Life is full of hassles. Some are really big, like losing a job. Others are more of an annoyance, like changing your place of residence.
Then there are the really irritating ones that make you scratch your head and throw your hands up in complete exasperation, like certain rewards programs that really make you wonder why you even bothered to sign up.
I’ve already discussed why I think Coke Rewards isn’t worth it. Never mind my ensuing addiction to accrue as many points as possible. Before I dropped out of that program, niggling things like the nearly impossible redemption requirements for premium rewards that required me to commit myself to a life as a diabetic, mysteriously disappearing prize offerings, and points inflation (yes, it doesn’t just affect the dollar) nearly drove me to start adding a shot of Jack Daniel’s to every can of Coke I ultimately consumed.
My Warning Letter From Hilton HHonors
Needless to say, you can probably guess what was going through my mind after I received this letter from another rewards program I am currently enrolled in: Hilton HHonors.
Dear Len Penzo,
We’ve missed you! We haven’t noticed any activity on your HHonors account in more than nine months. Remember, to keep your account active, you must earn HHonors points at least once every 12 months. Otherwise, all of your points may be forfeited…
You know, this little expiring points policy really gets my goat.
Yes, I realize Hilton’s terms and conditions clearly state that I can lose my points after 12 months of inactivity. And, yes, I also understand the concept behind the reasoning — it’s meant to turn casual shoppers into repeat customers. But, if you ask me, in the long run it’s a short-sighted strategy for building brand loyalty.
Of course, if I don’t plan on staying at a Hilton property within their stated 12-month activity period I have a few other options that will keep me from losing all of my points. For example, I can:
- Earn points through one of their partner programs.
- Sign up for a credit card.
- Purchase a minimum of 1000 points for $12.50.
- Shop at their online shopping mall.
- Donate points.
But why should I have to go out of my way to do that?
Now, I have to admit, when it comes to hotel loyalty I do treat Hilton like the proverbial bridesmaid. It’s not that Hilton is a bad hotel; more often than not I find my stays at Hilton properties to be pleasant and comfortable. However, they are always my second choice because I prefer Marriott.
Even so, I don’t feel guilty for being just a little put off. After all, I’m currently at risk of losing almost 60,000 HHonors points and those points currently have an approximate value of $120. Besides, I’ve legitimately earned those points by patronizing Hilton properties and so I don’t appreciate potentially losing them.
Loyalty Isn’t an All-or-Nothing Proposition
Oh, I can hear some of you now. But, Len, you dummy, you already said your loyalty belongs to Marriott!
No, my primary loyalty belongs to Marriott. But whenever I can’t stay with them, my second choice has always been to go with Hilton. Until now, Hilton has been my undisputed back-up property.
Unfortunately, Hilton’s HHonors program is not very conducive to people like me who have chosen to rely on them as their solid second choice. But isn’t that type of loyalty worth something too? Isn’t a customer-friendly rewards program that ensures Hilton gets a guaranteed 20 percent of my business worth more than one with their current carrot-and-stick policy that may ultimately drive me away forevermore?
To be fair, Hilton HHonors isn’t the only rewards program where the consumer risks expiring points. For example, Marriott can revoke points after 24 months of inactivity, and most airlines have very tough mileage expiration policies too. And if you think Hilton is bad, Coke is really draconian; you can lose all of your Coke Rewards points after a mere 90 days of inactivity.
The good news is some of these companies are finally seeing my point of view. For example, Delta changed their rewards policy in 2011 by eliminating mileage expiration dates for their SkyMiles program. Hopefully, otherwise fine companies like Hilton will eventually reach the same conclusion. If not, I strongly suspect their flawed rewards programs will ironically have the opposite effect of what they were originally intended for: attracting and keeping a large happy base of loyal customers. Even if they’re loyal only part of the time.
Photo Credit: Mediatejack
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I agree with you on the coke rewards!
Although some hotels are more inviting I almost always go for the best deal and that is why I love Priceline. I can check out hotels that can be booked on the site and then usually can get a 2 1/2 or 3 star rated hotel (Embassy Suites, Fairfield inn and Marriot fall into this level in most locations) for $40 to $75 dollars a night depending on location by choosing the name your price option.
As far as airlines go, whoever can get me from point A to point B with the fewest stops get my business!
For rewards I use Citi Master Card and Amex. MC accumulates my points and are even carried over. Just a few weeks ago, I got a check for $300. Amex gives me rewards on a monthly basis. They deduct it from the monthly bill.
I haven’t so far joined any other rewards program.
I have both HH and Marriott accts. Marriott canceled my account for inactivity as well-
the sad thing was, it had not been two years. They asked me to write a letter to appeal, but I’ve been too busy.
I remain a member, cause, like you, I like their properties.
