Hilton Honors Increases Points Costs At Top Hotels

Some members will not be happy about the fact that award costs have been raised at some properties.

More Hilton Honors hotels now cost 100K+ points per night

For several years now, the award chart has not been published. The reality is that the most expensive award rates at a particular hotel have been the same for a long time. For example:

• The Waldorf Astoria Maldives was the only property that cost up to 150K points per night, while the Waldorf Astoria Los Cabos was the only property that cost up to 120K points per night
• Other luxury Hilton Honors properties cost up to 95K points per night
• In situations where you saw pricing beyond the above amounts, that means there aren’t standard rooms available

It would appear that overnight the award costs have gone up. At the minimum.

• The Conrad Maldives now costs up to 120K points per night, rather than up to 95K points per night
• The Waldorf Astoria Grand Wailea now costs up to 110K points per night, rather than up to 95K points per night

It is possible that other properties went up in price as well. I wouldn't expect an advance notice of these changes when the award costs aren't being published.

Why we’re seeing hotel award price devaluations

We're seeing some changes to hotel loyalty programs.

By comparison this is not as bad, but Hilton is increasing award costs at some more expensive properties.

Understanding how the economics of hotel loyalty programs work is worth the effort. Major global hotel loyalty programs have to compensate individual hotels for each redemption because most hotels are independently owned.

• When the hotel isn’t full, the loyalty program compensates the hotel at some reimbursement rate that’s slightly above the marginal cost of servicing a room, etc.
• When the hotel is full (think 90-95%+ occupancy), the loyalty program compensates the hotel close to the average daily rate, in recognition of the fact that the room may have otherwise been sold

I think the high end devaluations reflect the huge demand for luxury travel. Room rates at many luxury properties are through the roof, and on top of that are packed.

Bottom line

Some luxury hotels have increased award costs. Only two hotels charged more than 100K points per night for a standard room before this. There are at least two more hotels in that range.

The increases in points requirements aren't good for members, but they're not that surprising.

What do you think about the increase in award costs at some properties?

The tip of the hat was given to Abidjan.