What are your thoughts now the Hilton changes are live?

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The major changes to the Hilton Honors programme (which included the new spelling of Honors) kicked in yesterday.  There were some IT wobbles initially, but by the time the USA was waking up things seemed to be running more smoothly.

As I outlined in this article here, here are the key changes.

The main one is the scrapping of the old ‘points and money’ scheme, which offered excellent value on the occasions – few in my experience – when hotels chose to offer it. It is replaced by a radical version of ‘points and money’ which is unlike anything else we’ve seen.

There are two elements to this and it is easier to explain if I look at them separately.

Hilton_Honors new logo

Firstly, for every standard room redemption, you can now pick a combination of cash and points.  This will be driven by the points value and the Hilton HHonors member cash rate.

Let’s assume that a particular hotel is selling for 50,000 points or £200.  You can now pick any combination of the two as long as you use at least 5,000 points.  You can pay 50,000 points or £200 or 25,000 points + £100 or 5,000 points + £180 etc.

Here is the second part.

The maximum points price for a room will be the top end of its old reward category.  However, off peak points prices will fall sharply.  This effectively puts a floor under the value you will get for a Hilton point.

You will remember in our review of the Gran Hotel Montesol that it was selling for 95,000 points or €600 in August but 95,000 points or €270 in May.  Under the new system, it remains 95,000 points in August but the May price is now (picking 8th May at random) 55,000 points.  The cash price on that date – fully flexible member rate – is €291 so you’re getting 0.45p per point.  Not too shabby.

There are other changes coming too:

free points pooling amongst friends and family

the option for selected Diamond members to pause their membership for a year for any reason, possibly during a period of redundancy, changed travel patterns, maternity leave etc

for US members, the option to redeem points for merchandise from amazon.com

These changes are further down the line, however.

So, what has happened in reality?

The emails I received from readers yesterday were split between positive and negative.  Some of the negative ones were from people who had been fooled by Hilton’s IT mistakes – the ‘monthly view’ page, for example, was showing Premium Room prices instead of Standard Room prices.  You had to click through to get the correct rate.

Here are a couple of genuine examples from my own travels:

Conrad New York

I have the Conrad New York, photo below, booked for three nights in June.  It is a great hotel, not least because it is ‘all suite’.  The room I had booked was 70,000 points.  Today, the hotel is 80,000 points.

Why?  Because, whilst Hilton promised not to increase any redemption prices, what they actually said was ‘we will not change any redemption prices beyond the caps of their old category’.

I think Conrad New York was Category 9 which meant anything between 50,000 and 80,000 points.  Hilton moved the cap from the old June price of 70,000 points to 80,000 points.  If you were planning to redeem here, you’re worse off – at least in June.

However ….. look at this in context.  Based on the refundable member cash rate of £415 for my dates, you are still getting over 0.5p per point of value which is far better than usual with Hilton.

Conrad New York 350

Waldorf-Astoria Beijing

On the other hand, I need two nights in Beijing next month.  I think the Waldorf-Astoria in Beijing was 80,000 points although I can’t be sure.  Now, however, it has dropped to 56,000 points per night.

Given that the hotel is selling for over £300 per night on my dates, this is a great result.  I will be getting over 0.5p per point.  If I transfer over Amex Membership Rewards points in order to book this, I will be getting over 1p per Amex point which is excellent.

Conrad Tokyo

I am also doing three nights at the Conrad Tokyo next month.  It is now sold out for my dates, which are booked at 95,000 points per night.  If you want to book a room for next week, however, it is available for as little as 59,000 points.  That is great value for what can be a hugely expensive city.

Hilton Sheffield

Regular readers will know I often use the Hilton in Sheffield as an example of a mid-tier hotel as I’m familiar with the property.  This used to be 30,000 points.  On a random date this month it is coming up as 26,000 points – a decrease – or £96 for Best Flexible Member Rate.  You’re getting 0.37p per point here.

Note that none of the ‘pence per point’ figures factor in the points earned if you paid cash for the stay instead of using points.  You should make an adjustment for that, especially given the current generous ‘2000 bonus points per night’ offer – see here.

In general ……

For ‘all points’ redemptions, you may well be better off.  Check any existing Hilton redemption bookings in case you need to rebook.

It might make sense to use points now when it didn’t in the past.  In a few cases you will be worse off where a hotel has moved its cap to the top of the previous redemption category.

However, if you were previously a fan of ‘points and money’ then you will undoubtedly be worse off.   I wasn’t, to be honest, but that is because my kids generally oblige me to travel at peak times to peak cities where ‘points and money’ was never an option.

PS.  Here’s a little secret

Using any amount of points (the minimum is 5,000) appears to make the booking act like a redemption.

What does this mean?  It means NO SERVICE CHARGES.

Let’s take Conrad Tokyo as an example.  On the 13th March it looks like this:

Cash rate (Member Best Flex):  Yen 34,300 + 9% tax + 15% service charge

Points:  59,000 points

Smallest ‘points and money’ option:  Yen 31,375 + 5,000 points + 9% tax + NO service charge

In this example, I redeem 5,000 points and I save Yen 3,188 including tax on the rate PLUS I save Yen 5,145 because I don’t pay any service charge!  This means a total saving of Yen 8,333 (£59) for spending 5,000 points.  This is an excellent return.

Conclusion

It will take a while for the Hilton Honors changes to bed down.  For now, unless you were a big ‘points and money’ user, you will usually be better off or at least no worse off.  ‘Points and Money’ fans are in a bad state, I admit.

The real risk is if / when Hilton starts to increase the redemption caps on the properties.  If they go, or are increased sharply, you have moved by a stealth to a pure ‘revenue based redemption’ programme.

