, Italy
SPG Category 4
Free Nights = 10,000 points/night or 40,000 points/5-night stay
Cash & Points Night = $60 + 4,000 points

Hotel Bristol, The Luxury Collection, Vienna, Austria
SPG Category 5
Free Nights = 12,000-16,000 points/night or 48,000 - 64,000/ 5-night stay
Cash & Points Night = $90 + 4,800 points/night

Hotel Alfonso XIII, The Luxury Collection, Seville, Spain
SPG Category 6
Free Nights = 20,000-25,000 points/night or 80,000 - 100,000/ 5-night stay
Cash & Points Night = $150 + 8,000 points/night

Hotel Maria Cristina, The Luxury Collection, San Sebastian, Spain
SPG Category 5
Free Nights = 12,000-16,000 points/night or 48,000 - 64,000/ 5-night stay
Cash & Points Night = $90 + 4,800 points/night

Hotel Grande Bretagne, The Luxury Collection, Athens, Greece
SPG Category 5
Free Nights = 12,000-16,000 points/night or 48,000 - 64,000/ 5-night stay
Cash & Points Night = $90 + 4,800 points/night

Hotel Gritti Palace, The Luxury Collection, Venice, Italy
SPG Category 7
Free Nights = 30,000-35,000 points/night or 120,000 - 140,000/ 5-night stay
Cash & Points Night = Not Available

Hotel Goldener Hirsch, Salzburg, Austria
SPG Category 5
Free Nights = 12,000-16,000 points/night or 48,000 - 64,000/ 5-night stay
Cash & Points Night = $90 + 4,800 points/night

Westin Palace, Madrid, Spain
SPG Category 5
Free Nights = 12,000-16,000 points/night or 48,000 - 64,000/ 5-night stay Cash & Points Night = $90 + 4,800 points/night

Westin Excelsior, Florence, Italy
SPG Category 6
Free Nights = 20,000-25,000 points/night or 80,000 - 100,000/ 5-night stay
Cash & Points Night = $150 + 8,000 points/night

Westin Europe & Regina, Venice, Italy
SPG Category 5
Free Nights = 12,000-16,000 points/night or 48,000 - 64,000/ 5-night stay
Cash & Points Night = $90 + 4,800 points/night

Westin Turnberry Resort, Ayrshire, Scotland, UK
SPG Category 5
Free Nights = 12,000-16,000 points/night or 48,000 - 64,000/ 5-night stay
Cash & Points Night = $90 + 4,800 points/night

The Lanesborough, St. Regis Hotel, London, England, UK
(This Starwood Hotel does not participate in SPG loyalty program).

Blue Palace Resort & Spa, The Luxury Collection, Crete, Greece (Reserve List)
SPG Category 6
Free Nights = 20,000-25,000 points/night or 80,000 - 100,000/ 5-night stay
Cash & Points Night = $150 + 8,000 points/night

Hotel Cala di Volpe, The Luxury Collection, Porto Cervo, Sardinia, Italy (Reserve List)
SPG Category 7
Free Nights = 30,000-35,000 points/night or 120,000 - 140,000/ 5-night stay
Cash & Points Night = Not Available

St. Regis Grand, Rome, Italy (Reserve List)
SPG Category 6
Free Nights = 20,000-25,000 points/night or 80,000 - 100,000/ 5-night stay Cash & Points Night = $150 + 8,000 points/night

Westin Excelsior, Rome, Italy (Reserve List)
SPG Category 6
Free Nights = 20,000-25,000 points/night or 80,000 - 100,000/ 5-night stay
Cash & Points Night = $150 + 8,000 points/night

Hotel Points Exchange Rate Theory

Hotel Points Exchange Rate Theory

A common question is "How much are hotel points worth?"

A frequent guest wants a variety of strategies for reducing the cost of a hotel stay. Your choices are dictated primarily by the investment of time you are willing to make to find the best deal. Traveling with a big picture view of your frequent hotel stay plan allows you to consider a variety of strategies to find lower hotel rates. A knowledge base of the different ways to earn hotel points combined with knowing your options for hotel points redemption is the basis for understanding and applying Hotel Points Exchange Rate Theory.

Hotel Points Exchange Rate Theory
Principle #1
Hotel Points have real value only when redeemed, or exchanged for an item in lieu of cash.
Principle # 2
Hotel points sitting in an account only have potential value.
Principle #3
The potential value of your hotel points is not a constant value.

[Note: The Hotel Points Exchange Rate Theory is my own Loyalty Traveler construct so you won't find it in Wikipedia]

Hotel loyalty program changes throughout the membership year due to factors such as hotel category classification changes, hotel redemption changes or promotions, and special offers using hotel points creates a dynamic potential value for hotel points that rises and falls as redemption exchange rates and conditions change.

