Best Hotel Rewards Program
3:19 AMPosted by: Alina Comoreanu
The best hotel rewards programs provide a wide range of free perks. Members receive special amenities such as free Wi-Fi, late check out and bar credits. But that’s just the beginning. Most importantly, the top hotel rewards programs let you quickly earn free nights, redeem them with ease, and go about your business without worrying about fine-print restrictions.
Every major hotel chain has its own loyalty rewards program, you see, which anyone can join for free. But these hotel rewards programs are not equally rewarding for everyone. They all have different rules, earning rates and point values, plus a variety of other perks. And much ultimately depends on where you travel, how often you stay in hotels, and how much you’re comfortable spending per night.
So to help families, business travelers and explorers of all types save more time and money, WalletHub compared the 12 most popular hotel rewards programs using 21 key metrics, ranging from point values to booking blackout dates. And we did so for three different hotel budgets.
| Best for… | Hotel Rewards Program | Overall WalletHub Score | Number of Hotels |
|---|---|---|---|
| Overall | Wyndham Rewards | 72.39 | 7,930 |
| Rewards Value | La Quinta Returns | 59.33 | 894 |
| Points that Won’t Expire | Best Western Rewards | 65.18 | 4,195 |
| Fewest Earning Limitations | Club Carlson | 59.80 | 1,154 |
| Redemption Options | Wyndham Rewards | 72.39 | 7,930 |
| Transfer Partners | Hilton Honors | 56.24 | 5,168 |
| International Travel | Marriott Rewards | 62.44 | 6,400 |
Below, you can check out the rest of the results from WalletHub’s hotel loyalty rewards comparison. You can also crunch the numbers to find the best hotel rewards program for your individual needs using our custom calculator, which personalizes the results of this study based on your budget.
What’s the Best Hotel Rewards Program for You?Many aspects of a hotel rewards program are binary in nature: a program either has a certain feature or it doesn’t. But much also depends on the amount of money you spend with a given hotel chain each year. And while the Light, Moderate and Heavy hotel spending profiles used in this report cover roughly 60% of people, according to Census and Bureau of Labor Statistics data, it’s certainly understandable if you want a more personalized recommendation.
The following calculator will provide just that. Simply input your annual hotel budget, and we’ll apply the methodology and data used for this report to your individual situation.
Annual Amount Spent On Hotel Stays Best Program Wyndham Rewards WalletHub Score: 72.75 Runner-up Best Western Rewards WalletHub Score: 68.32 Main FindingsFor the third year in a row, Wyndham Rewards is the best hotel loyalty program for travelers of all spending levels, earning an average WalletHub Score of 72.30.
La Quinta offers up to $13.65 in rewards value per $100 spent – most among major hotel loyalty programs.
Two-thirds of hotel loyalty programs are offering as much or more rewards value as in 2016.
Best Western is the only major hotel chain whose rewards points do not expire due to account inactivity.
You’d better know what you’re looking for in a loyalty program because very few hotels rank in the top five in more than two of the five major categories WalletHub considered.
| Hotel Rewards Program | Geographic Coverage Rank | Value of Rewards Rank | Earning Limitations Rank | Redemption Options Rank | Additional Features & Policies Rank |
|---|---|---|---|---|---|
| Hilton Honors | 6.00 | 9.00 | 8.00 | 8.00 | 5.00 |
| Marriott Rewards | 1.00 | 6.00 | 8.00 | 10.00 | 4.00 |
| Choice Privileges | 8.00 | 4.00 | 12.00 | 5.00 | 9.00 |
| IHG Rewards Club | 4.00 | 11.00 | 8.00 | 7.00 | 11.00 |
| Wyndham Rewards | 5.00 | 2.00 | 4.00 | 2.00 | 6.00 |
| Club Carlson | 9.00 | 5.00 | 1.00 | 4.00 | 7.00 |
| Starwood Preferred Guest | 1.00 | 12.00 | 8.00 | 11.00 | 3.00 |
| The Ritz-Carlton Rewards | 1.00 | 7.00 | 1.00 | 9.00 | 10.00 |
| World of Hyatt | 10.00 | 8.00 | 1.00 | 6.00 | 8.00 |
| Best Western Rewards | 7.00 | 10.00 | 4.00 | 3.00 | 1.00 |
| La Quinta Returns | 11.00 | 1.00 | 4.00 | 12.00 | 2.00 |
| Drury Gold Key Club | 12.00 | 3.00 | 4.00 | 1.00 | 12.00 |
One-quarter of hotel programs do not allow members to redeem points for award nights at all brands/properties.
