Devalued Hotel Points; Missing Airline Program Data

With award price increases upcoming for members of the Hyatt Gold Passport and Starwood Preferred Guest programs (see "Miles & Points" below for details), it's official: we're witnessing an industry-wide devaluation of hotel points.

The first mover was Hilton, which reclassified most of its properties for award stays in June 2006. Our analysis at the time: The overall effect of the changes amounted to a "one-tier category increase across the Hilton brands. That probably averages out to be a 5,000-point increase on free nights which otherwise would be priced at 20,000 - 25,000 points. So the change amounts to an award price increase of 20% to 25%."

What's behind the changes? Some have alluded to the increase in hotel rates, which indeed have risen steadily even as airline fares have been held in check by low-cost operators. But if higher room rates make awards more valuable, they make earning points more expensive as well.

In fact, the hotels are raising award rates because they can. Demand for their product is strong so there's little pressure on their loyalty programs to maintain their historic generosity quotient in order to drive business. And airline programs, which have always been the established benchmarks for all travel rewards programs, have allowed the value of frequent flyer miles to wane.

Separately, the DOT has finally taken the airlines to task for their failure to give consumers meaningful performance data on their mileage programs. Perhaps the renewed threat of a Passenger Bill of Rights will force the airlines to be more forthcoming. It's long overdue.

Poll: US Air + Delta = ?

Is the proposed merger between US Airways and Delta a good or bad thing for the traveling public? The airline poobahs and investment bankers have no interest in your opinion. But we do!

Weigh in with your take on the tie-up on a new FrequentFlier Poll. (After casting your vote, you'll be presented with the results of the survey to date. There's also a link to view the survey results without voting.)

:: More

FrequentFlier Forum Topics

As always, there's plenty of activity on the FrequentFlier Forum.

In the "Hotel Programs" Forum, QF WP has updated his thread on Starwood bonuses to include a new bonus offer for Pittsburgh Sheraton and Westin hotels.

And in the "Contests & Sweepstakes" Forum, Jennifer shares details and links to a number of new travel-related sweepstakes.

And much more. Questions, answers? Post them to the Forum!

:: More

Aeroplan Has New Hotel Partners

Effective November 28, Aeroplan members can earn miles when staying at Novotel and Sofitel hotels, both Accor hotel brands with a total of 590 properties worldwide.

Normal earning rate will be 250 miles per stay at Novotel and 500 miles at Sofitel hotels. But through March 30, 2007, the rate will be doubled for stays within the U.S. and Canada.

:: More

Delta Relaunches SkyMiles Cruises

SkyMiles members can again earn up to 10,000 miles when booking cruises from Carnival, Celebrity, Disney Cruise Line, Norwegian, Royal Caribbean, and Windstar Cruises at SkyMilesCruises.com.

Between December 1, 2006, and January 31, 2007, all balcony and suite bookings will earn double miles -- up to 20,000 miles.

:: More

DOT Asks: "Where's the Data?"

In a 55-page report issued in late November, the Department of Transportation's Office of Inspector General graded the airlines on their compliance with their own Customer Commitment statements.

Entitled "Follow-up Review: Performance of U.S. Airlines in Implementing Selected Provisions of the Airline Customer Service Commitment," the report finds that the airlines have failed to deliver on their own promises in a number of key areas, including their commitment to provide consumers with frequent flyer program performance data that could be used to make meaningful comparisons among competing programs.

The DOT's recommendation: "[T]he airlines should make available information that allows consumers to determine which frequent flyer program would provide the greatest benefit based on availability of awards at the standard level, awards requiring the least number of points, or seat availability to top markets... This information should include the ratio of the number of seats flown by passengers traveling on frequent flyer rewards to the overall number of seats available and the total number and percentage of redemptions at both standard and premium levels."

We've been calling for complete disclosure at least since March 2000, so it's gratifying to see the DOT onboard. Better late than never.

We'll have a more in-depth look at this critical issue in the weeks to come.

