Ok, so we’ve taken away “award charts”, which made it really easy for you to know how many points you’ll need for a dream trip, but we’re not raising price. That’s what Hilton said in 2013 before raising prices, then again in 2017 before raising prices, and now again in 2021.
You guessed it, before raising prices.
If some loyalty programs are hellbent on driving people to earn cash back from credit cards, rather than loyalty points from their hotels or airlines, they’re doing a wonderful job. If they’re not, it’s time to hit the panic button.
Being that loyalty programs are often far more valuable than the brands themselves, such as American Airlines ‘AAdvantage’ loyalty program being valued 3x higher than the airline and its planes in recent disclosures, pushing people away in the numbers that they are, might not prove to be the greatest strategy to retain that value.
A Hilton hotel room booked with points can now cost up to 150,000 points per night, which basically means you’ll need to be a Hilton millionaire to unlock any meaningful stays at the best hotels. It’s the latest “devaluation” in a string of lip service moves in which the brand says one thing, and the points do another.
Hilton’s New 150,000 Points High: A New Low
When Hilton raised the top shelf of points costs from 95,000 to 120,000 per night, there was outrage. Every time the brand has said “no higher rates coming”, they do the opposite.
The dust had barely settled on the new 95,000 tier, which put many aspirational hotels out of reach for most Hilton Honors points collectors, when the goal posts were moved even further, to 120,000 points per night.
Unless you’re a frequent guest, huge spender on a Hilton credit card, and have elite status to unlock 5th night free perks when cashing in points, the program is really hard to justify participating in at this point.
Options like Hotels.com, or just being a free agent and staying wherever is most agreeable on a case by case basis, rather than being brand loyal, is just a lot easier.
As unveiled by Gary Leff at View From The Wing, Hilton is no longer theoretically raising the maximum number of points a hotel can charge, it’s actively doing so. The Waldorf Astoria Maldives now charges up to 150,000 Hilton Honors Points per night for a room. Of the few that are available using points, standard rates require 150,000!
It may just be one hotel for now, but this is always how it starts. Once one does it, and the system is prepared for it, others can too. Top hotels like the Waldorf Cabo could easily introduce this in minutes, hours, or days.
Sure, you can earn 150,000 points from a Hilton Honors Amex bonus right now, but one night doesn’t quite have the sex appeal for taking out a credit card, particularly when factoring the $500+ in required speed boat transfers, just to get there.
But hey, the night is “free”?!
The Conrad Maldives feels like a “bargain” now, still holding at the previous 120,000 points per night Hilton Honors high, which it paved the way for.
Of course – there are plenty of other Hilton properties where hotels top out at lower value. Top properties like a Conrad Osaka still charges 95,000 points per night, and that’s what you’d pay in most big city five star hotels.
Points still can unlock costly hotels and be worth collecting, but there’s a cost to earning points, even if it’s just opportunity to earn other points. If the goal posts move far enough, people tend to bail.
With the hotel industry reeling, and cash rates down in most cities, it’s hard to square the points devaluation with cash prices.
Unfortunately, it’s actually rather easy. Hotels aren’t quick to correct points pricing, even in down markets for cash bookings or declining room rates. Even if cash rates become reasonable and arguably “cheap”, points rates may remain high to discourage the use of points!
Loyalty teams and that value of what loyalty brings are undervalued when times are good, and then when times are bad, executives often try to squeeze any added juice out of these overlooked programs, to make the overall business look better.
Hilton Sends Mixed Signals
Hilton was a leader in retaining loyalty throughout the pandemic, with swift and decisive moves to extend elite status, points and other benefits. It was also super aggressive in going after new elites, with tempting fast tracks requiring as little as 9 nights for tip tier status.
But now, it’s changing the goal posts for the most aspirational values, which are often the main draw to loyalty programs. People want their loyalty to unlock doors they are uncomfortable paying for, or just want to feel maximum love for being brand loyal, and cashing in points for the best properties recognize that feeling.
There are lots of hotel programs to choose from, each with varying levels of points required for redemptions. If Hilton keeps raising the prices, it might force members to look elsewhere.