The value in purchasing hotel rewards points varies widely from program to program. With some, it’s a rip-off, while others make it a no-brainer.
None of the hotel rewards programs allows members to earn points on reservations booked through third-party websites, such as Kayak.com or Expedia.com.
You can find detailed scoring for each hotel rewards program in the next section. But after reading the headlines, you might be interested in a quick recap of the top options first. For your convenience, please find a summary below.
Here are the best hotel rewards programs:
- Overall: Wyndham Rewards
- Rewards Value: La Quinta Returns
- Points that Won’t Expire: Best Western Rewards
- Fewest Earning Limitations: Club Carlson
- edemption Options: Drury Gold
- Most Transfer Partners: Hilton Honors
- International Travel: Marriott Rewards
The following table illustrates the number of points each hotel rewards program received in each category evaluated by WalletHub.
| Scoring Categories | Maximum Score | Hilton Honors | Marriott Rewards | Choice Privileges | IHG Rewards Club | Wyndham Rewards | Club Carlson | Starwood Preferred Guest | The Ritz-Carlton Rewards | Hyatt Gold Passport | Best Western Rewards | La Quinta Returns | Drury Gold Key Club |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Number Of Hotels | 6.00 | 3.90 | 4.84 | 4.91 | 3.98 | 6.00 | 0.84 | 4.84 | 4.84 | 0.52 | 3.16 | 0.64 | 0.08 |
| Country Coverage | 4.00 | 3.27 | 4.00 | 1.11 | 3.17 | 2.10 | 3.65 | 4.00 | 4.00 | 1.81 | 3.43 | 0.16 | 0.03 |
| Total Number Of Hotels In Top 10 Us Cities | 3.00 | 2.17 | 3.00 | 1.45 | 1.48 | 1.49 | 0.16 | 3.00 | 3.00 | 0.41 | 0.70 | 0.35 | 0.01 |
| Total Number Of Hotels In Top 10 International Cities | 2.00 | 1.13 | 1.94 | 0.81 | 2.00 | 1.03 | 0.37 | 1.94 | 1.94 | 0.22 | 1.56 | 0.03 | 0.00 |
| Value Of Rewards Heavy Traveler | 25.00 | 9.62 | 16.06 | 16.42 | 6.30 | 23.68 | 15.16 | 2.94 | 11.61 | 13.14 | 9.95 | 25.00 | 19.16 |
| Value Of Rewards Moderate Traveler | 0.00 | 13.63 | 13.15 | 14.86 | 8.97 | 24.02 | 13.71 | 1.45 | 15.11 | 13.57 | 12.71 | 25.00 | 20.68 |
| Value Of Rewards Light Traveler | 0.00 | 13.63 | 13.15 | 12.32 | 8.97 | 24.02 | 13.71 | 1.45 | 15.11 | 13.57 | 10.37 | 25.00 | 20.68 |
| Earning Points For On-Site Expenses | 3.00 | 3.00 | 3.00 | 0.00 | 3.00 | 0.00 | 3.00 | 3.00 | 3.00 | 3.00 | 0.00 | 0.00 | 0.00 |
| Do Reservations At All Of A Program’S Hotel Brands Earn The Maximum Number Of Points? | 5.00 | 0.00 | 0.00 | 0.00 | 0.00 | 5.00 | 5.00 | 0.00 | 5.00 | 5.00 | 5.00 | 5.00 | 5.00 |
| Third-Party Booking | 7.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Brand Exclusions | 2.00 | 2.00 | 0.00 | 2.00 | 2.00 | 2.00 | 2.00 | 0.00 | 0.00 | 2.00 | 2.00 | 2.00 | 2.00 |
