About Those Choice Privileges Devaluations….

Choice Privileges Devaluations

You may have heard about a couple recent Choice Privilege devaluations here or there.  Or maybe you haven’t, because like most, you have little to no interest in ever staying at any of the Choice Hotels brands.  (Actually, I guess you have some since you clicked on this article.)  Choice Privileges came in at #3 on my Noncents Ranking of Hotel Points, and they’re still one of my favorite hotel currencies to earn and redeem.  Naturally, I care about any changes to the program – good or bad.  I’ve been chewing on these perceived devaluations a bit, and I’m sharing how I characterize these changes today.

Preferred Hotels & Resorts Partner Award Rates

The first supposed devaluation we were hit with was the increased partner award rates with Preferred Hotels & Resorts.  Choice fans obviously care about this because Preferred offers high-end properties, something substantially lacking within Choice’s own brands.  Previously, I found a variety of desirable Preferred properties bookable with Choice points from 20k to 55k nightly.  We’re now seeing rates as high as 87k nightly for certain properties.

Choice Hotels Award Rates

The next negative change related to Choice’s in-house brands.  Previously, Choice nightly award stays ranged from 6k to 35k points.  Now, Choice award stays start at 8k, without the chain providing any nightly rate cap.  For what it’s worth, some hotels previously offering 35k award nights are now pricing at 45k.

My Take

Preferred Hotels & Resorts Changes

On paper, these developments are concerning.  But assessing these as big devaluations leaves out nuance.  Looking at one Preferred Hotels & Resorts property going from 55k to 87k nightly is, of course, a large negative.  But looking closer, I’m not seeing a devaluation across all properties.  And where there are increases, the difference isn’t necessarily that stark.  Some properties have the same award rates post-devaluation, and others see modest increases within 10k or so points nightly.  Undoubtedly, some will feel the sting from the huge devaluation of 32k points, while others will feel less of it, if at all.

Choice Hotels Changes

Let’s now look more at the devaluations affecting Choice’s in-house brands.  The new award stay floor has moved from 6k to 8k.  One detail:  that’s a 33% increase for these awards.  A more key detail:  I don’t recall ever staying at a 6k Choice Privileges property, and there’s probably no freaking way I ever would even if it was still 6k nightly.  I bet I’m not alone here.  (If you need more clarification, take a look around what’s available at 8k on the Choice site.)  The award stay floor increase is moot for this group.

Those concerned about the top end being uncapped are primarily scared of the boogeyman, in my view.  This change doesn’t necessarily mean a stay at a given property at the top costs more right now; it just means Choice more clearly announced their ability to raise those rates in the future (as they could’ve always done anytime, anyway).  Depending on the property of focus, it either cost the same or has gone up.  The only losers here are the ones who have currently committed to an inflated award rate.  Time will tell how this affects a larger group of Choice Privileges members, depending on the scope, speed, and size of the increases.  Choice has diabolically obfuscated the changes for those not paying the closest of attention.  That’s lame, but also a natural move for a chain and program looking to evolve.  After all, most chains’ award charts disappeared long ago.

Outrunning Award Stay Rate Increases

Another reason I’m largely unconcerned with the two recent devaluations is that savvy points and travel hobbyists can outpace these rate increases via Choice Privileges points earning from credit card spend.

Citi continues to offer what I consider one of the best travel partner transfer ratios, 1 ThankYou point to 2 Choice Privileges points.  That means the Double Cash card is a 4x Choice points everywhere card, and the Premier earns 6x Choice points in generous categories, including grocery stores, dining, gas, hotels, and airfare.  Even better, that same transfer ratio is now available with the Wells Fargo Autograph Journey.  Incorporating this card’s bonus categories, that’s 10x Choice Points on hotels (including those beyond Choice), 8x on airlines, and 6x for dining and other travel.

Plus, Wells Fargo continues to offer two cobranded Choice cards, most notably the Choice Privileges Select Mastercard.  This product earns 10x at Choice, and 5x on gas, grocery, home improvement, and phone plan service spending.

Choice Privileges Devaluations – Conclusion

The changing amounts required for certain award redemptions negatively impacts some.  But many Choice Privileges enthusiasts are minimally affected, and others don’t feel anything at all based on how they currently redeem.  Of course, we must continue to monitor how Choice implements and more widely applies these changes.  Surely, more tweaks will come, some more concerning than others.  But, for right now, my confidence in earning and redeeming Choice points hasn’t really shaken.  Perhaps some of you are in the same boat.

Have you felt either of these Choice Privileges devaluations, or have you been unaffected?

Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.

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