No it's not right they should reckon on implementing 'Grandfather rights' and only give the lower value to points issued after the start date of the new ( lower) value points.
This however is nowhere near as bad as what Marriott has done for its timeshare owners. In 1986 when Marriott entered the timeshare business they offered to trade 110,000 points for a week of timeshare. Today, 24 years later, they still offer 110,000 points for that week of timeshare. That's a reduction in value of 300 - 400 per cent. The worst thing is that I suspect that Marriott planned for this to happen, as it clearly helps only their profit figures!
Look carefully before you enter the world of Marriott timeshare.
"IHG is recognizing some Hilton points after Hilton decreased the value of the points already awarded their good customers."
IHG's 'Luckiest Loser' promotion targets HHonors members who also belong to IHG Priority Club Rewards where the top 20,000 'losers' will gain back 20% of their current balance with Hilton.
"Do others think this is the right approach?"
Regrets. First of all, what do loyal IHG Priority Club members who never engaged in brand hopping at Hilton get? Striking a parallel, what would loyal Marriott Rewards members gain if Marriott engaged in a copy-cat promotion?
'Dilution' of Elite benefits is a very slippery slope. Overtly rewarding 'losers' who paid dues with another brand and giving them preferential treatment sets a precedent that is bold but very risky. In the context of Marriott Elite culture, it raises serious questions about the value of being loyal to Marriott.
To clarify LesliePamel's comments, Marriott Vacation Club timeshare owners are a unique segment. Under contract and under local statute, these owners have 'deeded' ownership in Marriott. In ownershop, the sense of loyalty is heightened. Copying the IHG program by awarding a % of points lost to Hilton potentially risks corrosion of owner trust and credibility in Marriott; since point values lost in the 2009 changes have yet to be regained.
Having said all that, there is definite value in Marriott crafting a different promotion that rewards those who have demonstrated their loyalty consistently by giving them additional bonus points. That's the thinking behind the Megabonus and the Elite bonus of 20%, 30% and 50% for Silver, Gold and Platinum.
Update 3/31: As made evident in the Hotel World Network poll, Marriott Rewards is ahead of the curve and the dominant loyalty program in the hospitality marketplace.
Even though it's very competitive out there from a PR standpoint you should never point out the faults or perceived faults of your competition when they can do it so well themselves!
The points devaluation focus on Hilton Honors and the recent remarks from one of their leaders is sufficient press to allow the corporation and loyalty program to be needing damage control.
Other companies need to ensure that their programs are seen in a favorable light, and thanks to HHonors' moves, the task is not all that hard.
IHG (to which I've belonged as a top tier member) will likely gain a few converts, more from spite over the HHonors issue than love of the IHG brand, in my opinion.
TJ: Excellent chart, thanks for finding and posting it.
The fine print is what matters as well--that discounts may skew the results and not necessarily across the spectrum of hotels. Many discounts are capacity controlled: when the hotel reaches a certain occupancy level, the discounts begin to be more scarce and may even disappear. In addition, the level of discounts varies from chain to chain. Last there are unannounced specials that pop up from time to time, including offerings on Priceline.
Has anyone else received an e-mail from HHonors about Point Stretcher Rewards? The promotion claims 40% savings:
Less is more
Point Stretcher Rewards
Book free stays for fewer points than Standard Rewards. Point Stretcher Rewards are available now through June 30, 2010 at participating hotels. Point Stretcher hotel rewards let members stay for 40% fewer points than the amount of points required for Standard Hotel Rewards at participating Point Stretcher hotels worldwide on select dates.
While attractive and a way to burn devalued points; 'Book Now' delivers a 'Bad Request' error. Anyone else get that?