Sometimes I want luxury, and sometimes I want quantity.
Last week I talked about the Three Best Credit Cards for Free Nights in Luxury Hotels.
But what about going to the other end of the award chart? A lot of times when I am traveling I just need a pillow and a roof, since I plan to be out exploring the city all day. What credit card sign up would net me the most free hotel nights? (20 in all!)
Posted in Club Carlson, Hilton, Hyatt, Marriott, Priority Club, SPG
Tagged Club Carlson, Hilton, Hyatt, Marriott, Priority Club, Starwood
For me, first class flights would be out of reach without miles. I can’t spend $10,000 for a first class flight on an airline like Emirates.
Luckily I don’t need to because I have plenty of miles, and I could fly economy class in a pinch.
Fancy hotels are similar. I can’t pay $1,000 a night for a hotel like the Park Hyatt Sydney.
And luckily I don’t ever need to stay in fancy hotels. When I travel, all I need is a roof and a pillow. But for those special occasions when I want to indulge in absolute luxury, I can by opening a single credit card.
What are the three best credit cards for luxury hotel experiences?
A few weeks ago, Rookie Alli applied for her very first cards. Her cards were all instantly approved except the Citi® Hilton HHonors™ Reserve Card.
She really wanted the Citi® Hilton HHonors™ Reserve Card because it comes with two free weekend nights at almost any Hilton worldwide. With the recent major devaluation to the Hilton award chart, Hilton points are worth way less, but these two free nights are still two free nights.
Application Link: Citi® Hilton HHonors™ Reserve Card
When her application for the Citi® Hilton HHonors™ Reserve Card was not immediately approved, she did what I always suggest. She called Citi’s reconsideration line immediately. These are the reconsideration line numbers I use.
American Express (866) 314-0237
Barclay’s (866) 408-4064
Chase (PERSONAL) (888) 245-0625
Chase (BUSINESS) (800) 453-9719
Citi (800) 695-5171
US Bank (800) 947-1444
I’ve made several reconsideration calls, and this was Rookie Alli’s third. In our experience, reconsideration calls are painless and a bit of a misnomer. Most of our reconsideration calls happen not when the application is denied, simply when it’s listed as pending.
And most of the time, the agent only asks questions we’ve already answered on the application.
The one thing I always do to prepare for a reconsideration call is to rehearse an answer to the question of why I want the card I’m calling about. The best answers reference the co-branded partner (ie Hilton on the Citi® Hilton HHonors™ Reserve Card), some benefit of card membership besides the sign up bonus, or both.
For this card, Rookie Alli’s answer was going to be: “I want the Citi® Hilton HHonors™ Reserve Card because I travel a lot and am loyal to Hilton, so I want to have a card that has a high earning potential of Hilton points.”
It’s not difficult to formulate a good answer.
But as with many “reconsideration” calls, there were no tough questions and no reconsideration–just a short hold and an approval. Take a look.
Hopefully this video clears up any apprehension you might have about calling the reconsideration lines. Not all calls are this painless, but most are.
Recap
If your credit card application is not immediately approved:
Posted in Best Of, Citi, Hilton, Rookie Alli, Video
Tagged Best Of, Citi Hilton Reserve, YouTube
An example of the number one question I’ve gotten in the last few weeks:
Scott,
Should I use the free night certificates from my Hilton Reserve card by 3/28? After Hilton’s major devaluation (don’t get me started…), there will be 10 categories after 3/28 and the free nights are good at category 1-7 according to the terms.
Sam
Sam is asking about the two free weekend nights you earn by spending $2,500 within four months on the Citi® Hilton HHonors™ Reserve Card credit card. What makes the nights so valuable is that they are valid at almost every Hilton in the world including insanely fancy and expensive properties like the Conrad Koh Samui, which is going for $633+ per night in June.
18,920 Baht = $633
The Conrad Koh Samui is a category 7 hotel currently, the top category, which costs 50,000 points a night. So two free nights there is currently like getting 100,000 HHonors points worth of value from one credit card.
Starting March 28, the Conrad Koh Samui will be a category 10 hotel, the new top category, according to the new hotel categories list. Category 10 hotels will cost 70,000 to 95,000 points per night based on the season.
So Hilton points are seeing a major devaluation, especially at the top end. Two nights at the best Hiltons in the world at peak times was 100,000 points; now it will be 190,000 points.
But is the Citi® Hilton HHonors™ Reserve Card seeing the same type of devaluation? That’s what Sam wants to know. The card’s terms and conditions say that the free nights are good for Friday, Saturday, and Sunday night stays at category 1-7 properties.
If these terms remained unchanged, it would be a huge devaluation. No longer would the free nights be good at the top tier properties like the $633+ Conrad Koh Samui. Instead they would only be good up to the new tier 7, which surely includes nice hotels, but not the kind that make you drool.