| Room Redemption Volatility | 2.00 | 0.20 | 1.50 | 1.52 | 0.90 | 2.00 | 1.32 | 0.35 | 1.87 | 1.50 | 1.65 | 1.70 | 1.73 |
| Blackout Dates | 7.00 | 7.00 | 7.00 | 7.00 | 7.00 | 7.00 | 7.00 | 7.00 | 7.00 | 7.00 | 7.00 | 0.00 | 7.00 |
| Percentage Of Hotels With Award Night Availability | 6.00 | 5.46 | 5.41 | 5.65 | 5.44 | 5.39 | 5.88 | 5.49 | 5.35 | 5.64 | 5.73 | 5.69 | 6.00 |
| How Far In Advance Can Reservations Be Made? | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 |
| Short-Notice Reservations | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 |
| Points Expiration | 5.00 | 0.56 | 1.67 | 1.11 | 0.56 | 1.11 | 1.67 | 0.56 | 1.67 | 1.67 | 5.00 | 1.11 | 1.11 |
| Ease Of Achieving Top Membership Status | 2.00 | 1.62 | 1.07 | 1.67 | 0.87 | 1.80 | 1.68 | 1.67 | 0.00 | 1.40 | 1.81 | 2.00 | 2.00 |
| Number Of Transfer Partners With No Fee | 2.00 | 1.63 | 1.57 | 0.57 | 1.37 | 0.80 | 1.03 | 1.33 | 1.63 | 0.97 | 1.40 | 0.63 | 0.13 |
| Can Points Be Purchased At Fair Value? | 2.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2.00 | 2.00 |
| Can Earnings Be Shared Between 2 Or More Accounts For Free | 2.00 | 0.00 | 2.00 | 0.00 | 0.00 | 0.00 | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 | 0.00 |
| Can You Reinstate Lost Earnings? | 2.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 2.00 | 0.00 | 0.00 |
| Valuable Membership Level Perks Heavy Traveler | 5.00 | 4.00 | 4.00 | 3.00 | 3.00 | 3.00 | 4.00 | 5.00 | 2.00 | 4.00 | 4.00 | 3.00 | 0.00 |
| Valuable Membership Level Perks Moderate Traveler | 0.00 | 4.00 | 3.00 | 3.00 | 2.00 | 3.00 | 1.00 | 3.00 | 2.00 | 1.00 | 4.00 | 3.00 | 0.00 |
| Valuable Membership Level Perks Light Traveler | 0.00 | 4.00 | 3.00 | 2.00 | 2.00 | 2.00 | 1.00 | 3.00 | 2.00 | 1.00 | 3.00 | 3.00 | 0.00 |
| Total Heavy Traveler | 100.00 | 53.56 | 65.05 | 55.22 | 49.06 | 72.40 | 62.77 | 51.11 | 62.91 | 58.27 | 64.39 | 59.32 | 54.25" |
| Total Moderate Traveler | 0.00 | 57.58 | 61.14 | 53.66 | 50.73 | 72.75 | 58.32 | 47.62 | 66.40 | 55.70 | 67.15 | 59.32 | 55.77" |
| Total Light Traveler | 0.00 | 57.58 | 61.14 | 50.12 | 50.73 | 71.75 | 58.32 | 47.62 | 66.40 | 55.70 | 63.81 | 59.32 | 55.77" |
For a deeper understanding of what both consumers and hotel chains get from these programs and how they impact the behavior of both parties, we posed the following questions to a panel of leading hospitality and consumer studies experts. You can check out their bios and responses below.
- Who benefits more from hotel rewards programs: consumers or hotel chains?
- How do hotel rewards programs impact consumer behavior?
- Do you think consumers under- or overvalue the benefits of hotel rewards program membership?
- To what extent do you think mergers, acquisitions and alliances of individual brands impact hotel loyalty?
