Marriott made major updates to its elite status program, including extensions and free night certificates. There have also been major changes to the program, including the elimination of the award charts next spring. While there are many positives to today's announcement, it is difficult to overlook the likely long-term negative impact of eliminating award charts.
Elite status extension
Everyone with Marriott elite status will be happy to hear that your 2021 status, which is based on 2020 activity and 2019 activity that resulted in a 2020 extension, will be extended until February 2023. This is great news for business travelers whose travel has not returned to pre-pandemic levels, which is most likely the majority of them.
This news is a little odd. I will not need to stay at Marriott again this year in order to re-qualify as Titanium status. I planned to redeem my expired free night certificates and book a mattress run to reach 75 nights. This will not be possible as my status will be extended. Also, free night certificates will be extended.
No-hassle extension of your night certificate
Free night certificates that expire between January 3 and June 29 2022 (or certificates from annual cobrand credit cards benefits, annual choice benefit or promotions) will now be redeemable until June 30, 2022. This is great news for all those who have soon-to expire certificates.
This is a win for my 50K certificate, which was previously extended to January 3, 2022. It had also expired in January. As part of my annual Ritz Card benefit, I should also receive a new 50K certificate before January ends. These will be very appealing for 3-night stays.
My wife is in a similar situation. She has a couple 35K free night certificates that expire in January. She will be getting another couple in the next month. In her case, she is at Gold and just 6 nights from Platinum. So she might end up using her certificates to move closer to her status. This could be a great deal as the 35K new certificates she receives next year may make it possible to book back-to-back with my 50K certificates due to the ability to combine points and certificates.
Free Night Award Top-Off. Combine Free Night Award Certificates with up to 15K Points.
Marriott Bonvoy members who have free night certificates are frustrated that they cannot combine their certificate and points to stay in a property priced below the certificate's value. A 35K standard Marriott Category 5 property could be booked with the 35K free annual night certificate that comes along with a few Marriott credit cards. A 35K certificate is useless when Category 5 properties are sold at a peak rate of 40K point per night. This is changing, however.
Marriott announced that members can combine a free night award and up to 15K points from each of their accounts starting in 2022. For example, a 35K credit card benefit can be combined with 15K point to book a property costing 50K points. This is huge news, and could make night certificates even more valuable for many.
Let's take my example. If I found a property that I liked, and it cost 50K points per evening, I could use my 50K night certificates. My wife could then combine her 35K certificates with 15K point per night to book an extended stay. This could be a great idea. It will be less frustrating to use the free night certificates.
They will at least be less frustrating until Marriott removes its award list.
To be removed from the award chart
This morning's announcement was a punch to the gut. Marriott will end its award chart in March 2022. This is being called Flexible Point Redemption Rates by Marriott. It claims that the rates will be more similar to hotel rates and that it will give members more options when searching for the best redemption value.
Although Marriott will spin it as a positive, I don't believe the more flexibility explanation. Take into account:
Marriott says they believe that more price points will give members greater options when searching for the best value. However, Marriott currently offers nine prices for standard rooms: Standard PointSavers Peak PointSavers Peak PointSavers Off peak cash and points Standard cash cash and point Standard cash and point Peak cash and and points. In addition to the many price points available for standard rooms, upgrades are offered at many hotels. These options vary in terms the amount of points required or the amount of cash needed for different room types. PointSavers rates are already available to hotels who want to encourage redemption at lower points rates during off-peak times. It would appear that hotels would not be able to charge higher rates for upgrades than they do now, regardless of whether the hotel is offering them.
Marriott continues to state that they expect redemption rates to remain between 97% and 97% for stays through 2022. It is important to note that rates will be adjusted more closely to hotel rates for stays beyond 2022. What is the translation? Translation?
We asked Marriott if rooms would continue to be priced between 5K and 100K points per person per night after 2022. We were told by Marriott that rates for stays in 2023 will be higher than or lower than the hotel 2022 range. The award chart currently tops at 100K for Category 8 properties. However, this response suggests to me that we will likely not see a cap of 100K on standard awards beyond 2022.
Dynamic pricing means that you can stay in more luxurious hotels at lower prices and/or get free night certificates (and the possibility to add points) during low demand periods. This will be a great opportunity for people who only want to stay in high-end properties and don't care about the redemption value. However, this will severely limit your chances of obtaining a significant amount from free night certificates.
There is still a chance we might see an outsized opportunity for value in a short time. The ability to add points to a free night certificate is expected to be available in the early 2022. If that happens before March 2022, the 35K certificate window will allow for booking peak Category 5 and standard Category 6 rooms with points. To book a peak Category 8, property at peak price, the 85K cert which is part of the Bonvoy Brilliant card's temporary welcome bonus could be used. This could be a great deal for the short-term.
If redemption rates eventually track room rates, it will be interesting to see what the value of free night certificates is. It will be easier to estimate the value of a 35K- or 50K free night certificate. This will be a positive thing as it will be easier for you to calculate the full value of your certificate, but it will be a negative for those who are looking forward to obtaining hugely exorbitant certificates.
It will be fascinating to see how the new pricing model works out. Even though most hotels have a cap of 100K points per night for their rooms, 85K free night certificates could be even more valuable if they are combined with 15K points. It could be very lucrative if those certificates are made a regular part of the Brilliant card.
At the minimum, there will be a window between when the certificate + points option is made available in early 2022 and the abolition of the award chart beginning in March. The new 85K certificates could get you a place at the top of the chart for at most a short time. We don't yet know when that feature will debut so we are not able to give you an exact date. It is also possible that the award charts could be removed before the free night award top-off is activated. We don't know yet.
How about travel packages?
Although interest in Marriotts Travel Packages is down significantly due to the new pricing model, the main positive about travel packages is that they can still be used when properties in the same category are at peak prices. I was interested to see how existing travel packages certificates would be treated after the removal of award charts.
Marriott couldn't provide any further information at this point. When we inquired about Travel Packages, Marriott said that we would be sharing additional information with members as soon as possible. This is because we are getting closer to March 2022.
Bottom line
Marriott has many positives in 2022, including an extension of elite status (through February 2023) and free night certificates (through May 30, 2022). You can also top off a free certificate with up 15K points to book higher-level hotels. The Marriott Bonvoy award charts will soon be eliminated in March 2022. This will likely result in a reduction of opportunities to get Marriott Bonvoy points or free night certificates. Since bookings made prior to March 2022 when the chart is being eliminated will not be honored, it will make sense for you to seize these opportunities for extra value.