According to Mommy Points, the free nights from the Citi® Hilton HHonors™ Reserve Card will still be good at all the same hotels they are good at now.
Translation: the award chart devaluation is not a Citi® Hilton HHonors™ Reserve Card devaluation. You will now be able to use the free nights at the new Categories 1-10.
I’m working to independently verify this, but it is fantastic news for all of us–perhaps most of all Rookie Alli, who just got the Citi® Hilton HHonors™ Reserve Card. I’m planning to get the card soon, and I want to make sure I can get two nights at a hotel that I could never afford (or even if I could, I wouldn’t stay at because I’d feel guilty about the price.)
Two nights of the base room.
In recent weeks the Citi® Hilton HHonors™ Reserve Card has shot up the list of best Citi card offers. Unfortunately this isn’t because the offer has improved–just because all the other Citi offers have gotten worse.
Namely the two-browser trick that allowed us to get 100k American Airlines miles for one credit pull is dead (or very near.) And the other Citi cards that offer Hilton points are worth less as those points are worth less under the new award chart.
Here are the bullet points on the Citi® Hilton HHonors™ Reserve Card.
Application Link: Citi® Hilton HHonors™ Reserve Card
• Earn 2 weekend night certificates good at select hotels and resorts within the Hilton HHonors portfolio after $2,500 in eligible purchases within 4 months of account opening*
• Earn 10 HHonors Bonus Points per $1 spent on hotel stays within the Hilton HHonors portfolio*
• Earn 5 HHonors Bonus Points per $1 spent on airline and car rental purchases*
• Earn 3 HHonors Bonus Points per $1 spent on all other eligible purchases*
• Enjoy the benefits of HHonors Gold status as long as you are a cardmember*
• No foreign transaction fees on purchases*
• Travel with ease and enjoy global acceptance with your Citi chip credit card
• Earn an anniversary bonus of 1 weekend night certificate at select hotels and resorts within the Hilton HHonors portfolio each cardmembership year with qualifying purchases*
The good news is that you don’t have to burn your Hilton award nights in the next month for maximum value. The bad news is that you do have to burn your Hilton points in the next month for maximum value.
Previously: Rookie Alli’s First Cards: Picking the Cards
Execution
My first cards couldn’t have been easier! While I did hit a couple of snags, none were very serious, and I am treating them as learning experiences. I applied for all five card in one day and was able to fit in the applications and any needed calls to the credit card companies around the other things I had to do that day: a kickball game and some flip cup.
I started with the Frontier card at 10:11 AM and was instantly approved online.
I even got to pick which Frontier mascot I wanted on my card. I went with Foxy Brown.
Excited after this positive start, I moved on to the United MileagePlus Explorer card. Again, instant approval! I’d been at this for 20 minutes and was two-for-two on these applications.
…Except that I had clicked the Submit button without adding a second cardholder to the account. That click was a 5,000 mile rookie mistake.
Chase lets you add an authorized user to the card and earn 5,000 extra miles upon first purchase.
On the application, I just skipped over the section because it wasn’t very noticeable.
I might be able to salvage those points, though. I’ll send a secure message to Chase and see if they will let me add a user for 5,000 miles. I’ll report back.
Disappointed about the United blunder, I moved on to the Discover it™. This is where I encountered my second snag of the day. I filled out my personal information, checked the Terms and Conditions box, and was redirected back to the original application page. Not letting this computer glitch deter me from my mission, I again filled out my info, checked the box, and… nothing.
A quick phone call to Discover informed me that they were having system wide technical issues, their staff was slammed, and could I please call back later? I called again that evening at 8:00 PM, concerned with the fact that I may have submitted two applications or maybe none at all. The agent told me that I had indeed submitted two, and that the first was instantly approved but the second was pending further review. I asked her to shut down the second application, which she did. Success!
The fourth card I applied for was the Mercedes-Benz Platinum card. Once again, I was instantly approved and received an email telling me I’d have my card in 2-3 days.
I applied on Sunday, and received it on Tuesday. Considering it was a holiday weekend, a 48 hour turnaround was quite impressive! I’m already working on the Global Entry application.
The final application was for the Citi® Hilton HHonors™ Reserve Card card. This was the only card that I was not immediately approved for.
That was fine. I learned from applying for the Citi American Airlines cards in November about reconsideration calls since I was not immediately approved for the Citi American Airlines American Express. In my experience, a reconsideration call is no big deal, but I like to prep what I am going to say before picking up the phone.
I know it’s important to convey enthusiasm for the card’s partner (Hilton) and all the card’s benefits except the sign up bonus, so that the bank will think you are a profitable customer.