Applying the Theory in Consumer Hotel Travel

What is the value of 25,000 Priority Club points?

The cost to buy 20,000 Priority Club points is $200. There is a 20,000 point purchase limit per calendar year. If extrapolated, 25,000 points has $250 value based on simple purchase price of points through Priority Club. This is the elementary answer to value of points.

What is the potential value of 25,000 Priority Club points?

The potential value of hotel points is a range depending on money saved at time of redemption. 25,000 hotel points will have no value if they are never redeemed and expire from member’s account. 25,000 hotel points may have a value of $500 or more if redeemed for an award with that purchase price using cash.

Principle # 3 is the focus of my hotel loyalty program work.

The potential value of hotel points is dependent on the exchange rate when you decide to use them. My work involves keeping track of current exchange rates and sharing my analysis of the more favorable exchanges for your hotel points.

Enough with the theory.

Here is how Exchange Rate applies to real world hotel travel:

The simple value of 30,000 hotel points is $300. The potential value depends on timing and location.

Two examples of timing and location:

Example 1: Priority Club advertises the program feature allowing a member to use Priority Club hotel points for any hotel anywhere. The fact is true, but the details show the real value of hotel points. 29,000 hotel points can be exchanged for a $100 American Express gift card.
http://www.ichotelsgroup.com/h/d/pc/1/en/c/2/content/dec/pc/0/en/points/us/anyhotel.html
This is a poor hotel points exchange rate. The potential value of 30,000 Priority Club hotel points is much higher than $100 if used differently.


Example 2 Scenario:

Michael Palin's Eastern Europe travelogue made Romania look like an interesting destination. 30,000 Priority Club points have been sitting in a traveler’s account.

Will 30,000 points get a free night in Bucharest, Romania?

There happen to be two IHG hotels in Bucharest, the Crowne Plaza and the InterContinental. The security of a major hotel in a large foreign city is comforting. The hotel points exchange rate needs to be compared for different options at these hotels to determine which hotel offers the best value for 30,000 points.

First, look at the redemption levels for the two hotels.

Marriott, Hilton, Hyatt, and Starwood all categorize hotels by a number system to determine the amount of points for a free hotel night.

Priority Club structures hotel redemption by hotel brand and there is only variation in the redemption point level for InterContinental, Holiday Inn, and Holiday Inn Express hotels. Some InterContinental Hotels require 40,000 points, while others are only 30,000 points. All Crowne Plaza hotels are 25,000 points for a free night standard redemption.

InterContinental Bucharest takes 30,000 points for a free night. My simple value calculation tells me that my points are worth $250 to use 25,000 points for the Crowne Plaza or $300 to use 30,000 points for a night at the InterContinental.

Second, check the hotel room rates for anticipated date of arrival to see if they are above or below the simple value of $250 per night for Crowne Plaza or $300 per night for InterContinental.

Hotel rates for April 15, 2008
Crowne Plaza, Bucharest is 743 RON/night (Romanian New Lei) = $299 USD/night +12% tax
InterContinental Bucharest is 300€/night = $437/night + 12% tax

The InterContinental Bucharest appears to be a better value with a hotel points exchange rate value of close to $500 for the 30,000 points. (Award nights generally include the hotel tax in the award redemption.)

Depending on my time I may have stopped my analysis here, checked some hotel reviews, and booked the InterContinental. (TripAdvisor shows Crowne Plaza ranks #8, however only 4 hotel reviews which is too low for statistical validity in my opinion, and the InterContinental ranks #10).

When you check hotel points redemption for Bucharest you should find that the Crowne Plaza has a PointBreaks special redemption offer available for April 15, 2008 for only 5,000 points.

Priority Club PointBreaks Hotel Award- 5,000 hotel points for a free night. http://www.ichotelsgroup.com/h/d/pc/1/en/c/2/content/dec/pc/0/en/points/us/hre/pointbreaks.html?rateCode=IVANI

The potential value of Priority Club hotel points redeemed for the Crowne Plaza has increased to about $335 for 5,000 points compared to the potential value of $500 for 30,000 points used for a free night at the InterContinental. The real value of the hotel points exchange is $67/1,000 points if redeemed at the Crowne Plaza, Bucharest using a PointBreaks award compared to the real value of $17/1,000 points if redeemed for a free night at the InterContinental Bucharest.

The value of 30,000 Priority Club hotel points potentially is over $2,000 if used for a 6-night stay at the Crowne Plaza Bucharest.

Hotel Points Exchange Rate Theory shows there is no real value of hotel points until they are redeemed. Points only have potential value when sitting in a member's account. The real value of hotel points when redeemed is all a matter of timing and location.

The Loyalty Traveler seeks out and writes about the higher potential values for hotel points.