Sung H. Ham Assistant Professor of Marketing in the School of Business at George Washington University
Douglas Hausknecht Associate Professor of Marketing & International Business and Assessment Officer at The University of Akron
Deepak Chhabra Associate Professor in the School of Community Resources and Development, and Senior Sustainability Scientist in the Global Institute of Sustainability at Arizona State University
Lei Huang Assistant Professor of Marketing in the School of Business at The State University of New York at Fredonia
Who benefits more from hotel rewards programs: consumers or hotel chains? Hotel chains benefit more from hotel rewards programs than consumers. In order to receive significant benefits from the hotel rewards programs, consumers will need to combine their rewards program with a hotel credit card or be a frequent business traveler. The current structure requires multiple stays to receive a free night or to be elevated to a premier tier of benefits. As a result, hotel chains can avoid rewarding the consumer unless the consumer has been loyal and committed over a significant period of transactions. How do hotel rewards programs impact consumer behavior? Hotel rewards programs affect different consumers differently. For heavy users (business travelers or the avid vacationer), consumers will be loyal to a particular hotel chain because of the reward benefits that the consumers can receive from that chain (i.e., room upgrades, free breakfast, free nights, high speed internet, etc.). These consumers are less likely to compare prices for two reasons: 1) their employers pay the hotel bill or 2) the benefits that they receive from staying with a particular hotel chain outweigh the price discount from staying at another hotel chain. For non-heavy users (infrequent travelers), the rewards programs do little to affect behavior because they are not likely to receive substantial benefits from any one hotel chain. In fact, many consumers enroll in multiple rewards programs simultaneously and use third-party websites or apps to compare rates while choosing a hotel. Do you think consumers under- or overvalue the benefits of hotel rewards program membership? I think that the typical consumer generally overvalues the benefits of hotel rewards program membership, and underestimates the commitment required to obtain those benefits. A free night in a hotel is attractive, but it may not be realized since it requires multiple nights of stay. This can entail a substantial commitment from the consumer over a significant period of time. Even if consumers are motivated to achieve the free night, consumers may still overvalue the rewards that can be obtained from being loyal. Loyal consumers are less likely to engage in price comparisons and may ultimately end up paying more for each stay to earn the free night reward. Conversely, disloyal consumers are more likely to engage in price comparisons and may find markedly lower rates at comparable hotels. The accumulated savings from engaging in price comparisons could allow disloyal consumers to pay for the free night (and possibly more) themselves. To what extent do you think mergers, acquisitions and alliances of individual brands impact hotel loyalty? Mergers, acquisitions and alliances reduce competition while simultaneously expanding the network of hotels within the newly expanded chain. I would expect for the expanded chain to reduce the benefits of the rewards programs or raise room rates because of the lessened competition and the increased coverage. Moreover, I can imagine that consumers may become increasingly loyal to the expanded chain, but less than satisfied with the overall consumption experience. Douglas Hausknecht Associate Professor of Marketing & International Business and Assessment Officer at The University of Akron 
Who benefits more from hotel rewards programs: consumers or hotel chains? “Benefits” may be more than financial. Hotels can afford to give quite a bit of perceived value to consumers, because the hotels have small marginal costs relative to the normal charges. Consumers benefit from a tangible saving, relative ease of decision making and an intrinsic boost from having “earned a reward.” How do hotel rewards programs impact consumer behavior? Some segments of consumers are loyal by nature and respond particularly well to incentives to maintain that behavior. Even those who shop around and choose “outside” of the reward plan usually consider whether the reward property is worth it for that purchase. Most marketers work very hard just to get considered in the decision making process. A loyalty program makes this much more likely. Published research compares the effect of the number of reward categories, the presence of others (e.g., does your family see you get rewarded at the counter), and other factors in the process. Do you think consumers under- or overvalue the benefits of hotel rewards program membership? As noted above, the financial benefits in terms of price off may be fairly good. There may be less expensive properties or better financial deals elsewhere, but it is difficult to say that the offerings are identical. Often, consumers may choose brands based on familiarity with offerings and locations. The intrinsic benefits may be valued highly. To what extent do you think mergers, acquisitions and alliances of individual brands impact hotel loyalty? Consumers will tend to be responsive to the flag first, not ownership or alliances. If ownership extends choices within a loyalty program, consumers may perceive a benefit but may dilute the self-identity with a single brand. If the change in ownership results in a degradation of service or value, consumers will notice and revolt. Deepak Chhabra Associate Professor in the School of Community Resources and Development, and Senior Sustainability Scientist in the Global Institute of Sustainability at Arizona State University 