At a minimum, I was expecting some questions. But after the rep confirmed my identity, he put me on hold, came back, and said I had been approved for the card. Here is a video of the call. Most of the five minute call was spent goofing off on hold.
Recap
I applied, and was approved, for five rewards cards.
My haul? After a combined minimum spend of $5,250, I will have 35,000 Frontier miles, 35,000 United miles, 50,000 Membership Rewards, free Global Entry, $400 in airline-fee credits or gift cards, two free weekend nights at almost any Hilton across the globe, free lounge access at hundreds of airports, access to huge cashback opportunities from Discover, free breakfast and internet at Hiltons, and a credit card with a fox on it. 
Posted in American Express, Barclay's, Citi, Discover, Frontier, Hilton, Membership Rewards, United
Tagged American Express, Barclay's, Citi, Discover
Introducing Rookie Alli: Rookie Alli will be MileValue’s resident expert-rookie. She’ll write posts about getting started with miles and points from a beginner’s perspective. From the first cards and the first award booking to first class (hopefully), folks of all levels can learn from her triumphs and rookie mistakes.
Rookie Alli, scaring dogs since the ’80s
I just signed up for five cards and got 110,000 miles and points, two free hotel nights, $500 worth of statement credits, access to the best cash back mall, and a number of other perks.
Planning
Being new to the miles game, I currently only have two credit cards: the Citi AAdvantage Visa and American Express cards, which I applied for using the now-dead, two-browser trick in November. I met my minimum spends and collected my 105,000 American miles, and now I’m hooked.
Should I use the AA miles to go back to Hawaii?
Scott always says to wait 91 days between credit card applications, then apply for any cards you want the same day to maximize your approvals and rewards. After my 91 days passed, I was eager to see what my my next cards could be.
There were a couple of personal factors I kept in mind when deciding which cards I was going to include in my applications.
1. I wanted to keep my minimum spends relatively low, since I will be out of the country during part of the minimum spending period in countries where it is tough to use credit cards.
2. I have not hopped on the Bluebird/Vanilla train just yet, but I am comfortable using Amazon Payments to help meet minimum spends.
This goes along with my biggest piece of advice to fellow rookies: only dip your toes into the miles world to the extent you are comfortable. For instance, at first I was only comfortable getting two credit cards at a time. When I saw I could handle that, I decided I could handle more cards this time.
When I heard about Amazon Payments, I tested it out one month by sending $990 to a friend. I was comfortable with the results, so I continued using the service each month.
I signed up for a Bluebird card, but I have not activated it yet because I am still not comfortable with the idea.
3. I only wanted to apply for cards with an annual fee if I felt the card’s perks justified that fee.
I got into this game for free travel, so I don’t want to pay annual fees. But I am willing to pay an annual fee if I know I am getting way more in return than the fee costs.
4. I’m not ready for any business cards. I do probably have some small money-making activities that would qualify as businesses, but I’m not comfortable applying for business cards yet.
I know that most people can get business cards easily from reading How to be Approved for a Business Card, and that I am missing out on some of the best sign up bonuses, but business cards aren’t for me yet.
Using MileValue’s Best Offers and Best Practices, I ultimately decided to apply for five cards:
1. Frontier Airlines World MasterCard
This card was a no-brainer for me: miles after the first purchase, very low minimum spend to unlock the rest of the miles, and I’ve had really good experiences flying Frontier to and from Denver in college.
2. Chase United MileagePlus Explorer Visa
I wanted to earn some United miles because I know how valuable they can be, especially to Europe.
I know the Chase Sapphire Preferred offers a superior bonus of 40,000 Ultimate Rewards after spending $3,000 in three months, but I wanted to keep my minimum spend low.
3. Discover it™
This might seem like a weird card to get because it has no sign up bonus. I got it because the card was an opportunity for me to earn a lot of cash back. This quarter’s 5% back category is restaurants and movies. I know I can maximize that category. Next quarter is home improvement stores, where I also spend a lot. Yes, really
The other big thing is this card will allow me to access the ShopDiscover portal, which is one of the best portals out there. The portal offers 5-20% cash back at a lot of places I shop and routinely offers better deals than miles-earning portals. For instance, no one comes close to offering 5% cash back at Apple.
courtesy evreward.com
4. Mercedes-Benz American Express Platinum
This was the only card I was hesitant to apply for. When I first saw that $475 annual fee (!) I immediately disregarded it as an option to include in my applications. I thought no perks could justify that fee, especially since the fee would appear on my first statement–before I could enjoy anything I was paying for.
However, when I thought a little deeper about it, I realized that this card actually offers a lot of good bonuses. Bill covered how those airline-fee credits can be used to buy gift cards which can then be used to purchase flights, the Global Entry voucher will save me hours of waiting-in-customs time this year (my sanity must be worth $475, right?), and I know I can easily find a use for 50,000 Membership Awards.
