Brief Summary
This video discusses the rise and fall of the Marriott Bonvoy program, comparing it to its predecessor, SPG, and competitors like Hyatt and Hilton. It covers the program's golden era post-merger, the introduction of Bonvoy, the shift to dynamic pricing, and the devaluation of elite status benefits. The video also touches on the "secret" award chart and whether the new prices still make sense, ultimately questioning the value proposition of Bonvoy for aspirational travel compared to other programs.
- SPG was the gold standard before the merger, offering better value and benefits.
- The Bonvoy program has seen a decline due to dynamic pricing, reduced benefits, and increased point costs.
- Elite status within Bonvoy has diminished in value due to overcrowding and inconsistent upgrade policies.
- Despite the changes, there are still some scenarios where Bonvoy points can be valuable, but alternatives like Hyatt and Hilton offer better value and experiences.
Intro
The video introduces the topic of the Marriott Bonvoy program, highlighting its decline over the past decade. Once considered one of the best point systems, it has faced significant devaluation. The video aims to explore the rise and fall of the Bonvoy program, examining how it has changed and whether its cards still offer value, especially for those interested in premium travel.
Before 2016 (SPG vs. Marriott - before the merger)
Before 2016, SPG (Starwood Preferred Guest) was considered the gold standard for hotel loyalty programs, particularly among credit card and points enthusiasts. SPG points were valued at 2.5 to 3 cents per point, with high earn rates from their cards, offering up to 3x points at SPG properties and 1x on everything else. SPG provided better benefits, redemptions, and fewer points in the ecosystem, leading to more availability. SPG also had a stable and predictable reward chart with no hidden fees on award stays, including waived resort fees. SPG Platinum status, obtainable after 25 stays or 50 nights, offered upgrades to the best available rooms, including standard suites, guaranteed 4 p.m. late checkout, and lounge access or breakfast at most brands. SPG points could be transferred to airlines at a 1:1 rate with a 5,000-mile bonus for every 20,000 points transferred, making it a valuable option for airline miles. In contrast, Marriott was considered good but not great, with a larger footprint but less aspirational hotels outside of Ritz-Carlton.
2016-2018 (Post-Merger)
Marriott's acquisition of Starwood was finalized in September 2016, and initially, the programs remained separate but linked, allowing status matching and point transfers at a 1:3 ratio (SPG to Marriott). This period was considered a golden era, as members could capitalize on benefits from both programs. Marriott status holders could match to SPG for upgrades, while those with SPG points could transfer to Marriott for packages. The merger created the world's largest hotel portfolio, offering more earning and redemption opportunities. In August 2018, Marriott Rewards, SPG, and Ritz-Carlton Rewards combined into a unified system, which led to technical issues like missing reservations and login problems. A unified award chart was introduced, ranging from Category 1 to 8, with a temporary cap at Category 7, allowing bookings at top hotels for 60,000 points per night.
BONVOY (2019-2022)
In early 2019, Marriott introduced the Bonvoy program, marking a turning point. Category 8 was introduced, increasing the cost for top properties to 85,000 points per night. Technicalities and limitations emerged, with hotels limiting the number of standard rooms available for redemption. Upgrades became harder to obtain, and card limitations increased, making it more difficult to accumulate points. Using the St. Regis Maldives as an example, the cost was 85,000 points per night, or 340,000 points for five nights with the fifth night free, equating to 68,000 Bonvoy points per night. In September 2019, Marriott introduced peak pricing, with off-peak, standard, and peak rates, affecting point costs.
Downfall (2022-now)
In 2022, Marriott transitioned from award charts to dynamic pricing, allowing prices to fluctuate based on market dynamics. This change made it harder to predict costs, and even during off-season, prices did not decrease significantly. The goal was to find sub-100K nights, utilizing cards that offered 85K certificates with a 15K point top-off. Recently, Marriott increased award costs, with top properties now costing 150,000 to almost 200,000 points, making the 85K certificate less viable.
NEW "Secret / Hidden / Backend" Award Chart
Marriott technically still operates with an award chart, but it is not publicly disclosed. Instead of set prices, there are bands with a top and bottom range. For example, Category 1 ranges from 5,000 to 16,000 points, while Category 9 ranges from 88,000 to 152,000 points. Category 9 also has subcategories, such as 9A, which includes St. Regis and Ritz-Carlton Maldives. Finding five nights at the bottom band pricing is rare, but even then, it would cost 432,000 Bonvoy points, or 86,400 points per night. The top band is almost non-viable due to its high cost.
Why New Prices (Technically) Make Sense Still
Despite the high point costs, the math technically still works out. For example, the St. Regis Maldives costs about $2,500 per night during peak season. Using the top band pricing of 198,000 points, the value is 1.3 cents per point, which is still good compared to the target of 0.8 to 1 cent per point. During the low season, the value is even higher at 1.5 cents per point. However, these redemptions are difficult to obtain for most people, as they require a significant number of points.
Bonvoy vs. Hyatt and Hilton
Transferring points to Bonvoy from other transferable currencies rarely makes sense, especially when you can get 1.5 cents per point through portals or other programs. Transferring to Hyatt or Hilton often provides better value. For example, 1,000 bank points could become 1,000 Bonvoy points, 1,000 Hyatt points, or 2,000 Hilton points. The Park Hyatt Maldives, while a step down from St. Regis, still offers a nice experience at half the retail price and lower point costs. Hilton's Conrad Maldives also offers similar pricing, but requires diligent searching for standard room availability.
The Problem with Bonvoy's Elite Status (Lack of Upgrades / Questionable Breakfast)
Elite status within Bonvoy has diminished in value due to the program's large membership base, making upgrades harder to obtain. Hotels often play games and interpret rules differently, and some hotel operators are reluctant to provide upgrades. Breakfast benefits are also convoluted, varying by brand and region, with some brands offering food and beverage credits instead of breakfast.
Outro
The video concludes by acknowledging that while Marriott hotels are generally solid, the award program has declined, and the glory days of outsized value are over. The speaker still holds the cards and enjoys elite status but is more bullish on Hilton and Hyatt for upside and value.
