- News & Analysis
- Strategies & Tactics
February 11, 2011 – The outlook for frequent flyer miles and points in 2011? It depends.
While travel overall is rebounding nicely from the recession-dampened demand of the past three years, it isn’t doing so uniformly.
The airlines, for example, are now routinely filling their planes to 80 percent of capacity, even during off-peak periods.
More importantly, they’re flying profitably. According to the Air Transport Association, an airline trade group, the largest U.S. airlines posted combined profits of $2.3 billion for 2010, and $4 billion when one-time costs associated with mergers and the like aren’t counted. That compares to a loss of $26 billion in 2008 and 2009.
With capacity aligned with demand, and travelers willing to pay above-breakeven prices, the airlines have little incentive to deploy generous frequent flyer promotions to boost business.
The picture is less rosy for the hotel industry, but more rewarding for members of their frequent-stay programs.
STR, an industry research company, reports that hotel occupancy rates for 2010 were up 5.7 percent, but even with that increase reached only 57.6 percent.
And average daily room rates actually declined very slightly, to $98.08.
Accordingly—and proving yet again that industry’s pain is consumers’ gain—most of the largest hotel groups are offering bonus points or frequent flyer miles or free nights for stays during the next few months.
Here’s a summary:
Between February 6 and April 11, Best Western Rewards members can earn up to 1,000 bonus American AAdvantage miles for every qualifying stay, as follows:
Separately, and during the same period, Best Western is offering one free night after three qualifying stays.
Through March 2, Choice Privileges members can earn triple points, double points, or 500 bonus points for stays at Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, MainStay Suites, Cambria Suites, Suburban Extended Stay, Ascend Collection, EconoLodge, and Rodeway Inn hotels.
Through March 31, Hilton HHonors members who opt to earn fixed mileage for their stays can earn up to 2,000 Delta miles for qualifying stays of one or more nights at Hilton family hotels, as follows:
The above figures include both the base and bonus miles.
Between February 1 and April 30, Priority Club Rewards members can earn 3,000 bonus points for every third qualifying night, up to a maximum of 30,000 points, at InterContinental, Hotel Indigo, Crowne Plaza, Holiday Inn, Holiday Inn Express, Staybridge Suites, Candlewood Suites hotels.
Between February 1 and April 30, Marriott Rewards members can choose to earn a free night after two paid stays, up to two free nights (the MegaBonus offer), or triple airline miles for the second and subsequent stays (the MegaMiles offer).
Through April 15, Starwood Preferred Guest members can earn double points for all nights, plus an additional 500 points for Thursday, Friday, Saturday, and Sunday nights, at more than 930 participating Starwood family hotels (Sheraton, Four Points, St. Regis, Luxury Collection, Le Meridien, W, Westin, aloft, element).
Through April 30, members of the Wyndham Rewards program can earn up to quadruple points for stays at Baymont Inn & Suites, Days Inn, Howard Johnson, Knights Inn, Microtel Inn & Suites, Ramada, Super 8, Travelodge, Wingate, and Wyndham hotels, as follows:
The current offers are a continuation of what has been the longest period of sustained promotional activity in the hotel industry’s history. No one expects such marketing largesse to continue indefinitely. The question is: How much longer?
STR’s CEO, Mark Lomanno, is bullish on the industry’s near-term prospects. “While it may be the second half of 2011 before we begin to see rapidly accelerating room rates, by the time we get to 2012 we now expect room rate growth to rival the boom years of 2006 and 2007.”
If that’s true, we could be witnessing the beginning of the end of an exceptionally lucrative era for deal-seeking travelers.
Because when the hotels are no longer down and out, their customers will pay more and reap fewer rewards for their stays.