Who benefits more from hotel rewards programs: Consumers or hotel chains? Both benefit. In the case of consumers, it depends on the type of consumer. Light users are less likely to benefit than more frequent users. When light users are price sensitive, price competition with other hotel chains rarely generates loyalty among this segment. Because reward programs increase market prices, light users do not get the reward; it is the more frequent users who are likely to benefit. Hotel chains benefit in terms of building customer loyalty, especially if they are able to generate satisfaction, commitment, and positively influence repatronage intentions through carefully designed reward programs. In some cases, reward programs generate short-term revenue and a hotel chain is likely to end up with more future obligations and higher operating costs, especially, if there is competition and if the consumers are price sensitive. That said, for chains with high market share, reward programs can help enhance value perceptions and forge affective (emotional) bonds. The later positively influence brand loyalty. Furthermore, strategically designed reward programs hold potential to increase revenue because of lower cancellations and increased usage of service levels. Also, such programs help manage excess demand in busy times. Also, they help deal with oversupply issues when demand falls or fluctuates as in off-peak seasons. How do hotel rewards programs impact consumer behavior? They can generate loyalty and help build long term relationships. Those enrolled in reward program often demonstrate high satisfaction levels and give high service quality ratings. Their switching costs increase especially if they develop an affective bond with the product and the hotel chain. Consumers, seeking only value, are less likely to be loyal. In due course of time, they learn to extract more utility out of the reward programs and switch when the competition offers a better deal. Also, positive consumer behavior is influenced by the type of reward and its timing (immediate or delayed. Hotel chains might pursue a delayed redemption for retention purpose). One recent study has reported that in high involvement, direct rewards are sought whereas in low involvement scenarios, preference is to seek immediate rewards. One study reports that consumers with heavy usage levels, at initial stages in the program, are more likely to seek rewards quickly. Another study has noted that the spending and loyalty of this market remained the same overtime. Surprisingly, it has been reported that such programs are successful in attracting light and moderate users by increasing their usage level and spending and earning their loyalty. Tiered reward program memberships offer an interesting scenario. The higher tier membership has high switching costs and is more likely to generate affective commitment, thereby remaining loyal for an extended period of time. It is also important to note that reward program tiers affect price sensitivity. Consumers who are committed because of value-based offerings, are price sensitive and their loyalty is based on the type and attractiveness of reward. Lower reward tier members were more price sensitive. It is often easier to attract lower tier reward members and to create high value commitment through discounts and reward points. Do you think consumers under- or overvalue the benefits of hotels rewards program memberships? Many times, consumers overvalue hotel reward program memberships. It also depends on what they want from the membership. Also - depends on service quality, service recovery procedures, communication and accurate information. Also, some studies have pointed out that ‘reward structure and customer-program fit’ significantly influence perceived value of reward programs. To what extent do you think mergers, acquisitions and alliances of individual brands impact hotel loyalty? Strategically planned mergers, acquisitions and alliances offer multi and co-branding opportunities and expand the value chain thereby offering more variety and breadth of experience and products. They can help build economies of scale and lower operating costs and build a high market share. This means that more investment can be afforded for better rewards to build loyalty and emotional bonds, thereby building long-term relationships. Lei Huang Assistant Professor of Marketing in the School of Business at The State University of New York at Fredonia 
