I was getting ready to write a scathing post about Starwood Preferred Guest’s point levels for the coming year, but Gary Leff has beaten me to it. I’ll just add to the chorus:

Hotel-point redemption rates vary, based on the “tiers” of the property. And those tiers are tied to the average room rate at the property. Roadside motel? Low tier. Ultra-luxe resort? Upper tier. Seems straightforward.

And when the rates go up, the tier typically goes up, and the points required for a reward room go up, too. But when the rates go down, the tier typically goes down too. (This is perhaps how hotel points differ most from airline miles.)

Except this year. Starwood left its tiers where they were for the coming year, despite hotel rates’ incredibly deflationary record this past year. And then they try to spin it as a great thing they’re doing for their customers. It’s like telling an American traveler to Europe that you’ll cut them a great deal by charging him the USD-EUR exchange rate from December 2009 on a visit in February 2010… when the euro has dropped from 1.50 to 1.35. Gee, thanks.

Pitching it over to Gary:

Rates were down close to 20%, Starwood members expected points prices to fall, too. But Starwood apparently had other plans, and tried to spin not raising prices as a huge win for members. ‘We expect hotel prices to go up, but we aren’t going to sock you for that now. Because we love you.’
[...]
Some of [last year's] increases should have been reversed — based on the value proposition as Starwood has articulated it — after the worst hotel revenue year ever. But they weren’t. Starwood Preferred Guest is swallowing the difference. And telling you to thank them for it.

Starwood still has a large number of lovely properties, place I actually want to redeem to be at. But their points are relatively hard to earn through stays, and those points are worth less as hotel points prices remain the same but rates have fallen. They seem to be taking the wrong competitive approach, when Hyatt seems to be doing nothing but adding value to its program.

Amen.

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