Since the airline-fee credits are a calendar year bonus, I can get 2 x $200 gift cards plus $100 for Global Entry, meaning $500 in statement credits.
I guess I can give it a year-long trial run. I’ll get $400 worth of flights, $100 worth of Global Entry, free lounge access, and nearly a $1,000 worth of points for my $475 fee.
5. Citi® Hilton HHonors™ Reserve Card
• Earn 2 weekend night certificates good at select hotels and resorts within the Hilton HHonors portfolio after $2,500 in eligible purchases within 4 months of account opening*
• Earn 10 HHonors Bonus Points per $1 spent on hotel stays within the Hilton HHonors portfolio*
• Earn 5 HHonors Bonus Points per $1 spent on airline and car rental purchases*
• Earn 3 HHonors Bonus Points per $1 spent on all other eligible purchases*
• Enjoy the benefits of HHonors Gold status as long as you are a cardmember*
• No foreign transaction fees on purchases*
• Travel with ease and enjoy global acceptance with your Citi chip credit card
• Earn an anniversary bonus of 1 weekend night certificate at select hotels and resorts within the Hilton HHonors portfolio each cardmembership year with qualifying purchases*
This one was tough because it had a large minimum spend and an annual fee. I went with it, though because I want two free nights at a super fancy hotel that I could otherwise never afford.
I’m channeling my inner Hepburn by picturing myself drinking champagne and eating macaroons in Paris
Recap
I chose five cards to apply for:
Concluded in Rookie Alli’s First Cards: Execution
Posted in American Express, Barclay's, Citi, Discover, Frontier, Hilton, Membership Rewards, United
According to this thread on FlyerTalk, Citi has announced that ThankYou Points earned from its own ThankYou Point credit cards can now be transferred to Hilton HHonors points.
There some huge pros to this announcement but also some really troubling concerns that need further clarification. Read on for my analysis.
What is the transfer ratio of ThankYouPoints to Hilton HHonors points?
According to the Hilton website, ThankYou Points (TYP) can be transferred to Hilton HHonors at a ratio of 1:1.5. The minimum number of TYP that can be transferred is 1,000. They also must be transferred in increments of 1,000.
Is this transfer ratio better or worse than other possible HHonors transfer partners?
The 1:1.5 ratio falls in line with the American Express Membership Rewards transfer ratio. Take note that until January 31, American Express is actually offering a better 1:2 transfer ratio. For more details on that, check out my post Hilton HHonors-33% Bonus on Membership Rewards Transfers.
Starwood Preferred Guest points transfer to HHonors at a 1:2.5 ratio, but it takes some legwork. In general, this is a really poor way to spend your SPG points. However, if you are desperate for HHonors points and close to topping off an aspirational award, it might make sense.
To pull this off, you will need to transfer your SPG points to either Virgin Atlantic or Hawaiian Airlines.
Starwood Points transfer to Virgin Atlantic or Hawaiian Airlines at a ratio of 1:1.25 when you transfer in increments of 20,000. For example, converting 20k SPG points will net you 25k Virgin Atlantic Flying Club miles. Virgin Atlantic miles then transfer to HHonors at a ratio of 1:2. For a step by step, check out Scott’s post Transferring Virgin Atlantic Miles to Hilton HHonors Points and Transferring Hawaiian Miles to Hilton.
In a basic example, transfer 20k SPG points to Virgin Atlantic to net 25k Flying Club miles. 25k Flying Club miles then convert to 50k HHonors points.
If the ratio isn’t that great, why is this announcement a big deal?
I’m excited about the news from Citi merely on the hope they add more transfer partners. Having just one transfer partner isn’t very exciting. It won’t tempt me to apply for the cards outright. However, if Citi can add more potential partners, especially airlines, then the value of a ThankYou Point could be mentioned in the same breath as American Express Membership Rewards and Chase Ultimate Rewards Points, two flexible point programs with many great airline and hotel transfer options.
As you know, we have a great Award Booking Service here at MileValue and love tackling all types of difficult and complex awards. When clients contact us, having flexible points like Chase or American Express gives us options. It opens up routes that wouldn’t be otherwise possible. It makes bookings much easier.
If Citi becomes the third flexible bank point currency, then more potential award redemptions are accessible to frequent flyers.
Wasn’t Citi rumored to have added some airline transfer partners last year?
Actually, yes. In March of 2012, FlyerTalk was abuzz about Citi potentially adding British Airways and Singapore Air. The supposed partnership was to take place in April but never materialized. The addition of Hilton to Citi’s portfolio hopefully rekindles some of those rumors. To read about that big letdown, check out the FlyerTalk thread here.
