Three waves of Hilton Devaluation (Summary)

Discussion in 'Hilton | HHonors' started by MyTravels, Apr 9, 2013.  |  Print Topic

  1. MyTravels
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    MyTravels Silver Member

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    1) Change of categories – Hilton moved from 7 categories to 10 categories and added seasonality. This is very confusion and it is virtually impossible to know the points needed for a redemption without the search tool as some properties have no "low season" and several categories have the same "low season" point level. Date that this took effect : March 28th
    2) Elimination of the GLON's – Following Starwoods industry-worse multi-night award discount, Hilton eliminated the GLON's which provided award discounts of up to 25% off for 5+ consecutive award nights booked (20% off only if staying increments of 5 consecutive nights). Date that this took effect : March 28th
    NOTE: Marriott, which had 2-7 night stay award discounts also went to Starwoods "5th night free" a few years ago so now all the majors either have no multi-night discount or the same up to 20% off only in increments of consecutive 5-night stays.
    3) The third wave is here: AXON's will be adjusted for category 5-7 hotels (and category 8-10 added). The good news is that AXON's are still around (first reported on MilePoint and confirmed by ThePointsGuy), although I have not seen anything regarding what the "adjustments" will be. Date that the adjustments will take effect: June 15th.

    For those hotels that are still Category 5-7 and you may be staying during during Peak season it may make sense to proactively book AXON's.
     
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  2. NYCUA1K

    NYCUA1K Gold Member

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    This is no different than searching for airline ticket fares, which have had seasonality for years, so, welcome to the adoption of the standard airline pricing scheme by a hotel chain, complete with a search tool. This will soon be adopted by other hotel chains...just you watch
    Continuing the analogy, in a move to remain competitive with other US carriers, United today announced that it would begin charging a fee for checked bags that go beyond the stopover point at which the bags would be switched to another carrier. The example is mainly for illustrative purposes (not a real UA policy change...yet), but it makes the point. Hilton simply wanted to remain competitive in its market. Programs adopting other programs' policies is nothing new, as the OP clearly documents above. Note that Hilton's changes seem to be geared toward matching its closest competitor in terms of size, SPG. A joke at TOBB was always that UA would not offer a DEQM promo unless or until its closest competitor then, AA, did it first :D, but I always thought that it showed that UA was in the stronger position.
    A ray of hope...
    A search for a way to "game the system"... thumbs-up.png

    P.S. Rather than a condemnation of the so-called devaluation, the post above explains why such loyalty program adjustments as rates/categories changes are inevitable. The question is what the consumer does to adapt to the changes...
     
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  3. Mike Reed

    Mike Reed Gold Member

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    Did we really need another thread on this?

    Sent from my iPhone using milepoint
     
  4. NYCUA1K

    NYCUA1K Gold Member

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    Probably not because there is nothing new, unique or earth-shattering that happened. One can read this blog, replacing SPG with HHonors and it will be clear that what happened in HHonors on D-Day is actually quite banal...really. Check it out, even the adjectives and quotation marks...
     
  5. MX

    MX Gold Member

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    Gee, tough crowd here. I thought it was a good summary. Sure beats another report from a delayed plane or airport bar. ;)
     
  6. Mike Reed

    Mike Reed Gold Member

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    Except that there's an entire "war and peace" thread on this already.

    Sent from my iPhone using milepoint
     
  7. Photonerd71

    Photonerd71 Silver Member

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    Or another "united hates elites" thread.....oh wait that would be on FT, never mind carry on. ;)
     
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  8. tommy777
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    tommy777 Co-founder

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    It's a free country and no moderators here. All good in my book ;)
     
  9. Mike Reed

    Mike Reed Gold Member

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    I'm not asking for moderation - just consideration.
     
  10. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    If you don't like a thread, perhaps don't rely or just with a link to the existing thread for further information.
     
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  11. MyTravels
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    MyTravels Silver Member

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    I'm not sure how many people are aware of the 3rd wave (AXON's), so rather than just posting specifically about them, I tried to include an overall summary.
     
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  12. kyunbit
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    kyunbit Silver Member

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    Hotels have seasonality for paid nights ala airlines. However. the airlines mostly charge the same number of miles whether you travel in peak or off-peak season. There are some airliens that offer off-peak discount, but that is not the standard.
     
  13. Mike Reed

    Mike Reed Gold Member

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    I don't know that that's the case. American and US Air explicitly have off-peak awards, Delta has Low/Medium/High (availability based on peak periods), an United offers saver awards based on availability, which is less during peak periods. They may not call it peak/off-peak, per se, but they all practice sliding scale availability based on seasonal demand.
     
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  14. NYCUA1K

    NYCUA1K Gold Member

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    Good point, but the business model used by HHonors is more akin to the cash model that the airlines use and that is the comparison I was making. Whether we think of it or not points/miles are money or currency, since hard cash must be spent to earn points/miles. Therefore, nothing precludes using points/miles in a business model that was developed for cash transactions. Hilton just did it...
    An even better way to put it. The gradation in the airline seasonal redemption model is coarser, as is Hilton's model although with a finer gradation. The airline's money model appears even finer in gradation because it includes many more factors that can shift costs ever so slightly as to produce a near continuum of costs.
     
  15. Mike Reed

    Mike Reed Gold Member

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    Using the ignore function is easier. The point was... lost in translation somewhere.
     
  16. MyTravels
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    MyTravels Silver Member

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    The new award chart for bookings made after June 15th is out for AXON's (via Mr. Pickles)
    Cat 5 125k=>130k
    Cat 6 125k=>160k
    Cat 7 145k=>190k
    Cat 8 N/A=>220k
    Cat 9 N/A=>260k
    Cat 10 N/A=>300k

    As AXON is not seasonal, it seems you'll definitely want to check the seasonally of your stay as some low-season stays are cheaper at the standard rate than the AXON level.
     
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  17. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    300k = 100 VR at CVS at current earnings rates (6x)
     
  18. MyTravels
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    MyTravels Silver Member

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    ..Waiting for the calculation of the cost of 100 ($500) VR's..
     
  19. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    $395 if you are asking about the fees involved.
     

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