On Loyalty – Thoughts on the Recent Hilton Honors Devaluation

Hilton Honors Devaluation

With last week’s devaluation, Hilton Honors reminded us again that they (and their competitors) can pretty much do anything they want with their rewards program.  While I dabble in the lion’s share of hotel loyalty programs, I lean on Hilton’s more than any other.  So I’m naturally intrigued by developments there, including negative ones like the upward creep of award prices.  I’m not surprised by this Hilton Honors devaluation, and I won’t be by another one or two within the next few months.  These are my initial thoughts based on last week’s news.

Shrewd Timing

Hilton Honors has been on a recent tear improving their program, adding attractive brands such as Auto Camp, SLH, Nomad, and Graduate Hotels.  To many travelers’ delight, they’re focusing on a larger luxury portfolio, while also firming up low-end options with Spark (which I’m still oddly intrigued to try).  The chain’s more ingrained with Amex benefits, with quarterly credits across Business Platinum and Hilton Surpass and Business cards.  I’ve become more invested in the program, and I imagine many others have, too.

So it’s optimal timing for the program to inflate award prices at a selection of their properties.  It’s only natural that they would after a string of positive developments.  It’s a calculated move, a favorable one for the program which won’t send a substantial number to the loyalty exits.

Are Certs Next?

People who do stuff on the internet for money quickly latched onto the fact that award rates have now reached up to 200k points nightly.  That’s an eyepopping number, but we can easily put ’em back in our sockets when we realize that only affects a handful of 8,600 or so Hilton Honors locations.  Still, I feel like our days with what I consider the best hotel free night certificates are numbered – in their current form, at least.

As of this writing, members can redeem Hilton free night certificates, for almost all of those 8,600 properties with a few exceptions.  And we’ve been able to redeem a cert any night of the week, an improvement over their predecessor.  Certs have withstood multiple devaluations in other parts of the Hilton Honors program.

Is a Hilton free night certificate now too valuable for the program to maintain at the current standard?  Naturally, many members have and will continue to focus on aspirational redemptions for these certs, including at now-200k per night properties.  Meanwhile, picking up buckets of certs isn’t exactly difficult, from Aspire and Surpass big spend bonuses and periodic welcome offers across the entire Hilton card portfolio.  I’m feeling like certs are due for a devaluation some time soon.

If and when this time comes, I hope it’s a move back to selected night redemptions, like their weekend limitations before.  Capping the value of the certs at a certain amount of points per night is a more drastic move but would be in line what other chains have done to theirs.  I’m keeping my eyes peeled here while my wife and I continue to earn and burn Hilton certs.

Earning Wins the Day

Hilton Honors members can earn significant amounts of points and rewards in the program to outrun certain devaluations.  Indeed, I feel travelers are equipped to do so with Hilton more than any other hotel loyalty program.  Amex offers four distinct Hilton credit cards where members can substantially plus up their point balances via welcome offers.  Certain ones periodically come with an additional Hilton cert, as well.  These cards feature attractive bonus categories in the 6x-7x range for meeting minimum spend requirement and beyond.

Indeed, Hilton and Amex make everyday spending on the cards rewarding from multiple angles.  For instance, spending on the Surpass can earn 6x on staple purchases while also contributing to the $15k big spend bonus threshold for another free night certificate and Diamond status qualification (if you choose not to simply buy that status via the Aspire).

Spread the variety of cards across two players in the same household, factoring in Hilton’s generous points sharing and pooling, and travelers can do even bigger things with Hilton Honors despite the recent devaluation.

What Hilton Honors Devaluation?

Let’s remember that Hilton Honors members don’t actually feel this devaluation unless they book a hotel subject to one.  And, depending on the brand, the devaluation is minimal, if there’s one at all.  Flexible travel timeframes make award night devaluations easier to stomach, as I’ve noticed lower-demand nights’ prices aren’t as drastically increased.  I’m actually more concerned about the devaluation of Hilton’s hotel amenities and services more than those affecting award prices.

Over time, I’ve noticed substantial devaluation effects in the Hilton Honors program, but again, that’s over more extended periods.  For instance, some of our preferred Hampton Inn and Hilton Garden Inn properties are around 30k points nightly.  I remember when they were 20k, but that was about ten years ago.

Part of the Deal

Of course, all loyalty programs devalue, and this is the prerogative of those entities.  Naturally, we’d prefer gradual changes over harsher ones.  Hilton Honors has trended toward the former in my recent memory.  As I absorb these devaluations, I optimize my actions to continue efficiently earning and burning.  These programs make their moves, and it’s on us to respond accordingly.  I enjoy the challenge and know many of you do, as well.

Hilton Honors Devaluation – Conclusion

Long story short, I’ve found the most recent Hilton Honors devaluation a nothingburger.  I feel I can more easily absorb award night price hikes than other devaluations often involving elite status.  I can simply earn more points, but I don’t have any control in how the program changes benefits.  But I’m concerned we may be due for devaluations on both of those fronts in the coming months.  Through it all, I’ll keep adapting to overcome and encourage you to do the same.

Is this most recent Hilton Honors devaluation affecting you?  If so, which property and why is the redemption still worth it to you?