Do all Citi cards that earn ThankYou Points qualify for transfers?
No. According to Citi’s own terms and conditions listed below, you must have a Citi Premier or Prestige card to be eligible for transfers. Other cards that earn TYP such as the Preferred, Forward, and Standard cards, do not qualify.
Anything else worry you about the terms and conditions?
Yes! There is some real concern about T&C #3 on the list above. It appears that TYP earned through sign up bonuses are not eligible for transfers to Hilton. I can’t overstate how much of a dealbreaker this is. But I also am not sure that it’s true.
The vast majority of my Membership Rewards balance was earned through the sign up bonus. I’m sure Scott can say the same about his Ink Plus and Ink Bold cards. We simply don’t generate enough spend to accumulate the points for premium cabin redemptions. Sign up bonuses are the clear-cut best method in quickly attaining premium cabin awards.
According to this thread on FlyerTalk, the Citi Premier card was offering a 50,000 TYP sign up bonus as recently as last year. The card now as a standard 25k sign up bonus.
The possible sign up bonus exclusion from Citi TYP transfers is a massive negative for the program. The data points are still pretty scarce on FlyerTalk, so feel free to comment if the TYP earned through your sign up bonuses are eligible for transfer to Hilton.
If I can’t transfer ThankYou Points, what are they good for?
TYP can be redeemed for a variety of gift cards at a rate of $0.01/point. Citi Premier and Prestige cardholders can also redeem them for airfare at a rate of $0.0133/point. Using TYP for airline tickets gives you much more value and allows you to earn redeemable and elite qualifying miles on the trips. Citi is essentially purchasing the ticket for you.
Recap
Citi has added Hilton HHonors as a transfer partner to a select few of its ThankYou Point earning cards. The transfer ratio is not a good deal, in my opinion.
The potential for Citi to add additional transfer partners is extremely exciting. They were rumored to have an agreement with British Airways and Singapore Air, but that never materialized last year. If they were to add more hotel and airline partners, Citi could give American Express and Chase a run for their money when it comes to “Best Flexible Bank Point.”
I’m still very concerned about the language in the terms and conditions excluding sign up bonus points from transfers. If that turns out to be true, the strategic value of TYP diminishes greatly.
According to this thread on FlyerTalk, Hilton is offering up to 50% off the Best Available Rate at participating hotels and resorts in the Hilton portfolio. The maximum potential discount at each brand is listed below:
Save 50% at these participating hotels and resorts:
-Waldorf Astoria, Conrad, Hilton, DoubleTree by Hilton, Embassy Suites, and Hilton Grand Vacations
Save 30% at these participating hotels and resorts:
- Hilton Garden Inn, Hampton, Homewood Suites, and Home2 Suites
The offer page can be found here. The promotional details are listed below:
When do I have to book by?
Stays must be booked by January 7th. You must also stay between December 14th and January 7th to be eligible for this “Friends & Family” discount rate.
Will I be asked who I know at Hilton when I check in using this rate? After all, the landing page says “Exclusive Friends & Family Sale”.
No, despite the misleading name, this is not a corporate rate or something that only Hilton employees can take advantage of. The promotional name simply implies that rates are deeply discounted off the Best Available Rate. They want you to feel like you are getting a great deal when booking.
A lot of times these bargain rates are can’t be cancelled and are nonrefundable. Is that the case with this Friends & Family rate?
Surprisingly no. I have a few upcoming hotel stays in Baltimore and Atlanta for Christmas, so I wanted to check out the flexibility of this rate. I can’t stand fully prepaid rates. Plans (and hotel rates, for that matter) can change at a moment’s notice, so I hate locking myself into a price only to see it drop later. It warmed my heart to see the cancellation details below when I clicked on the Friends & Family rate:
Any blackout dates I need to be aware of?
Yes. The terms and conditions note that this Friends & Family rate isn’t available on December 31st. Hilton has excluded New Year’s Eve from the promotion.
Does this rate earn points and elite credit?
There is nowhere in the terms and conditions that states otherwise. The Friends & Family rate appears to earn HHonors points and elite status credit as normal.
Will you be taking advantage of this rate?
I actually will. As I mentioned above, I have a few stays in Atlanta and Baltimore that I need to book quickly for later in the month. This Hilton promotion came around at the perfect time. Researching some December weekend dates in Atlanta got me these nice results:
To make sure the $49 rate at the Hilton Atlanta represented actual savings off the Best Available Rate, I clicked Book a room and then checked the boxes on the left side of the screen to display the Best Available rate, the Advance Purchase rate, and the Friends & Family rate. I was pleased with the results:
That’s a cool $50 savings off the Best Available rate and $30 off the Advance Purchase rate.