How often would you recommend applying for one of the best credit cards on the market? There are a number of different theories on how frequent people should apply for the credit cards. FICO says that people with six or more inquiries on their credit report are eight times more likely to default, and inquiries stay on your report for about two years. This doesn’t mean you can apply for three credit cards in one week and lay low for the next two years. From the lender’s perspective, someone who needs that much additional credit in a short period of time is probably a risky borrower. On the opposite, the six-inquiry guideline doesn’t necessarily mean you’re limited to three credit cards a year, either. People with excellent credit have reported success in waiting just three months between applications. Generally, a six-month waiting period is a good baseline for the “prime” customers: people who spend a lot, make payments on time, have a low debt utilization ratio and typically have higher incomes. If you have great credit, a high income and a history of on-time payments, you can probably get away with less; if you don’t have good credit, you should wait longer -- as much as a year. It’s important to be careful when applying for lots of credit cards because you want to maintain good relationships with the banks and build a good credit history. Having an excellent credit score will help you obtain the best possible rate on a major loan in the future. What, if anything, do the terms offered by the market's best credit cards say about the economy? All other things being equal (i.e., your personal credit score and other info remains relatively the same), the better the economy, the lower the overall credit losses (i.e., people not paying their credit card balances off and defaulting) a given card issuer is most likely taking. When losses are lower, card programs are anxious to expand and offer better terms or value credit cards to the market. Is it sustainable for the best rewards credit cards to offer initial bonuses worth $400+? The most important attribute of a good rewards credit card is applicability: Do the card’s rewards appeal to you? If not, then it’s not the best option for you. If you want to earn rewards from your credit cards, you need to know two things: which credit cards offer the most rewards, and which rewards match your spending habits. For example, a credit card delivers a massive 6% back on groceries and 3% on gas. That’s some of the best rewards potential available on the market -- but it’s worthless if you eat out all the time and don’t own a car. In that case, your expenses are probably more aligned with a travel credit card, earning 2x points for travel and dining and includes a hefty 50,000-mile sign-up bonus. If you’re looking to earn as many rewards as possible, start with a cash back card. Cash is the most universal form of rewards; an airline card, for example, may limit how you redeem the miles you earn strictly to airfare. Of course, picking a cash back card takes the same understanding of your spending habits as any other rewards card.
Methodology
This report compared the loyalty rewards programs operated by the 12 largest hotel chains in the U.S., based on number of properties, using publicly available information and company policies posted online. Where policies were incomplete or ambiguous, we confirmed them with the respective hotel chain’s customer service department. Once data collection was complete, we reached out to the public relations departments of each hotel chain to confirm our findings. Wyndham, Choice Privilege and Drury did not confirm the information. Data is accurate as of 11.27.2017.
The scoring framework used to evaluate each program, and ultimately identify the best option for different types of consumers, can be found below. Most of the metrics were first graded on a 100-point scale. Generally, full points were awarded to the best-performing program for that metric, while the zero-point level was set slightly below the worst program’s result. Point allocations for more-binary metrics that did not use this 100-point scale are explained below.
B. Country coverage (max score: 4 points) We collected the total number of countries in which each rewards program has properties.
C. Total number of hotels in top 10 U.S. cities (max score: 3 points) We tabulated the total number of hotels for each program within a 50-mile radius of the 10 best places to visit in the U.S., according to tripadvisor.com.
D. Total number of hotels in top 10 international cities (max score: 2 points) We tabulated the total number of hotels for each program within a 50-mile radius of the 10 best international travel destinations, according to tripadvisor.com.
2. Value Of Rewards (total score: 25 points) Using lodging expenditure data from the U.S. Bureau of Labor Statistics and household income data from the U.S. Census Bureau and the U.S. Travel Association, we created three consumer spending profiles:
- Light Traveler: Makes $40,000 - $59,999 per year and spends roughly $487 on hotel accommodations
- Moderate Traveler: Makes $60,000 - $99,999 per year and spends roughly $779 on hotel accommodations
- Heavy Traveler: Makes $100,000 - $200,000 per year and spends $1,461 on hotel accommodations
These profiles, which reflect the fact that U.S. consumers spend an average of 0.97% of their annual income on hotel accommodations, helped us to more-accurately assess the value that members would glean from each hotel rewards program, as they feature graduated status levels that provide different earning rates and redemption options based on amount spent. Temporary promotions, such as holiday deals, have not been taken into account. Earning rates were calculated for the second year of program membership.
