Mar062017

Hilton Honors reward nights points value analysis after March 2017 changes

Hilton Honors did away with their points charts for bookings made from March 1, 2017. The standard reward rate is supposedly pegged to the paid rate now and Premium Rewards appear to be more in line with Standard Reward Redemption rates in the new system compared to before.

Points & Money rewards are another one of the big changes with the option to spend from 5,000 points, or any number of points in 1,000 points increments, up to the standard or premium reward level with a maximum 47,000 points per Points & Money reward night.

For example, a hotel priced at 40,000 points for a reward night can be purchased as a Points & Money reward using 5,000 to 39,000 points. For any specific room on a specific date, the value of 1,000 points is fixed, meaning if 1,000 points reduces the room rate by $5.00 on the Points & Money rate, then redeeming 10,000 points reduces the room rate by $50.

The net effect is to give Honors points a set redemption value per 1,000 points. The variability comes with the value of 1,000 points for any particular room redemption. In general, Honors points used for Points & Money rewards generally have a value from $4.00 to $6.00 per 1,000 points depending on the hotel, dates and room type.

Examples of actual Points & Money reward rates provide a clearer picture of the changes.

Honors Points & Money Rewards Case Study:

Embassy Suites Monterey, California

Embassy MRY 47K

  • $185 Honors Advance Purchase rate
  • $189 Honors Flexible Rate
  • 47,000 Honors points Standard Reward
  • Advance Purchase Rate Standard
    Redemption value = $3.94/ 1,000 points
  • Flexible Rate Standard Redemption Value = $4.02 / 1,000
    points.

Points & Money rates are best compared to Best Flexible rate since cancellation terms are the same, but if you will book advance purchase rate, then need to compare redemption value since the standard reward remains the same 47,000 points price.

Easy way to see the value of Honors points per 1,000 points for any room type up to 47,000 points.

Set Points & Money scale to 1,000 points less (46,000 points) than Standard Reward rate (47,000 points) and you see the fixed redemption value of 1,000 Honors Points for a Points & Money reward night.

It looks like 47,000 points is the maximum number of points you can use per night with Points & Money rewards based on my sample searches.

Every 1,000 points is worth $4.02 towards a Points & Money discount rate for the basic 2-room suite at Embassy Suites Monterey.

Embassy Suites P-M rate

For Embassy Suites Monterey on this date for this room type, 10,000 points is worth $40.20 for Points & Money discount rate.

Embassy MRY P-M 10K discount

 

Honors Points & Money Rewards Case Study:

Hilton Gdansk Poland

Hilton Gdansk 19K

Last week I walked by the Hilton Gdansk, Poland. The location on the Motlawa River is perfect for tourism of Old Town Gdansk.

Hilton Gdansk

Hilton Gdansk King Guest Room with Courtyard View

Hilton Gdansk room 1 P-M analysis

  • $89 Honors Advance Purchase rate
  • $97 Honors Flexible Rate
  • 19,000 Honors points Standard Reward
  • Advance Purchase Rate Standard Redemption value = $4.68 / 1,000 points
  • Flexible Rate Standard Redemption Value = $5.10 / 1,000 points.

Hilton Gdansk P-M 1,000 rate

  • Points & Money Redemption Value = 20.88 PLN Polish Zloty / 1,000 points. 20.88 PLN = $5.12 USD.
  • The Points & Money Redemption Rate is the same for this room on this date with every 1,000 points redeemed reducing the paid rate by 20.88 PLN or $5.12.

Different Room Categories Have Different HHonors Points Redemption Values

A second feature of Points & Money Rewards is there are different redemption values for different room types at the same hotel on the same date.

The entry level room for Hilton Gdansk is King Bed with Courtyard View at 19,000 points for a Standard Reward and a reduction of $5.12 for every 1,000 points redeemed with a Points & Money reward.

The next higher category room simply states King Guest Room at 21,000 points for Standard Reward.

Hilton Gdansk 21K

  • $95 Honors Advance Purchase rate
  • $105 Honors Flexible Rate
  • 21,000 Honors points Standard Reward
  • Advance Purchase Rate Standard
    Redemption value $95/21 = $4.52 / 1,000 points
  • Flexible Rate Standard Redemption Value $105/21 = $5.00 / 1,000
    points.
  • Points & Money redemption value decreases for this room type.

Hilton Gdansk King Deluxe Room with River View

Hilton Gdansk 31K river view

  • $132 Honors Advance Purchase rate
  • $145 Honors Flexible Rate
  • 31,000 Honors points Standard Reward
  • Advance Purchase Rate Standard
    Redemption value $132/31 = $4.26 / 1,000 points
  • Flexible Rate Standard Redemption Value $145/31 = $4.68 /
    1,000 points.
  • Points & Money redemption value decreases more for this better view room
    type.

Hilton Gdansk King Suite with River View

  • $204 Honors Advance Purchase rate
  • $224 Honors Flexible rate
  • 47,000 points Standard Reward
  • Advance Purchase Rate Standard
    Redemption value $204/47 = $4.34 / 1,000 points
  • Flexible Rate Standard Redemption Value $224/47 = $4.77 /
    1,000 points.
  • Points & Money redemption value improves ($4.34-$4.77) compared to King River view ($4.26-$4.68) however, still lower redemption rate compared to entry level rooms ($4.68-$5.10).

