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Is MeliaRewards moving to revenue based hotel redemptions from May?

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Is the MeliaRewards hotel programme moving towards revenue based redemptions?

Yesterday we told you how Shangri-La hotels is moving its Golden Circle programme to fully revenue based redemptions from April. The reward chart will disappear and you will receive a fixed $1 discount off your booking for every 15 points you redeem. It’s simple, but it’s not exciting.

Something seems to be ‘up’ at MeliaRewards too.

MeliaRewards devaluation

MeliaRewards often goes under the radar but has offered some great deals for points. Even if you never stay at their hotels for cash, Melia has run heavily discounted deals for buying points. They have even sold them on Amazon in the past at very low rates.

There were some great deals to be had here. When my brother came down to London last Summer, I put him in the 5-star ME London on the Strand. By buying points from Amazon I got a 2/3rd discount on the cash cost of the room, and my MeliaRewards Gold status from my American Express Platinum card got him an upgrade to a junior suite. It worked out very nicely.

Is MeliaRewards also moving to dynamic pricing?

Melia’s reward pricing always seemed random – they never rounded up numbers, so a room could be 23,483 points – but there was always some logic to it. Pricing seemed to be fixed for the first few reward rooms booked per night but then got more flexible. I’m not sure anyone ever worked out the formula.

What IS true, however, is that from 1st May the way that MeliaRewards is pricing its rooms seems to be changing – and for the worse.

Here’s an example.

ME London

On 13th April – under the current pricing model – ME London (above) is £361 for cash or 55,396 points for a ‘Vibe’ room. This is what I paid in points last Summer, when the cash price was £500+.

Jump forward to 11th May, and the same room is £350 for cash or 85,998 points. This is a huge increase.

On 7th June, the cash rate is £412 or the points rate is 101,235 points.

If you compare the two rooms above from May and June, you get exactly 0.407p per point. A £500 room would now cost over 120,000 points per night compared to the 55,000 I used last Summer.

The ‘pence per point’ rate varies by hotel

The rate per point seems to differ by hotel.

Take INNSIDE Hamburg which we reviewed here. The standard rate for this hotel is currently 23,154 points per night.

From 1st May, it seems to move to variable pricing of 0.36p per point. A £205 room in June is 56,594 points whilst a £106 room in May is 29,215 points.

ME Barcelona pool

Let’s move to the new ME Barcelona pictured above. In June you’re paying £257 or 69,092 points, so 0.37p per point. In September, a random night is 57,622 points or £215, the same 0.37p per point.

Stay before 1st May, however, and you pay a fixed 38,769 points per night unless the allocation of ‘standard’ reward nights has gone.

What’s happening here?

What seems to be happening is that:

  • at present, MeliaRewards offers a number of rooms per night at a low fixed points price, and once those have gone it moves onto dynamic pricing
  • from 1st May, it seems to be removing the ‘fixed price’ rooms and pricing ALL reward inventory at dynamic levels, somewhere around 0.35p – 0.4p per point

At Melia hasn’t made any announcements, we can’t be sure if this is strategic or if cheaper fixed price reward nights have simply not been loaded. It seems unthinkable that reward nights for May wouldn’t be loaded by mid January.

If this is a devaluation, you should be looking to spend any MeliaRewards points you still have by 1st May. If you don’t, you may find your points won’t go as far as you were expecting.


How to get MeliaRewards Gold status from American Express

How to get MeliaRewards Gold status from American Express (May 2022)

Do you know that holders of The Platinum Card from American Express receive FREE MeliaRewards Gold status for as long as they hold the card?  It also comes with Marriott Bonvoy Gold, Hilton Honors Gold and Radisson Rewards Gold status.

We reviewed American Express Platinum in detail here and you can apply here.

The Platinum Card has doubled its sign-up bonus to 60,000 Membership Rewards points, which convert to 60,000 Avios, if you apply by 1st June 2022.

You can discover the benefits of MeliaRewards Gold status on the Melia website here.

American Express Platinum card Amex

The Platinum Card from American Express

60,000 points (SPECIAL OFFER) and an unbeatable set of travel benefits – for a fee Read our full review

Small business owners may want to consider American Express Business Platinum instead:

Amex Platinum Business American Express

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

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

Comments (48)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Scandinavian traveler says:

    Happy to have just spent my last Meliá points this weekend at the ME Milan. Paid the equivalent of 100 euro per night when cash rates were 400 euro. Sad to see the Meliá deal go, it was one of the best redemption options available out there.

  • will says:

    I’ve personally never been able to make the points work for Melia despite staying quite a few times in them over the years.
    Gold 20% discount however combined with the cash + 2000 point rate can be a very good deal esp when hotel offers meal packages.

    For anyone stuck with points remember you can use them to cover F&B when staying at the hotels, although as always with Melia you are reliant on having someone serve you that’s actually competent.

  • Bagoly says:

    There is also “Points + Dollar”.
    (One needs to use Firefox rather than Chrome to get the sliding bar to show.)
    Here the pence per point for the first 2,000 points is good, but the marginal pence per point for more is even worse than for completely by points, and will even charge you more points than completely by points!
    E.g. Dresden in June:
    EUR152 or 34966 points.
    o r 2000 points + EUR138.04
    or 12000 points + EUR103.27
    or 37526 points!! + EUR14.50
    Here all points is EUR0.0043 per point, first 2k are EUR0.007, and subsequent are EUR0.0035.

    The good news is that the slider does mean one can use up small amounts of points.

  • Alex B says:

    Will standard pricing be gone by the end of the year? Who’s left?

    Scandic
    Hyatt
    Capped Hilton

  • Charles Martel says:

    Melia seem to have been missed off the list of schemes that offer lifetime status in the “Which hotel chains offer lifetime status?” article, although it is mentioned as being a status you can claim via the Amex Platinum card.

    • Rob says:

      In general, our ‘comparative’ hotel articles only focus on the core six global programmes, which doesn’t include Melia.

  • BJ says:

    Seems like Melia are buying telephone numbers from somewhere. I’ve had two text messages from them in past week despite never having stayed with them and not being a member.

  • MattB says:

    Anyone stayed at the level rooms in London? Just trying to work out what extras you get.

    • Rob says:

      Oddly I’ve never been into the Level lounge despite visiting the hotel many times – we even had 2 x HfP parties there! Key benefit is the lounge access so it really depends if they are currently running a restricted service or if things are back to normal.

    • Niall says:

      I have stayed in a Level room in Melia White House. The benefits are generally the same with any Melia Level room.

      You’re generally supposed to get priority check in, lounge access (free drinks and snacks), and enhanced room amenities or some such wording which means things like Nespresso machine, robe and slippers. Some give (say on the website) they’ll do late checkout for level rooms too but not sure about White House and it is subject to availability. You get late checkout anyway with MeliaRewards Gold status that comes with Amex Platinum.

      Some hotels have bigger/better areas for Level rooms like separate pool etc (or RedLevel in Hotel de Mar in Mallorca gives thermal circuit/spa access).

      Reviewers on tripadvisor, google etc often love to advise people to take the level option for the better treatment, but personally I don’t think I’d spend much on it, especially if you have an Amex Platinum (/Melia gold)

  • Gormlesstraveller says:

    11000, 17000, 28000 are the fixed prices of redemptions, corresponding to the category of hotel. As stated, there isn’t much availability.

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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