- Rewards programs devalued since 2020.
- Travellers’ savings may fall short.
- Regulations and probes arise amidst consumer complaints.
- Workers face increased pressure from cutbacks.
UNITE HERE, the hotel workers union, has introduced Hotel Disloyalty, a platform highlighting the diminishing value of rewards programmes at major hotel chains such as Marriott, Hilton, and Hyatt. Since 2020, these loyalty schemes have experienced significant downgrades, leaving many loyal guests with insufficient points for long-planned getaways or noticing reduced services. The union is actively researching customer feedback through digital media to determine how these changes have impacted them and to inform potential new members of the realities.
Hotel Disloyalty Evidence and Analysis
HotelDisloyalty.org gathers insights from travel and financial experts, revealing a consistent devaluation of hotel reward schemes since 2020 despite rising room rates. For example:
- Marriott’s Bonvoy points decreased by 33% from 2019 to 2023.
- Hilton’s program is 37.5% less valuable than Marriott’s.
What is especially frustrating for consumers is that these adjustments happened with minimal or no advance notice. Even higher-tier members and credit cardholders have seen reductions in their benefits.
The decline in reward schemes is part of broader operational changes in hotels since 2020. For instance, staffing per occupied room fell by 13% between 2019 and 2022, as many establishments continued cost-saving measures during the COVID period. These measures include less frequent housekeeping and fewer dining options, leading to job losses and added stress for the remaining staff.
Regulatory Concerns and Comparisons
Concerns about the devaluation of these programmes have reached federal regulators. The Consumer Finance Protection Bureau (CFPB) received 1,200 related complaints in 2023 and, together with the Department of Transportation (DOT), considered additional regulation in May 2024. The DOT also began examining airline rewards in September 2024.
Beyond devaluation concerns, HotelDisloyalty.org also contrasts hotel loyalty programmes unfavourably against airlines. Analysis shows that hotel loyalty points generally hold less value than airline points.
In summary, these resourceful insights underscore the importance of evaluating loyalty schemes critically, encouraging travellers to make informed decisions when choosing between hotel and airline programmes.