Hilton Presidential Suite with River View

  • $531 Honors Advance Purchase rate
  • $584 Honors Flexible rate
  • 121,000 points Standard Reward
  • Advance Purchase Rate Standard
    Redemption value $531/121 = $4.39 / 1,000 points
  • Flexible Rate Standard Redemption Value $584/121 = $4.83/
    1,000 points.

Standard Reward redemption value for these different room types at Hilton Gdansk ranges from $4.68 to $5.10 per 1,000 points based on Flexible Rates.

Hilton Honors has basically given their points a fixed value range between $4 and $5 per 1,000 points for Standard Rewards.

 

Hilton Gdansk King Deluxe Room with River View

Standard Reward = 31,000 points/night.

Points & Money Reward 1,000 Points = 19.06 PLN / $4.68 USD.

Hilton Gdansk P-M King Deluxe River

Hilton Gdansk Presidential Suite

Standard Reward = 121,000 points/night

Points & Money Reward 47,000 points + 1,446.70 PLN /  $354.99 USD.

47,000 Honors points reduces the rate from $584 to $355.

$229/47 = $4.87 USD redemption value per 1,000 points spent for Points & Money reward on the Presidential Suite.

I analyzed Hilton Budapest (Castle Hill hotel) and found similar redemption values from about $4.50 to $5.00 per 1,000 points for Standard Rewards and Points & Money rewards.

Conclusion

Two hotels is not a sufficient sample to make definitive conclusions, but I did not find any room redemption values over $7.00 per 1,000 points when using points for Points & Money stays.

I happen to have a Hilton Points & Money reward stay I booked two weeks ago for 16,000 points + $66. The same room today is priced at 16,000 points + $196, while the paid room rate $244 and only $20 more today than the $224 rate shown two weeks ago when I booked the Points & Money reward stay.

My redemption value per 1,000 points for my Points & Money reward stay is $224 – $66 = $158.

$158/16 = $9.88 per 1,000 Honors points.

Under the new system of Honors Standard, Premium and Points & Money Rewards, I don’t know if it possible any more to get a redemption value approaching $10 per 1,000 points.

Looks to me with my initial analyses of Honors Standard Rewards, Premium Rewards and Points & Money Rewards that redemption value of Honors points are fixed within a narrow $4.00 to $6.00 range in this new system of reward pricing effective March 1, 2017.

 

 

 

About Ric Garrido

Ric Garrido of Monterey, California started Loyalty Traveler in 2006 for traveler education on hotel and air travel, primarily using frequent flyer and frequent guest loyalty programs for bargain travel. Loyalty Traveler joined BoardingArea.com in 2008.

More articles by Ric Garrido »

Pingbacks

Comments

  1. Definitely a devaluation.

    Same hotel/room that I booked for 357,000 points for a week now can be booked for 1,078,000 points. That is 3 times more the original booking.

  2. While most hotels seem to be in the $4-$6 range, I have seen $9 at Maldives and also at KUL Doubletree, so still possible to get good values.

  3. In addition, re:all-points redemptions for standard rooms, they are using the lower of the highest monthly rate allowed under their old tier system and a rate averaging in the same rate range you found. Too early to tell if more properties are pulling standard rooms yet ( I.e. Times Square
    New Year’s Eve, etc.

    All other room categories are worse than that, going down to as low as a bit over $0.002/ point. No reason to buy Hilton points anymore during Daily Getaways.

  4. Total failure

    Hilton reps say this is great, pro-members.

    The results are terrible, just awful.

    Try doing a five night stay reward booking, it’ll say 23,000 per night on the list then when you go to the detail it goes up to 40,000. No reference to “free 5th night”.

    There is a combination of software bugs and straight up misrepresentation by Hilton.

    This will be the last year of Diamond for me. Let’s hop that Marriott/SPG do not do this or we will simply go to Trivago everytime we travel, loyalty seems to work only one way with Hilton.

  5. I agree, it’s a devaluation for people who care about the value of there points, but easier for infrequent travelers who just want to book a “free”room. The rates for hotels with previously ridiculous reward rates are now slightly better.
    I do think your analysis is off with regards to the value of the points, as it doesn’t take the taxes into account! In locations with high taxes or service charges, like SE Asia, taxes & fees can be around 20%.
    For Cash & Points rates, the slider on the right only shows the pre-tax price and you have to hit the “update” button to see the impact on taxes & fees.
    Another blogger found that P&C rates don’t incur resort fees, at least in some places, so a minimum points use could save a lot!
    There is still some value in low-category hotels – but I expect that to go away once Hilton feels no longer bound to keep the maximum reward rate at the current rate. I’m trying to use my Honors points as soon as I can find decent value!

  6. never mind the resort fee – You actually pay the full resort fee even when booking with a minimum amount of points. So, the fewer points you use at hotels with resort fee, the less value per point.

Comments are closed.