Why Hotel Loyalty Isn’t As Important As It Used To Be

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Do you find yourself staying with the same hotel brand as often as before? Hotel loyalty has its perks, like free room upgrades and earning more bonus points on stays than standard members. But, while most hotels are expanding their global footprint, your brand loyalty may not be as valuable as before.

Hotel Loyalty Programs Not As Valuable

Hotel loyalty programs not being important is a bold statement to make. However, ongoing changes to the travel industry make it easier for travelers to access perks that were once reserved for the most loyal guests. Another leading reason is that hotel points don’t have the same value as before.

Let’s take a closer look at why staying with one loyalty program isn’t as valuable as before.

Automatic Hotel Loyalty Status

In the past, you needed to stay 40 nights, for example, to achieve a mid-tier or upper-tier loyalty status. This is still the case for most programs. However, more travel credit cards offer elevated hotel loyalty status.

Instead of spending hundreds of dollars in hotel reservations over several months to reach a tier, you can pay a small annual fee and enjoy the same status for the entire year.

The best hotel credit cards offer a free anniversary night that can be worth more than the annual fee. Some travelers only keep a hotel credit card for the anniversary night, their upgraded loyalty status, and to prevent their existing points balance from expiring.

These travel credit cards offer an instant loyalty status bump (enrollment required):

• Hilton Honors Card from American Express (Hilton Honors Silver status)
• The Hilton Honors American Express Surpass® Card (Hilton Honors Gold status)
• IHG One Rewards Premier Credit Card (IHG Platinum Elite status)
• Marriott Bonvoy Boundless® Credit Card (Marriott Bonvoy Silver Elite status)
• Marriott Bonvoy Brilliant® American Express® Card (Marriott Bonvoy Gold Elite status)
• The Platinum Card® from American Express (Hilton Honors Gold and Marriott Bonvoy Gold Elite)
• The World of Hyatt Credit Card: (World of Hyatt Discoverist status)

Note that many of the cards listed above also have some of the best limited-time credit card offers available. It’s easy to enjoy the benefits of being a “Gold” or “Platinum” member even if you only stay at that hotel brand one or two nights a year. Many times, those reward nights and other perks will be more valuable than the annual fee.

Related: Best Credit Cards for Hotel Elite Status

Award Nights Cost More

We roll our eyes when we hear our older relatives talk about how a pack of bubble gum or their first car only cost them a small amount versus today’s prices. Well inflation also affects airline miles and hotel points.

Many award travelers dread the perennial award night price changes that hotel loyalty programs do. It’s common for hotels to move certain hotels into a more expensive category. To be fair, several properties were downgraded into a lower category. But in recent years, the prevailing trend is for hotel nights to cost more.

If you typically stay at the same hotel when you visit a repeat destination, you may have experienced these price increases yourself. The award rate may have been 20,000 per night a few years ago but may now cost 30,000 points, for example.

Another trend is having off-peak and peak-season pricing instead of one standard rate for all 365 days of the year. The most recent loyalty program to adopt this policy is the World of Hyatt. Marriott Bonvoy uses a similar pricing tool.

Also, hotel points tend to have a redemption value of less than one cent each. The average credit card point is worth 1 cent or more. It can be easier to save your points for award flights or cash statement credits to get more value.

Credit Card Point Transfers

Select travel credit cards from American Express, Chase, and Capital One let you transfer rewards points directly to partner airlines and hotels. While credit card points are usually most valuable for award flights, you may appreciate booking hotel nights with points.

Chase Ultimate Rewards® points can be transferred at a 1:1 ratio to these hotel loyalty programs:

• IHG Rewards Club
• Marriott Bonvoy
• World of Hyatt

Even if you have basic hotel loyalty status, these point transfers make it easy to book award nights.

Related: Best Chase Credit Cards

Loyalty Programs Merge

Hotel loyalty has also been tested with recent program mergers. IHG recently absorbed Kimpton Hotels.

The highest-profile merger in the hotel space has been Marriott Rewards acquiring Starwood Preferred Guest and creating the Marriott Bonovy loyalty program that offers both Chase and Amex Marriott Bonvoy Credit Cards.

Starwood Preferred Guest was a perennial favorite known for its low award night prices. Now, it can feel like you’re paying “Marriott prices,” which is an initial sticker shock due to different point valuations. For example, 1 Starpoint converted into 3 Bonvoy points.

More Loyalty Tiers

Some hotel loyalty programs have added additional membership tiers.

Another thing to keep in mind is if you will use the exclusive benefits that come with higher loyalty tiers. You are more likely to get complimentary room upgrades at international locations where vacancy rates are higher than in the United States. Also, can you use the premium internet, reservation guarantee, or late checkout benefits?

Are the additional perks worth the extra effort? That answer depends on your travel habits.

Vacation Homes and Boutique Hotels Are Popular

Booking sites like Airbnb, VRBO, and even Hotels.com make it easier to find vacation homes and boutique hotels. For a competitive nightly rate, these chain hotel alternatives can give you better amenities and privacy.

While there are plenty of high-quality hotels with comfy beds and free breakfast, travelers don’t always want a cookie-cutter hotel experience simply to earn hotel points or stay with a familiar brand.

The experience at each hotel brand can also feel interchangeable. Sure, there are some notable differences between staying at a Hampton Inn and a Holiday Inn Express. But to a first-time guest, they are both a mid-tier brand offering free breakfast, on-site workout rooms, and similar sleeping accommodations.

Summary of Hotel Loyalty Programs Importance

Hotel loyalty can still be worth pursuing if you insist on staying with a specific brand or you can benefit from the upscale membership benefits. However, more travelers like the flexibility of staying at the best property regardless of the hotel loyalty portfolio. The travel experience can be more valuable than loyalty awards.

FAQs

Which hotel loyalty program is best?

The best hotel loyalty program can depend on where you travel and the type of property you prefer. As one of the largest hotel portfolios in the world, Marriott Bonvoy has plenty of places to earn points and redeem points. You also have lots of travel brands that can fit your travel needs.

Although smaller, the World of Hyatt loyalty program is another annual favorite. One reason why is that the award nights cost less than competing programs. For instance, many award nights cost 15,000 points or less for a mid-portfolio tier award night. These same properties may cost as much as 30,000 points with others.

Which hotel points are worth the most?

World of Hyatt hotel points tend to have the highest average redemption value on average. Your points can usually be worth up to 2 cents each. This is high as many hotel points are worth between 0.5 and 1.0 cents each with most hotel loyalty programs.

How do hotel loyalty programs work?

Hotel loyalty programs are similar to airline frequent flyer programs. It’s free to join, and there are multiple membership levels. Each higher level offers more benefits, such as complimentary amenities, late checkout, and earning more points per stay.

You reach these higher membership tiers by staying a minimum number of nights or earning a certain amount of hotel points in the calendar year. Once you reach that level, you typically maintain that status for the remaining months of this year and all of next year. You will need to meet the same requirements each year to keep your loyalty status level.

Some hotel loyalty programs offer co-brand credit cards. The cards that charge an annual fee usually offer automatic loyalty status upgrades.

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