I don’t think Hilton wants this, if I’m honest, because when you remove the lure of outsized redemptions Hilton points become a lot less interesting.  Look at the attention given to Le Club AccorHotels for example.

With a pure revenue scheme you would know the exact value of a point and it is easy to compare that with, unfavourably, the value you’d get from booking on hotels.com instead and taking Hotels.com Rewards credit.  And that isn’t a place Hilton wants to go.

(Want to earn more hotel points?  Click here to see our complete list of promotions from the major hotel chains or use the ‘Hotel Promos’ link in the menu bar at the top of the page.)

Bits: Amex Platinum (US) goes metallic, £19 Monarch deal, Uber hits Chichester
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Comments

  1. Sundar says:

    I checked for an upcoming trip for a Saturday night – The cash price for the night seems to go up when trying to use Points plus Cash – Redemption rate is good though – 113 pounds for 20000 points ! Advance purchase is 99 pounds.

  2. Thanks all! That’s kind of what I thought. It seems to simply be a bit of a marketing ploy in that case!

  3. Andrew (@andrewseftel) says:

    Yes this is correct.

  4. Lumma says:

    I remember getting one of these “credit builder” cards back in the day. On setting up the account they offered to advance me the entire credit limit (Or almost the full amount) into my bank account.

    Top marks for responsible lending right there.

  5. Ammar says:

    Ot – Im currently Blue with BA, I have 40 tier points so far this year. I have got a ex-Belhium Qatar Business flight to CGK in April and a BA connecting flight. Need to book another BA/IB flight this year to get the 4 legs plus 600 TPs to get silver, wondering is it worth it for silver?
    Also, if i get silver before my TP year ends in early May, will it last till May 2018?

    • David says:

      If you get promoted, you have status for the remainder of (your personal) TP collection year that you earn it in, plus all of the next.
      So if you get Silver before your year end on the 8th May 2017, you would have it for all of this year (until 8th May 2017). plus all of your next year (until 8th May 2018).
      And your issued Silver card expiry would almost certainly be June 2018.

      Is it worth it, always a personal question. Only you know your travel pattern and what value (and or simply enjoyment) you would get from making use of the status.

    • AndyR says:

      If I understood correctly you will need 2 more legs on BA/IB to get Silver? If so then I definitely would! That will get you seat selection as soon as you book, lounge access and 50% more Avios. Just find a cheap return HBO fare.

  6. Simon says:

    I have a midweek August booking on points at the Conrad New York, where the points required is down by 3K per night. If I cancel to rebook, do the points go straight back into my account? Thanks

    • Elaine says:

      Yes, they do. I’ve just done that for the Hilton Auckland. The number of points needed in Auckland dropped by 3000 per night for our dates.

    • Jonny says:

      Not instant, but within a short time (under an hour)

    • Peter K says:

      A couple of months ago I cancelled and rebooked and they were back in my account immediately (after logging out and back in again).

    • Simon says:

      Thanks all. Just cancelled and rebooked with the 4% discount. I wasn’t shopping around but it does look like the algorithm is throwing up some interesting results in New York – at a glance there are definitely some notable changes (up and down). If it’s availability driven then it’s easy to see who has space and who does not across their portfolio…

  7. What's the Point says:

    My personal situation of future bookings look like I locked in some good cash+points redemptions. As all of them have gone up in price since the changes.
    However on the flip side, full points redemptions for some of the hotels we were looking to stay at have gone down by 25-40% for points required.

  8. Nick Burch says:

    OT, but Hilton related. Just had an email from them saying that I’ll earn 1000 more bonus points per night (1k + normal 2k) for weekend stays during March. Looks to be targgeted, but worth checking your email / spam folder for in case you got it too!

    This offer is valid for select Hilton Honors members who receive this offer after registering for the “2K Every Day” promotion and is not transferable. This offer is valid for all stays completed between March 1, 2017, and March 31, 2017 (“Promotion Period”). Select members will receive 1,000 Bonus Points per weekend night within the Promotion Period. Weekend nights are defined as Friday, Saturday and Sunday nights.

  9. Nate1309 says:

    Don’t know if this has been posted but just came up on god save the points Facebook. But Avios points for $0.67 each. http://www.godsavethepoints.com/news/2017/3/2/british-airways-avios-hilarious-promotion-cheap-miles

  10. Sorin says:

    I just had a look at the Conrad example regarding the service charge reduction and it seems that might have been a system bug. Using 5000 points just reduces the total cost for me by about 2000 yen.

  11. HIDeHi says:

    Looking at Seattle, Los Angeles, Mexico City and Stockholm, it seems that there is a definite link at the lower level between the cash price and the points price. Whenever I see an uneven points price (e.g. 27k points a night, the cash price ends up being pretty close to exactly 5 times that in USD, e.g. $135).

    Basically they seem to have changed it so that the points price is now whichever is the lowest of- A) the max points price under the old pricing band for that hotel or B) the cash rate for that night converted to points at $5 per 1000 points rate.

    A good example of this is in Mexico city where the 5 star Hilton is 29k points a night or $145 cash, and the 3 star Hampton Inn is 10k(the maximum for this hotel’s points category) a night or $160

    I guess this also means that you now will rarely get less than $5 per 1000 value on Hilton redemptions but also you will rarely get more than $5 per 1000 value unless the hotel’s cash price converted to points exceeds the points cap for that hotel.

    I don’t really see much improvement here unless you are someone who has lots of Hilton points and were struggling to get at least $5 per 1000 of value for them. The main value I saw in the Hilton program was in their 10k a night hotels, so at least for now these remain. These are few and far between though so mostly I will be avoiding the Hilton program.

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