insiderblmIt might be difficult to navigate hotel rewards schemes. It’s easy to become overwhelmed by everything from point-earning promotions to elite status upgrades and thousands of other criteria. Yet, for the majority of passengers, it all comes down to two simple factors:
- For every dollar spent, how many points do you gain in a hotel loyalty program?
- How much are these points worth?
That is, if you receive one point for every dollar spent at a hotel, and each point is worth one cent, you will be rewarded one penny for every dollar (1%) spent. By reducing it to a single number, we can compare hotel rewards programs side by side and see which ones offer the best — and worst — value.
If this is starting to feel like a stressful math problem, don’t worry. NerdWallet crunched the statistics to see which hotel loyalty programs give you the most bang for your dollars.
We gathered and analyzed hundreds of real-world room rates to evaluate the value of each hotel brand’s rewards points, then computed each program’s rewards rate (the amount of rewards you earn per dollar spent). This rate can assist you in determining the most beneficial hotel rewards programs. It also provided us a fresh perspective on which hotel in 2022 offers the finest loyalty program.
The ranks are as follows:
Because these rankings are based on data, we never know how they will turn out until the final spreadsheet is tabulated. As a result, the ultimate results astound us as much as they do anyone else.
What exactly is going on here? In other words, if you spend $100 at a Radisson hotel, you will receive approximately $12 in rewards points. If you use the points, that’s a pretty excellent deal. On the other hand, we estimate that if you spend $100 at a Hilton hotel, you will receive roughly $5 in incentives.
There are, of course, other significant elements to consider when selecting a hotel and its rewards program, such as elite status bonuses and hotel quality. Our rewards rate, on the other hand, provides a quick overview of which hotel businesses are genuinely providing good value on their primary reward product: points.
Taking a closer look at the most beneficial program
What was the secret to Radisson Rewards’ success this year? There are several causes for this. Most Radisson locations in the United States give a massive 20 points per dollar spent, significantly more than any competition. Radisson’s generous point-doling was previously offset by low point values, but this year’s value increased from 0.3 cent per point in 2020 to 0.6 cent per point in 2021.
In and of itself, this isn’t a great bargain per point when compared to, say, World of Hyatt’s 1.9 cents per point.
The aim of this analysis isn’t to see which hotel program offers the best combination of high-value currency and generous awarding of that currency; it’s to see which hotel program delivers great combination of increased currency as well as extensive awarding of that currency.
One thing to keep in mind: Radisson Rewards has lately been separated between its hotels in the Americas and those around the world. This analysis is only applicable to its Americas program.
Values of hotel points
The above rankings are for earning and using points in the usual sense – on hotel purchases. But what if you’re thinking about a point promotion or a credit card offer with a fixed number of points? Consider the difference between a campaign that rewards 100,000 Hyatt points and one that earns 100,000 Marriott points.
The raw value of various currencies varies, as seen by our constantly updated point and mile assessments.
| Hotel program | Point value |
|---|---|
| Best Western Rewards | 0.7 cent. |
| IHG Rewards | 0.8 cent. |
| Hilton Honors | 0.5 cent. |
| World of Hyatt | 1.9 cents. |
| Marriott Bonvoy | 0.7 cent. |
| Radisson Rewards | 0.6 cent. |
| Wyndham Rewards | 0.9 cent. |
Because hotel points have such a wide range of prices, you should calculate the true worth of any promotion by multiplying the aforementioned cent-per-point figures by the number of points you expect to receive.
This is just like any other currency; $150,000 is not the same as £150,000. Getting Hyatt points is considerably more valuable than earning Marriott points in the same amount of time.
The most important takeaways
It can be difficult to keep track of everything, especially if you’re new to the points and miles game. The gist is as follows:
In terms of the amount of value you may earn per dollar spent with the brand,
Radisson Rewards Americas is the most valued hotel rewards program.
World of Hyatt has the most valuable points as well as the second-best rewards rate.
Always convert promotional point bonuses to real money so that you may compare them.
These rewards values aren’t the only thing to think about when selecting a hotel loyalty program, but they’re an excellent place to start. The data suggest that companies like Radisson and Hyatt are willing to put their money — or at the very least their points — where their mouths are.
originally published on NerdWallet