:: More

More Northwest Miles at the Mall

Through December 31, WorldPerks members can earn 600 bonus miles for every $200 spent at the WorldPerks Mall. In addition, many participating retailers are offering double points for purchases made by the end of the year.

Registration is required.

:: More

Priority Club Bonus for December Bookings

Priority Club members will earn 1,000 bonus points for every qualifying stay booked online in December 2006 and completed during January 2007. Stays at InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites or Candlewood Suites are eligible.

Registration is required.

:: More

Starwood Will Raise Award Rates

Rumors have been swirling around forthcoming changes to the Starwood award chart. Here's what we've been able to confirm with Robin Korman who heads up Starwood's program.

In February of 2007, Starwood will add a new award tier, Category 7, to its award chart, with free nights priced at 30,000 points in low season and 35,000 in high season. That's a 10,000-point increase over current Category 6 award prices.

According to Korman, the change is "due to the increasing room rates in many markets (coupled with our no blackout dates policy) and the addition of hotels which have unique room types (oversized rooms, suite only configurations, etc)."

The list of Category 7 hotels (subject to change) includes nine high-end properties.

Also from Korman: "Members can book at current Starpoint rates until February. In addition, we have added the capability to book redemptions 18 months out to our websites for additional convenience."

:: More

Triple Starwood Points at Asia-Pacific Sheratons

Between December 1, 2006, and February 28, 2007, Starwood Preferred Guest members will earn triple points for stays at participating Sheraton hotels in the following countries: Australia, Bangladesh, Brunei, China, Fiji, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Registration is required.

:: More

United Doubles the Miles for Chicago Flights

Through January 31, 2007, Mileage Plus members will earn double miles for United, United Express and Ted flights between Chicago (ORD) and Albany, Fargo, Las Vegas, Memphis, Orange County, and San Francisco.

Registration is required.

:: More

Deal Alert from SmarterTravel.com

1) Buy One, Get One Free from Spirit

Spirit is offering a "buy one, get one free" ticket promotion. Eligible departure cities are Atlanta, Atlantic City, Chicago, Detroit, Ft. Lauderdale, Ft. Myers, Las Vegas, Los Angeles, Myrtle Beach, New York, Orlando, Providence, Tampa, and Washington. You can also fly to several cities in Mexico and the Caribbean. To take advantage of the offer, you must enroll in Spirit's frequent flyer program and be logged into your account when you book.

Tickets must be booked by December 7, 2006, at 11:59 p.m. ET for travel between January 10 and March 28, 2007.

:: More

2) Delta's U.S. and Caribbean fares from $118

Delta has a sale on domestic and Caribbean flights for travel through January. Prices start at $118 roundtrip, and destinations include Boston, Chicago, Miami, and San Juan.

Travel is valid through January 31, 2007. Book tickets at least seven days in advance, and by December 15, 2006. A one-night minimum stay is required.

:: More

Win 1 Million AAdvantage Miles

Enter American's "Scratch, Match & Win" sweepstakes by December 31 for a chance to win the grand prize of 1 million AAdvantage miles. There are also two first prizes of 100,000 miles each; three second prizes of 50,000 miles each; fifty third prizes of 10,000 miles each; 300 fourth prizes of 5,000 miles each; and 2,500 fifth prizes of 1,000 miles each. That's a total of 5 million miles.

:: More

[Visit http://frequentflier.com/sweeps.htm for more travel sweepstakes.]

Feedback from the Frontlines of Travel

"This past Sept 2006, I booked a trip from NY to Las Vegas and was disappointed with the airlines (American).

"When I on my way home from Vegas, I had to change planes in Chicago's O'Hare Airport and had a horrifying experience there. I was trying to go the gate to see what was happening with the departure to NY, 2 hr delay due to inclement weather. At the gate they set it up too close together with a flight going to Brussels and I was stopped by U.S Customs. It took about 20 minutes to finally realize that I was going to NY. I showed them everything I had and still got harassed by them. American Airlines in Chicago should better separated domestic and international passengers. This experience for now has me turned off to flying." [Joseph B.]

Until next week...