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 the day 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% 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
(This is an updated version of an article that was originally published on July 1, 2012)
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.
Write a letter to appeal? Who the heck has time for that?
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!
The rewards program are geared to toward consultants that travel, same with airlines – but airline programs are worthless as travel miles (priority screening/boarding and to a lesser extent free upgrades make airline rewards very much worth it). I liked Marriott rewards better, but hotel reward are great for frequent travelers – you can actually use them and they accrue fast.
Hi,
I have been following your blog but I was not aware you are into this loyalty miles/points game. And for some of us who have been doing it for 20 years it is still a game, how to screw the blood sucking banks to allow us to travel for (close to) Free!
You do have a legitimate point to make but this is hardly up there with other more hurtful sins in this game: The ever decreasing award availability, the criminal fuel surcharges (especially at these low fuel prices!), the fees galore, the ongoing devaluations (Hilton HHonors had a REALLY bad one two years or so ago). I could go on but you get the point.
I use Award Wallet to keep track of the expiring point but these guys lately have turned into credit card pumpers.
I really enjoy your blog and have several times linked to you from my regular twitter account. I am in the financial services industry but at night I morph into a travel hacker 🙂
Cheers!
I’m all for screwing the blood sucking banks, Buzz. And thanks for the links!
Yeah,Delta FF miles don’t expire but it’s well known that their program is the absolute worst when you try to redeem.
The expiring airline miles. I’m sure there are many that have accumulated 100k+ miles, but with a retirement or job change don’t travel so often. On American, you lose the miles after 18 months.
I flew over a million miles and am permanent gold status, no expiration. My wife and daughter will lose theirs, unless we (a) travel, (b) buy miles, (c) donate 1000 or more miles to charity, or (d) redeem miles for hotel, car rental, or the cheapest, a magazine subscription, usually 500-800 miles. This is a pain, but worth it to not lose my wife’s 80K or so miles.
Dear Joe Taxpayer, This is a simple, cheap fix. Have wife and daughter each sign up for American dining for miles club. Each person uses her own credit card and has her own account which is linked to the American Airlines frequent flyer account. Once a year, wife and daughter go to a coffee shop together, have a sandwich and beverage each, AND GET SEPARATE CHECKS which they each pay with their registered dining card. VOILA! The dining miles credited to the American Airlines program, no matter how few, keep each American airlines frequent flyer account active for another year. Have the ladies make it an annual tradition so it doesn’t get forgotten, maybe going for breakfast, or a snack during Christmas week. Problem solved painlessly.
IMPORTANT, FORGOT TO MENTION THAT YOU MUST GO TO A RESTAURANT / FOOD ESTABLISHMENT ON THE LIST AT THE DINING WEBSITE, A PARTICIPATING RESTAURANT! Can’t be just any restaurant!
I got a kerig coffee maker with my Coke points and it was well worth it.