Executive Travel SkyGuide

ON BOARD WITH RANDY PETERSEN

HHONORS POINTS OR MILES?
March 2004
by Randy Petersen

Question:
What do you think about the Hilton HHonors points and miles? They are offering double points and no miles right now. I have a different situation than most. My husband stays in a south Louisiana town with only a Hampton, so that limits me and there is no air travel involved, except for pleasure. I just signed up for the double points. Let me know.

Answer:
After testing with their elite members, HHonors last year opened the concept up to general members and has now renewed this offer to all members throughout 2004. I personally have done the same as you: I've opted to earn 15 points per dollar spent when staying at Hiltons—taking the points rather than the miles. But honestly, this isn't a decision that's right for everyone.

Generally speaking, I've advised those who have lots of air travel and frequent flyer credit cards to make the change to earning the 50-percent bonus points, rather than the extra airline miles. The idea being that you have other easy access to airline miles, but likely fewer opportunities to make the hotel opportunities work for you. Alternatively, if you are a member who has far more hotel stays than flights, I would advise you to take the miles, since you have plenty of points.

Here's the math: Let's say you stay three nights at a Hilton with a daily rate of $147. In the current scenario you would earn 1,470 HHonors points, as well as 500 airline miles. If you chose the 15 points-per-dollar option, you would end up with 2,205 HHonors points and no miles. Now, down the road if you find you have a need for 500 miles you could transfer points to miles with the Reward Exchange option from HHonors. But be aware, you'll actually need a minimum of 10,000 points to convert to miles, you'll find that major programs such as Delta, Continental, United and US Airways are no longer available options, and you will likely be severely disappointed in the conversion rate.

In effect, it would take 3,333 points to earn 500 miles. That's more than the total number of points you earned in the hypothetical stay. On the other hand, if you take all the points all the time, in effect you will be earning hotel awards at a 33 percent discount.

From my point of view, I think it much easier to earn miles from other sources than it is to earn hotel rewards at a 33 percent discount.

At the end of the day, it's all about personal choice, but it looks like you and I value points more than airline miles and perhaps this example will help others with their choices as well.

Thanks for the question and for allowing me to prove you right.

You can contact Randy Petersen at randy@insideflyer.com.