I see the Any Weekend Anywhere rate is also $79. Did you write about this rate before?
I actually did in this post, Hilton HHonors Promotion: Double Stay Credit. The Any Weekend Anywhere rate could be useful for some as it rewards double stay credit for each stay of two nights or more. If you are struggling to requalify for Hilton Gold or Diamond status, the double stay perk might put you over the top.
Unfortunately, my stays in Atlanta and Baltimore are one night stays. As mentioned above, I really despise prepaid rates in case plans change suddenly. The Friends & Family rate is cheaper than the Any Weekend Anywhere price anyways. By my count, that’s three big strikes! I will be booking the Friends & Family rate without hesitation.
Atlanta and Baltimore…that’s pretty boring. Are there any other places that stand out to you?
I did some checking and found great rates at the Conrad Miami for upcoming weekend stays. The best part of the Friends & Family rate is that it applies to upgraded rooms. A suite at the Conrad was actually pretty reasonable:
I also tripped over some good prices in San Francisco close to New Year’s.
Sadly, cursory checks of Honolulu and New York yielded less encouraging results. I couldn’t find any availability in Honolulu and New York appeared to be fully booked on the weekends. I did find a pretty good weekday price in Manhattan (at the Hilton New York), though:
I don’t have any new stays planned, but some of my previously booked hotel nights would be a lot cheaper with this Hilton rate. Can I cancel and rebook?
If you booked a flexible reservation with Hilton (or any other hotel chain) then go ahead and cancel and rebook with the Friends & Family rate if it saves you money. Just remember to verify that you won’t be penalized for cancelling your old reservation!
Recap
I’m not one to get too excited about hotel promotions, but this Hilton rate has usable value. There are concrete examples showing 50% discounts on the Best Available rate. This newly announced Friends & Family rate is also fully cancellable (provided you give the hotel enough notice.) Stays booked under this rate also appear to earn normal points and elite credit. There is a lot to like here.
Check your previously booked rooms and see if the Friends & Family rate can save you money. If you were looking for a last minute December vacation, this promo could be a great incentive.
Hilton HHonors-33% Bonus on Membership Rewards Transfers
Per this thread on FlyerTalk, Hilton is offering a 33% bonus when transferring Membership Rewards into Hilton HHonors points. This offer is good for transfers through January 31st. Transfers must be made in increments of 1,000 Membership Rewards points. 1,000 Membership Rewards will convert to 2,000 HHonors points with this promotion.
The standard transfer ratio for Membership Rewards into HHonors points is 1:1.5.
Is this a good deal?
Absolutely not! Though our hotel valuations are still being discussed, the Mile Value Leaderboard values Membership Rewards at 1.79 cents. Even being extremely generous to Hilton, valuing HHonors points at 0.8 cents means this is still a poor play and loss of value.
Membership Rewards should be saved for transfers to frequent flyer programs such as British Airways Avios and Delta Skymiles. For some great redemptions using both airline programs, see Scott’s posts below:
How Much are Avios Worth? The Value of British Airways Avios
Delta Still Not Charging Surcharges on Virgin Australia Awards
If Avios are such a great transfer partner, is American Express running any transfer specials with them?
As a matter of fact, they are. Scott wrote up a quick summary of the Avios 30% transfer bonus through January 14th. For details, see Scott’s post, Avios 30% Transfer Bonus from Membership Rewards.
I really need HHonors points badly and have a stash of Membership Rewards. Is there any way to get an even better transfer ratio than 1:2?
Through December 29th, there is! Virgin America is currently offering a 35% transfer bonus for Membership Rewards. As I wrote in the AMEX/Virgin Atlantic Transfer Bonus article, you can essentially earn 2.7 HHonors points by transferring your AMEX points to Virgin Atlantic. That is ratio is still not incentive enough for a speculative transfer, but it’s certainly a better option than the direct AMEX into HHonors route. A hypothetical example is below:
15,000 Membership Rewards –> 30,000 HHonors points (with 33% bonus) OR
15,000 Membership Rewards–>20,250 Virgin Atlantic miles (with 35% bonus)
20,000 Virgin Atlantic miles–>40,000 HHonors points
Hilton Increases Qualifying Requirements for Gold/Diamond Elite Status
According to this thread on FlyerTalk, Hilton has quietly tweaked their terms and conditions to reflect new requirements to earn both Gold and Diamond elite status in the Hilton HHonors frequent guest program.
Gold elite status used to take 16 stays, 36 nights, or 60,000 base points earned in a calendar year to earn.
Diamond elite status used to take 28 stays, 60 nights, or 100,000 base points.
