Think Ben Bernanke is bad? He’s not the only one with a huge future liabilities and in inability to resist the temptation to devalue his currency.
A similar phenomenon is playing out in the world of air and hotel loyalty points.
4Hotels has the latest on a “currency” battle between Hilton (HHonors) and rival IHG.
See, back in January, HHonors, effectively devalued their loyalty points by 20%, infuriating longtime customers.
Now IHG is going in for the kill:
The incredible overhang of that liability is just mind boggling. However consumer behaviour being what it is. People tend to hoard their points. While people are prepared to go to debt on their credit cards – they dont use up their FF miles. And yes I am guilty of this. (not the credit card debt thing BTW).
Anyway – Hilton and IHG are getting into it. IHG’s Priority Club is going after the devaluation of HHONORs points by about 20%. They are offering you at least 1000 points in return for giving them the status on your position with HH. So I did just that. Its a bit sneaky but for a free 1000 points and a chance at 2 million – why not?
Frankly it wasn’t enough really but I wanted to see what they would do for me.
From my point of view I was already ticked off at Hilton and therefore I stopped using them this year. My “disloyalty” is not that religious. I always chose a hotel based on location. Only if they are directly competitive (rates and location) does FF miles and points ever really make a difference to me.
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