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Hotels Offering Fewer Rewards?

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    Travel expert Mark Murphy on hotels reducing the value of reward points.

  • Duration 5:08
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Attention travelers the next time you say the big name hotel it's gonna cost you especially if you worry frequent traveler travel expert Mark Murphy joins me now with watch.

Our -- -- these hotel favor these hotel program he -- -- you get special deal here and they're not doing so well let's start out with Hilton for example -- is the third time in the last decade they've actually reduced what they're offering right -- -- and.

On basically what they're doing is they're devaluing the currency the points if you would that -- earned as a frequent guest.

And by devaluing those points need more points to get a steady and therefore you have to stay more -- spend more.

To get your free nights in the making -- work harder and they're get more room revenue as a result that I think part of this is to bring that liability down.

So they're doubling points -- the peak season yeah example with that.

Hilton DoubleTree.

We're -- accessing -- will require a thousand to 3000 more in rewards spending thank you very much in right so what you know I look at this as frequent travelers this is not for the average leisure travel and -- a business guys.

That are going to stand in the -- -- -- -- has been a lot of this network all the time and -- as they rely on this because let's face it if you're a member of any kind of rewards -- gotten gain assist them.

You track the -- and try and and you try to get everything and I and I absolutely it's still first it was the airlines.

It's -- now it's hotels are they in such a dire financial straits they just can't make no actually the business is coming back so back average rate average rates are a hot.

Occupancy levels are up so the -- -- squeeze is on recovery just finding a way to I think what they're looking at is look at the liability they have -- all these points that are out there and they've got to pay the piper at some point times have they can reduce that without impact in the loyalty.

And it comes down to that how much can they -- -- without.

Get you to go somewhere else and all -- -- it.

Let's talk about -- -- -- on the site seemed aren't saying right.

Talking points and have a.

Changing.

Well so what they're doing as a requiring you to earn about 25% more spent about 25% more to get the same redemption.

Because what they're doing is -- -- some of their hotel categories up -- 36% of the hotels that they have.

Are moving up the tear in the terms of the categories between the caution would have stayed there for 46 so -- get -- again I gotta earn more -- it's all about you stand not earning mortis.

There for free and I -- -- quit.

Now your frequent traveler I hear all the time you -- JIOK Mary it's longworth will require 500 bucks extra -- -- spending to get every night there's pill on them out.

It's about Starwood -- -- -- which is a very popular Starwood had won the best loyalty programs around and they're just increasing at about 25% on average between the cash -- points program yet so again.

You can pay a little bit and use your points and cash it in four.

Upgrades as well as.

Total stays so people like that they can upgrade.

In some -- to use and the points along with the dollar amount was kind of the W in the west and these are two very -- yeah.

Great brands people love them it will cost you more -- for your free stuff -- -- cash in your free stuff.

A -- we're Starwood Saint Regis members need to rack up a thousand more points plus an extra thirty backs.

To get this if you look at the state this egregious it's not a bad place Ellison about -- for the -- that you have to say more and spend more.

-- -- -- strategies for coping with us let's say I put him on the road all the time maybe to a sales person right.

And I I'm out travelling and I used to rewards programs to their best defending what do we do now.

All right so you stand near king you accumulate and you have to look at try to travel off peak with the rewards because just like it's cheaper to travel and pay the dollars.

It's cheaper to use the points because during peak season saw -- miners.

They're gonna double in some cases the hotels during peak season especially the most popular once it try to book away from most and no room nights that they want to just give you because -- -- -- They're not gonna sell some of those room nights so it doesn't hurt the revenue and the bottom line that's critical and and -- -- -- they look at.

A couple of things called travel agent I -- -- at the London hotel independent property I'm 54 street last week.

349 rate now here in New York in New York City but I got a hundred dollar food and beverage credit and I got a free breakfast.

And -- people if you really -- -- -- off either way has worked with a traveling to have access to a special -- program.

That they're part of these guys know some unions announced a source close to start -- travel agents again I absolutely -- I was over traveling until sixty to 70% of -- cruises tours they -- 60% of all international airline tickets.

And they are great service provider that give you -- high touch.

Married to the high tac.

In the market aren't funny says shopping online compared -- markets after me next to me that the airlines hotels -- -- -- -- gonna try to get more money -- well I hope you spend some money on some vacation this year so wanna jump into a cruise.

Take a cruise.

The cruise after that Fiat still highly paid better deals right now and there -- great vacation experience even though -- one million people cruise last year.

And that was one -- -- 4000 put -- -- she apple just sit on the ship go nowhere and have no food no water no bigger fish.

That was bad luck right I had him over what I wanna but I bet on actress well -- It's worth thinking about mark thanks for coming on an open our minds to other option I have -- -- John Kerry Ellis trial.

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