Per Hilton’s site, the new earning requirements are below:
I have absolutely no problem with the increases. Hotel chains will often do this in an attempt to “thin the herd,” so to speak, and cut down on the number of elite members they have. Hilton Gold and Diamond elites, in particular, receive a generous number of benefits in relation to other chains. Hilton’s mid-tier Gold members receive continental breakfast at Conrad, Hilton, and DoubleTree properties. A sampling of Hilton Gold status perks can be found below:
Starwood’s top-tier Platinum elites receive this breakfast benefit. Marriot’s top- tier Platinum elites only receive breakfast when there is no club lounge (and weekends are excluded). Priority Club’s own top-tier Platinums don’t receive breakfast at all!
These changes shouldn’t keep any of us from elite status with Hilton, which is quite easy to acquire. Both American Express and Citi offer credit cards with instant Gold status. The American Express Hilton HHonors Surpass card grants Gold status for the first year of card membership. To requalify, you need to spend $20,000 each subsequent year on the card. The American Express comes with a $75 annual fee.
The Citi Hilton HHonors Reserve Visa comes with Gold status for the life of the card without any future requalification via spend. The Citi card comes with a $95 annual fee. Both the Citi and American Express cards simply offer a far less painful way to quickly boost up to Gold status.
My real issue with this announcement, as echoed by other FlyerTalkers, is this information dropping with no notice for 2013. These last minute (or no notice) changes set a really dangerous precedent in the loyalty community. Mistrust is not a feeling that should resonate between traveler and frequent flyer/guest program.
Cornell University Study Links Hotel Reviews to Room Rates
According to this blog post on FlyerTalk, a new study by the Cornell University School of Hotel Administration links favorable hotel reviews to higher rates at those properties. Granted, this is a very common sense approach to room rates in general: the better the property, the more favorable review, the greater the demand, the higher the room rate.
However, as many of you know, sites like TripAdvisor or even Hotels.com are filled with questionable reviews from unknown sources. It would be quite easy for a hotel chain to paper its own properties with smashing reviews while panning its competitors.
I bring up this blog post because MileValue will soon begin releasing hotel point valuations and the methodology behind our numbers. Room rates are tied to redemptive value, but only if you are otherwise willing to pay the full price without points. For example, if you redeem 10,000 Starpoints for a $600/night room, you only receive 6.0 cents per point in value if you would have otherwise paid that sky-high room rate. Depending on the property, very few people I know would do so. Room rates aren’t necessarily tied to value, so tread lightly when crunching the numbers.
Recap
American Express is promoting a 33% bonus on Membership Rewards transfers to Hilton HHonors points. Making such a transfer, bonus or not, is really wasting the value of Membership Rewards especially when there is a method for an even more favorable transfer to HHonors points (via Virgin Atlantic) makes this promotion not worth your time.
Hilton also changed their elite qualification requirements for Gold and Diamond elites. The changes are relatively minor, but they come very late in the year, so many have booked travel for 2013. The adjustments weren’t announced publicly either. Poor form, Hilton. I’ll continue to maintain Hilton status through credit cards.
The FlyerTalk blog posted an interesting article from Cornell University regarding travel reviews and room rates. I’m passing it along simply to remind everyone that room rates are not always products of expected value, but a myriad of factors including location, reputation, and demand.
Posted in Forum Buzz, Hilton, Membership Rewards
Tagged Hilton, Membership Rewards, Virgin Atlantic
Virgin Atlantic-35% Bonus on Membership Rewards Transfers
According to the American Express Membership Rewards website here, Virgin Atlantic is offering a 35% bonus when transferring Membership Rewards into Virgin Atlantic Flying Club miles.
This offer is available through December 29th. Transfers must be made in increments of 1,000 Membership Rewards. The minimum transfer will yield 1,350 Flying Club miles.
Is this a good deal?
Unfortunately not. Virgin Atlantic features an incredible onboard product and great club lounges. However, they impose extremely hefty fuel surcharges on flights…so hefty that it isn’t even worth a redemption for most travelers.
Scott has actually written several articles about Virgin Atlantic’s frequent flyer program in the past. In his post, Redeem for Virgin Atlantic Upper Class without Surcharges, he detailed how you could avoid those sky high surcharges by using Hawaiian Airlines miles to book Virgin Atlantic awards instead of Virgin’s own miles! There are several ways to amass Hawaiian miles quickly, including transferring Membership Rewards. In many cases it made sense to transfer to Hawaiian instead of Virgin to save hundreds of dollars out of pocket.
Sadly, as Scott detailed in his recent post, Hawaiian’s Virgin Atlantic Chart Devalued, the substantial increase in the amount of Hawaiian miles required to book Virgin awards really turns this into a poor use of Hawaiian miles.
So I should avoid Membership Rewards transfers to Virgin altogether?