After tabulating the number of points that each type of traveler would earn via each hotel’s loyalty program, we calculated the value of those earnings based on the average value of a point when redeemed for a free night. Average point values were determined by comparing the cost of a three-night reservation purchased with dollars and points, respectively, in 20 of the most popular global travel destinations: 10 domestic and 10 international. Quotes were obtained for weekday and weekend travel during each destination’s high and shoulder travel seasons. Dollar costs were then divided by point prices, and the quotients were averaged to obtain an overall average point value for each program. Fees and taxes were excluded unless a given program’s points were attributable to such costs.
3. Earning Limitations (total score: 15 points)
- If members earn the maximum number of points on hotel expenses other than room reservations (such as food and beverage, telephone, laundry, pay-per-view movies, entertainment and recreational facilities) = Full points
- If consumers do not earn the maximum number of points on expenses other than the room = No points
B. Do reservations at all of a program’s hotel brands earn the maximum number of points? (max score: 5 points)
- If consumers are awarded the maximum number of points for reservations at all of the hotel brands under a chain’s umbrella = Full points
- If consumers are not awarded the maximum number of points across all hotel brands = No points
C. Third-party booking (max score: 7 points)
- If consumers are awarded points when booking stays through a third party (for example, booking websites such as kayak.com and expedia.com) = Full points
- If consumers are not awarded points when booking stays through a third party = No points
4. Redemption Options (total score: 25 points)
- If a rewards program allows members to redeem their points for any hotel brand within the hotel chain = Full points
- If a rewards program does not allows members to redeem their points for any hotel brand = No points
B. Room-redemption volatility (max score: 2 points) We divided the minimum number of points needed to book a room by the maximum in order to get a sense of the magnitude of the difference that exists in award night pricing.
C. Blackout dates (max score: 7 points)
- If a rewards program does not have blackout dates for award nights = Full points
- If a rewards program has blackout dates = No points
D. Percentage of hotels with award night availability (max score: 6 points) We determined whether award nights could be booked at each of the properties in a given program within a 50-mile radius of the city center in the 10 best places to visit in the U.S., according to tripadvisor.com, using four different sets of dates that include: high season weekend/weekdays and shoulder season weekend/weekdays.
E. How far in advance can reservations be made? (max score: 4 points)
- If reservations can be made 1 year in advance = Full points
- If reservations cannot be made 1 year in advance = No points
F. Short-notice reservations (max score: 4 points)
- If reservations can be made 36 hours in advance = Full points
- If reservations cannot be made 36 hours in advance = No points
5. Additional Features & Policies (total score: 15 points)
B. Ease of achieving top membership status (max score: 2 points) Based on the lowest room rate collected for each hotel program, we calculated the total spending needed to accumulate the requisite nights / stays / points for top membership status.
C. Number of transfer partners (max score: 2 points) We identified the total number of travel partners to which points can be transferred free of charge.
D. Can points be purchased at fair value? (max score: 2 points) We calculated how much it will cost to purchase the maximum number of points permitted per year by each program and how much those points would be worth upon redemption, on average.
- If the hotel chain earns a markup of 15 % or less on the transaction = Full points
- If the markup is higher than 15% = No points
E. Can earnings be shared between two or more accounts for free (max score: 2 points)
- If earnings can be shared between two or more accounts for free = Full points
- If earnings cannot be shared between two or more accounts for free = No points
F. Can you reinstate lost earnings? (max score: 2 points)
- If you can reinstate lost earnings = Full points
- If you cannot reinstate lost earnings = No points
G. Valuable membership level perks (max score: 5 points) After initially examining each hotel program, we created a list of membership perks that we believed to be most-valuable to consumers, regardless of membership level. The list comprises: late check-out, room-rate discounts, free health club and spa access, free room upgrades and priority / express check-in. We then used our consumer profiles to determine which perks each type of consumer would receive via membership in each program. Each perk is worth one point, which means that a program offering all the aforementioned perks would receive a full score. Please note, hotel programs are likely to offer more perks than the ones we have examined.
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