Hilton Honors quietly DOUBLES the price of many of its cheapest redemptions

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• Joe says:

  16 Sep16 September 10:40

  Although I don’t like these increases, isn’t the idea behind the ‘new’ Hilton system that these are caps and the number of points will change depending on how much the cash rates are? When other hotel schemes change their points prices for hotels it typically changes the rate on every night, but with Hilton it should only change it for nights where the cash fees are high. This means you should normally be able to get ~0.3p per point as a minimum, because on nights with cheaper cash rates the number of points drops to match this (and this is how the points are valued on cash+points nights, where you can pick the mix of points/cash you want to use).

  I try to hold out for redemptions that are worth more than ~0.3p per point, which only happens when the points rates hit the cap, and these changes make that likely to happen less often, but at least there is still a floor to the value of a point, which I don’t think IHG/Marriott/Hyatt have (since if they doubled the points price, it would pretty much double every night, regardless of the cash rate).

  • John says:

    16 Sep16 September 11:42

    Yes but for hotels capped at 10k points the paid rate would have to be around £35 before you start to see the points required drop. And the paid rates at these hotels can sometimes be over £100 so you see why they don’t like people arbitraging on points

    • TGLoyalty says:

      16 Sep16 September 13:47

      Then at your value 20k is £70 and if the cash rate is £100+ it’s still a good deal? Even if you wouldn’t pay £100+ if it’s where you need to be the market says that’s what you have to pay.

      Personally I tend to treat points as a way to get value when cash rates are high. I wouldn’t use 20k points for a room costing £85 for example. Ofcourse everyones strategy/view is different.

      • John says:

        17 Sep17 September 10:20

        No you’ve completely misunderstood or I’m not good at expressing myself. I was not commenting on what I would pay or how I would personally decide between paying or redeeming.

        Firstly, reread the top-level comment by Joe.

        A hotel in the old Category 2 was always 10000 points, a hotel in the old Category 3 was always 20000 points, regardless of the paid rates.

        The new points system means that the old category amounts are now just maximum prices. So theoretically hotels in the old Cat 2 can now charge less than 10K if their paid rates are low, and hotels in the old Cat 3 can now charge less than 20K if their paid rates are low.

        Hilton’s valuation of their own points is around 0.45 US cents. So in practice, old Cat 2 hotels will always be 10K unless the paid rate is less than US$45; and old Cat 3, US$90.

        As seen in this devaluation, most of the old Cat 2 UK hotels were moved to Cat 3. (Obviously, the categories still exist in Hilton’s backend).

        The cheapest I’ve ever seen a UK Hilton/Hampton in the past 5 years is £37. So no UK hotel is ever going to be less than 10K points, regardless of Hilton’s spiel about cheaper redemptions at off-peak times. If the pound miraculously improves to US$1.50 then perhaps 9K very occasionally.

        However, the hotels that have now jumped to Cat 3 sometimes charge £50 and sometimes £100 or more. When they are less than around £70, then the points required might be lower i.e. 15K to 19K.

        I don’t know how Hilton pays hotels for redemptions but based on an old Loyalty Lobby post, it is possible that they get about £35 for a 10K redemption. When 10K was available as an alternative to a £100 paid rate, the hotel’s rev man would not have been very happy, so moving to 20K is reasonable from their POV.

• Travel Strong says:

  16 Sep16 September 10:45

  The Newport Hampton Inn also has a terrible problem, which they know about, and which means I could not be paid to stay there.

  The AC is incapable of keeping rooms cool, and the windows do not open. It is a new “highly efficient” building, which is so insulated that you will roast inside even in winter.

  The room temp will climb and climb no matter what.

  Staff are met every night by weary travellers who cannot sleep in the heat, they are well versed in it, handing out fans and promising they will look in to it.

  But the entire AC system is completely incapable, and there is nothing desk staff or maintenance can actually do.

  • Jenni says:

    16 Sep16 September 11:10

    The HIE at Chester Racecourse has the same issue (except that it doesn’t even have AC), the rooms get unbearably hot in the summer so you might as well sit in the car park all night, might get a better night’s sleep there!

    • TGLoyalty says:

      16 Sep16 September 13:48

      Any new or refurbished hotel without adequate AC shouldn’t even be in business.

