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During May and June 2019, Hilton Honors quietly started charging more points for standard room award nights at 1,000+ of its hotels. Not a single hotel now costs less! This is obviously the very reason why Hilton Honors got rid of award charts and started to take a more flexible approach to the pricing of award nights.
However, this award pricing strategy certainly hasn’t stopped Hilton Honors from continuing to sell points at 0.5 US cents each (0.4p). Details of the latest promotion can be found by clicking here.
For many years, my approach to the valuation of hotel points has been…
- How much do points cost during any consistently-repeated promotions?
- Can I find many hotels where I save money by simply buying points to then redeem on “free” award nights?
If the answer to question 2 is “yes”, then I am quite happy to base my points valuation on the promotion price. In the case of Hilton Honors this has been 0.5 US cents since 2013 or 2014. (0.4p if you really need to think in terms of sterling, but of course this would move around with the exchange rate)
Where are the Sweetspots?
Quick!!! Think of a hotel costing 20,000 points or less than provides really good value at 0.5 cents / 0.4p per point. I can’t think of too many…
- Hilton Garden Inn, Bali Airport at 5,000 points per night. You wouldn’t want to spend more than your first or last night near the airport, but the hotel is fine.
- Hampton Inn, Krakow Poland at 10,000 points per night.
- Doubletree Penang Malaysia at 10,000 points per night. I wrote about this hotel recently, although paid rates aren’t actually expensive in the first place…
That’s about it. Of course there are many more hotels that can provide reasonable value, but only if you happen to need that specific hotel on a high-demand date.
Otherwise you’re going to see a whole lot of this…
What About More Expensive Hotels?
It is certainly plausible that Hilton Honors could only provide value these days at the higher end. Perhaps you need a hotel in central London for the August bank holiday weekend…
But You Cheated and Skipped the Fifth Night Free Benefit
I did indeed… and perhaps the only way to get more than 0.4p / 0.5 cents on a regular basis is to stay in five night chunks. But I ask you this… How many 5-night “weekends” have you managed lately? Or only stayed five nights in a hotel during a week-long holiday?
Yes there’s value from staying only five nights, but it’s not all that straightforward to arrange…
Reducing my Valuation of a Hilton Honors Point
Would I buy Hilton Honors points these days at 0.5 US cents each? Not unless I had a specific five-night stay in mind. Otherwise it’s simply too tough to convert those points into hotel stays that would otherwise cost more.
And if I’m not willing to buy Honors points at that price, what should I do when analysing the value of any Hilton Honors points I might earn as part of a paid hotel stay? Well… I should reduce my valuation… and based on quite a few data points I think I can justify a valuation of 0.4 US cents each. (0.32p)
Once you make that adjustment, something quite surprising then becomes apparent. However I’ll cover that in a future post. But for now, I’ll open it to the group… what do you think a Hilton Honors point is worth? Let us know in the comments section.