Not necessarily! Virgin Atlantic miles are still valuable. Virgin miles can be transferred to Hilton HHonors points at a ratio of 1:2. That means 1 AMEX point becomes 2.7 HHonors points during this Virgin Atlantic transfer bonus. Membership Rewards actually transfer directly to HHonors at a much worse 1:1.5 ratio.
We’ll be rolling out our hotel point valuations soon, but provisionally let’s value one Hilton point at 0.4 to 0.6 cents. At 0.4 cents, these transfers would value one Membership Rewards at 1.08 cents. That’s a pretty awful because Membership Rewards are worth much more than that.
At 0.6 cents, the the implied valuation of one Membership Reward is 1.67 cents, still too low, but getting reasonable if you are topping off for a specific AXON or GLON redemption.
For further reading, check out Scott’s post Transferring Virgin Atlantic Miles to HHonors Points. You can also read more about these transfers on Virgin Atlantic’s website here.
Keep in mind the minimum transfer is 10,000 Virgin Atlantic miles and they must be converted to HHonors in increments of 5K. If you are in desperate need of HHonors points, you will yield far more points by using Virgin Atlantic as the middle man in this transaction. Move your Membership Rewards points to Virgin Atlantic and then convert them to HHonors. Check out the math on a sample transfer below:
15,000 Membership Rewards –> 22,500 HHonors points OR
15,000 Membership Rewards–>20,250 Virgin Atlantic miles (with 35% bonus)
20,000 Virgin Atlantic miles–>40,000 HHonors points
By routing through Virgin Atlantic you net 17,500 more HHonors points! That’s a nifty 77% bonus!
How long does it take for Virgin Atlantic Miles to convert to HHonors points?
Virgin’s website states that transfers can take up to 30 days, but reports on FlyerTalk vary from a week to two weeks. If you have a specific hotel redemption in mind, be warned that this is not instantaneous!
I have tons of Membership Rewards points, where should I transfer them?
Scott actually tackled this question in a previous post, What to Do with an American Express Annual Fee Coming Up and Unused Membership Rewards. Membership Rewards are inherently valuable due to their flexibility. If you have a specific award redemption in mind, the ability to transfer to airlines such as Delta, Singapore, British Airways, or even Virgin Atlantic makes them much more useful than just holding, for example, only Delta Skymiles.
Your best option is to keep your Membership Rewards, but if you have to transfer due to an upcoming annual fee, British Airways Avios have some good sweet spot redemptions, especially on normally expensive short haul trips. For more reading, make sure to check out Scott’s posts, How Much Are Avios Worth? The Value of British Airways Avios as well his recent entry Avios Awards within South Africa.
Referencing the Mile Value Leaderboard, we value Membership Rewards at 1.79 cents. Avios are a slight step down at 1.70 cents, which is the option value lost when you transfer a flexible point to a specific program.
United Airlines to Raise Club Membership Fee By $25
According to this thread on FlyerTalk and United’s own website, United will be raising the price of all membership rates by $25, effective January 1st. Three year membership terms will also be discontinued. The new rates beginning next year are below.
As I’ve stated before, lounge access can be a huge benefit when traveling, especially in bad weather or when your flight experiencing mechanical delays or cancellations.
The fact that United is raising prices is a bit surprising. As I detailed in a previous post, Elite Status Offers for Delta/US Club Memberships, purchasing a US Airways Club membership actually allows you access to all United clubs (and vice versa). US Airways’ standard one year membership fee is $450, $25 cheaper than United’s new pricing chart. If you are looking for access to United lounges, buying a club membership with US Airways seems like an easy decision.
Recap
Virgin Atlantic is offering a 35% bonus on all Membership Rewards transfers. While this may seem like a great deal, Virgin has run transfer promotions in the past. 35% isn’t even the most generous bonus they have offered in the past, as they just wrapped up a 40% bonus in September.
Still, if you need to top off an account or potentially boost your HHonors balance, this might make sense. We aren’t advocating you transfer speculatively, though. Membership Rewards are valuable due to their flexibility–they transfer to a variety of carriers. Retaining that flexibility is important if you don’t have a specific redemption in mind at this time.
United is raising the price of their Club memberships by $25. The standard price for a one year lounge membership is $450 with the other three legacy carriers, so it will be interesting to see if they follow suit and nudge their prices upward. US Airways club membership remains $25 less expensive and includes access to United lounges as well. If you are in the market for a United Club membership, save the $25 and join up with US Airways.
Posted in American Express, Hilton, United, US Airways, Virgin Atlantic
Tagged Hilton, Membership Rewards, Virgin Atlantic
I have earned millions of points, primarily though credit cards, to travel the world in first class for pennies. This blog will show you how to earn and redeem points to do the same!