  • sunguy says:

    17 Sep17 September 15:03

    OT but similar….

    The Queen Mary (ship on Long Beach, CA), has about 60 rooms that the A/C does not work in…..they just cant be bothered fixing it……….

• Anna says:

  16 Sep16 September 10:57

  Glad I didn’t buy any points in the promotion now, especially with the awful exchange rate. The Hilton Manchester airport is a good deal for us at (currently!) 30,000 points as we usually need a family room the night before a long haul flight. Otherwise I’ll put any points earned towards my stash that I’m hoping to use for a 5 for 4 redemption – while it lasts!

  • TripRep says:

    17 Sep17 September 08:34

    Good on getting a family room, for a double I find Manchester Airport for 30k is pricey compared to a cash rate of £80ish

• Peter K says:

  16 Sep16 September 11:06

  I still think that Hilton points are a good deal, just at the right properties. I think Ghengis’ plan of earn and burn is the way to go though.
  I agree that putting them up without notice is a poor show but value can still be had.

• Will says:

  16 Sep16 September 11:37

  Hilton used to be the brand I’d always try first.
  Great recognition of status, lots of hotels, generous points offers and some really seeet redemptions (esp cash and points).

  Not gone out of my way to do so but I’ve found myself at Marriott/SPG and IHG more of ten than not over the last couple of years. Ocassionally there will be a sweet spot in a Hilton redemption but they are few and far between.
  I’m actively trying to run down my Hilton points, spent quite a few on their experiences auctions which I’ve enjoyed and represented good value.

• George S says:

  16 Sep16 September 12:26

  Doubletree Newcastle Airport was already 20,000 points by 30 August at least.

• Kevin says:

  16 Sep16 September 12:45

  Any idea if there was Hilton/iHG global sales would start any time soon as trying to book some stays in Bangkok.

  • Rob says:

    16 Sep16 September 14:41

    Hilton has an Asia promo running next week, we will cover it and they’ve booked some ads.

    • BJ says:

      16 Sep16 September 20:22

      Hilton promos in Asia are typically fake, if this one bucks the trend it will be the first.

    • BJ says:

      17 Sep17 September 07:49

      InsideFlyerUK has run with it today, same old Hilton nonsale. Doubt the added dining discount willpersyade many regular Asia travelker to eat at their hotel.

      • John says:

        17 Sep17 September 10:22

        Noticed the Bangkok properties recently hiked their prices perhaps in anticipation of the “sale”. Been checking fortnightly to see if my flexible rates for October, booked months ago, have dropped.

      • Chris Palmer says:

        17 Sep17 September 14:46

        Yes, I agree with John. I’ve been looking at Bangkok recently, and the prices jumped. Automatically assumed a “sale” was on the way!

    • James says:

      17 Sep17 September 19:42

      It will have to be pretty fantastic to tempt me. Looking at a month in Thailand in December.

• Adam says:

  16 Sep16 September 12:52

  OT but Hilton. Which hotel in London would you recommend for a birthday treat on points? Lounge not that important but central location (within 30 mins tube from Westminster) and a larger modern room are important. As the rooms in London tend to be so small :(. Gold member if it matters.

  • Clive says:

    16 Sep16 September 13:08

    I would say the Conrad

    • Dan says:

      16 Sep16 September 18:54

      I’d go Bankside. Much more interesting area, fewer points/pounds and a great restaurant and lounge.

      • Chris says:

        16 Sep16 September 19:47

        +1 Bankside, great property. Conrad nice but not big rooms.

        Both locations quiet at weekends.

        The Trafalgar very nice too…

    • BJ says:

      16 Sep16 September 20:24

      Doubletree Westminster.

    • john says:

      17 Sep17 September 10:02

      Conrad St James is a nice hotel. It’s easily walkable from Victoria or Westminster but it depends what you want to be close to as other options might be better

      • Rob says:

        17 Sep17 September 10:16

        Conrad is the nicest Hilton in London if you’re Diamond due to the lounge. Bit of a building site for 2-3 years as Scotland Yard was literally next door which has just been demolished and will be replaced with flats. Location OK but feels odd. Bankside possibly better all-rounder and best trade-off between location and quality, but never seen the rooms there.

  • Adam says:

    17 Sep17 September 15:16

    Thank you for the insights!

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