And I just got a free flight on Delta from my AMEX/Delta card.
I like the airline frequent flier programs, since I use the miles for overseas vacations. I prefer selecting the hotels based on the best deal for a 4 start hotel.
I guess I need to look into seeing if I have enough HHonors points to redeem. I’ve been with them for 2 1/2 years as I travel pretty frequently for work. However, I don’t travel much personally. On the road for work a lot means I just want to stay HOME.
I know you hate the Coke points deal… I like it though… keeps my 16 year old in her Seventeen magazine subscription.
Just read your post… after I got this same message from HH yesterday. Completely agree with your thoughts. Why are they trying to drive semi-loyal customers away?
I’m not sure, Cheri, but that’s exactly what they’re doing.
Len,
I have read your article and it seems to me that you and some of these people who chose to reply have lost sight of the whole point of these programs. It is meant to get customers to FREQUENT their establishments not to just hand out free nights stays to everyone in the country that has stayed a few times over a long drawn out period. That is to say that these companies owe you nothing but the product you purchased. When you signed up for the REWARDS program you probably just scrolled to the bottom and checked the little accept box and didnt read the terms and conditions. While i respect your opinion and understand your frustration to an extent I can also side with the companies(Hilton) wanting to put an expiration on the FREE rewards. When you say you EARNED these things you really didnt. They are AWARDED to you for staying there with the intent that you come back and spend those points in an appropriate amount of time or purchase more services to demonstrate you LOYALTY.
You mention your primary loyalty. Well, forgive me but I dont believe Hilton has a Secondary Loyalty HHonors Program. They want you to choose them over Marriott. I have a lot of customers in my line of work and they are all afforded the same great service but my frequent customers and high dollar customers do get more of my attention. If they choose to go with someone else then they are still welcome to use my services but they really arent my LOYAL customers and the ones who are will then reap the benefits. Loyal refers to one person, belief, etc not stages or levels or BACK UPs. Beside look at the big picture is one stay at a Hilton in a YEAR really that much to ask for to keep the FREE nights you are accruing?
Nick
Fair enough, Nick. I realize companies only owe me the service I pay for, but … alienating customers with what comes down to a stay-with-us-100-percent-of-the-time-or-else policy still seems like an extremely short-sighted business strategy. The proof is in the pudding: instead of getting 20% of my business, they now get zero.
After all, they aren’t losing money on the program. Less frequent customers like me still have to stay the same number of nights to earn rewards as people who give all their business to Hilton. It just takes us longer!
PS still enjoy reading your articles even if we dont see eye to eye on this topic.
Hey … we can always agree to disagree!
I just found out that I lost over 150,000 points from Hilton HHonors. I don’t ever want to stay in another one of the Hotels in this program. I was not even aware that they expired. Not a happy person!
It really is criminal Nancy. I’m sorry to hear about that. I have heard instances where you can appeal to get your points back. Have you tried emailing Hilton and asking if they will reinstate your points?
Glad to see your blog. I just discovered that I lost 98,000 aeroplan points that I have been collecting for many years.
The really sad part is that I thought I was keeping things active but recently my points were not getting through.
How can something you’ve earned be taken away? Is there not a Better Business clause that protects us from this? I remember when gift certificates started printing expiring dates there was an uproar and now that certain injustice is no longer tolerated.
Come one Len, let’s do something about this.
You have my sympathy, Thom.
Unfortunately, these airlines and hotels are free to change the rules as they see fit.
Our only real defense is to not patronize them.
Gift cards are credits you have purchase while rewards points are gifted/awarded. These companies owe you nothing if you choose not to abide by the terms and conditions you “said” you read.
I just got off the phone with Hilton…I sold a company and haven’t traveled much lately, took on a CEO role and I’m cranking it up again. Like you Hilton is my secondary choice, but I’ve still have (had) 500K plus points. When I logged in today it was zero. They said they would make a decision on reinstating points within 10 days. I told them (and do mean it) that if I don’t get them reinstated I will never stay at a Hilton property again.
This is an update to my previous post; Hilton just sent me an email and DID reinstate my points. I was very specific over the phone that I would never stay at a property again, but was nervous that I had so many points they might still enforce the penalty. But they said in the email all 590K points would be reinstated and when I went on the site they were. While I wish the policy was different, at least they came though. Unlike some of the other comments, they didn’t require any short-term commitments, just reinforced the fact that I need to stay at a Hilton once a year.
Thanks for the update, Gary. That is great to know!
[...] Friendly Warning: When Reward Points Expire, So Does My Loyalty: You’ve racked up those rewards points — shouldn’t you be able to use them anytime? Len Penzo from Len Penzo dot Com takes a look at rewards programs, and how inactivity can lead to you losing your hard-earned rewards points. [...]