IMO a signup bonus for a hotel credit card should offer a signup bonus of at least two nights at a very top tier or just below top tier level property after spending a few thousand or more dollars. Hilton’s litany of devaluations isn’t leaving much residual value in their points, which means that the only decent value is having Gold status and paying for nights when you can find a tolerable paid rate and use the rapidly depreciating points for some poor value option as quickly as possible before Hilton takes even that little away. Hilton certainly has a strange way of dealing with engaged customers.
I am a diamond member. It means simply nothing to hilton branded hotels. I have been staying in various hiltons for 3 months now for work purposes. The quality has gone down. Most front desk employees are rude and not helpful. Many GM s are never around. I have spendt thousands staying in hiltons. I will rethink my honors membership.
I became tired of chasing the points – the increase in points needed has been infuriating. I moved to hotels.com, stay 10 nights and get 10% total spend back for the next stay. It’s very liberating! You always stay where you want, period. No compromising, no searching your preferred brand’s websites for something within an acceptable distance, etc. Pay with a cash back card to increase your savings. Liberate yourself from the hotel chain’s chains!!
My wife and.i always stay the night before we fly abroad
Do you do a loyalty reward card or a discount card we have stayed in hilton hotels.
I was displaced last year and stayed at a Homewood Suites from June thru October. Im Diamond so i was able to get a set price. After 30days you no longer pay the hotel tax. I alternated points and cash. King 1bd Suite was
23,000 -27,000pts..now its 53,000pts. Just wrong
It’s not just the tier one properties. Many of the Hilton properties I’ve stayed at over the last couple of years have seen 10-20k increases in points requirements, representing 20-35% increases in a short period of time. At these redemption rates, Id rather switch loyalty to Hyatt and at least enjoy better properties and customer service. This sucks as I’ve really appreciated the value hhonors used to bring but point creep has eroded the value.
Hilton Garden Inn was my go to property. Now, I doubt I ever pay for a stay at Hilton again. Service is down, and they’ve made it clear they intend to continue cutting to “inprove” their bottom line. For me they’re only a slight upgrade from Motel 6 now.
Heading to Hilton.com, the points required PER NIGHT is 851,000 !!! I have two million points and could not travel and stay for more than 2 nights.
Hey M.K,
Yeah they opened up these ‘anytime’ kinda nights to make it so they’re able to say points nights are available almost any night, but the values are horrendous. Never worth doing anything other than a standard night redemption, because as you say they don’t go very far on the dynamic nights.
The legal term is CRIMINAL FRAUD. Where is the Justice Department on this one? You take money under false pretenses from millions of Hilton customers over a long period of time enticing them with a rewards structure that is clear. Then Hilton simply gives half or less of the promised reward. It’s a crime, plain and simple. Let’s see what the Justice Department does or any one of the state attorney generals. Likely NOTHING. This kind of justice doesn’t sell tickets on the American news.
Not sure what’s worse – Maldives Waldorf Astoria new hotel transfer cost of $850 PER PERSON, or this new 150,000 point (if you’re lucky) per night room cost. Both are disgusting.
Yep, gross. It’s like the no points booking insurance policy. Even if someone’s a points millionaire, they’ll need to be a cash millionaire as well just to reach the property hah.
…and they still can’t/won’t guarantee a late checkout.
I just got the Hilton Amex and now my 200,000 points look like shit! I switching to the Marriott Amex
Just signed up for the AMEX Hilton card with 150,000 point award after minimum spend, thinking it was a great deal, like the IHG card I received last year. WRONG! I just looked to book a room in Amarillo, Tx where there are scads of highway hotels. The least expensive points award was 26,000 a night, with most being 30,000 a night! I’ll keep my equivalent IHG hotel I booked for 13,000 points! Marriott still has reasonable point awards also. I won’t renew this Hilton AMEX.
I’ve just gone to book a room at the Hampton Hilton, Bristol Airport for 15,000pts, as usual, only to find they’ve increased it to 25,000pts! 67%? Unbelievable!