# Pending 25% Devaluation of Starpoints



## DeniseM (May 7, 2006)

There is a long thread on FlyerTalk.com about a survey that Starwood has sent out to SPG members about a pending devaluation of Starpoints.  If you have Starpoints sitting around, you might want to use them (make hotel reservations) or transfer them to air miles, before they're devalued.  

We use our Starpoints for free tix to Hawaii, so I transferred mine to Hawaiian Airlines.  Once they are converted to Hawaii Air Miles, they won't be affected by any moves Starwood makes.  Note that you get 25K airmiles for transferring 20K Starpoints, so you want to transfer in units of 20K if you can.  I transferred 40K Starpoints and will hold on to the other 12K in the account until it reaches 20K.

Here's the thread:
http://www.flyertalk.com/forum/showthread.php?t=555179


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## grgs (May 7, 2006)

Denise, 

Thanks for the heads up!  How difficult is it to get airline tickets with FF miles?  I never tried since I always hear how difficult it is to redeem them.  But I am sitting on about 120K starpoints, so it might be a good idea to transfer some to miles.  Realistically, how far in advance do you have to plan?

Glorian


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## Henry M. (May 7, 2006)

The difficulty to redeem FF miles depends on the airline, how far ahead you book your tickets and how flexible you are with your travel dates. I've been to Hawaii with my family 6 times (4 tickets each time, except the last time when I just needed 2) and have never purchased a ticket. It's all been FF on American Airlines between Austin, TX and Maui, Kona and Honolulu. I've also redeemed tickets to go to Belize and Guatemala with no problems.


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## DeniseM (May 7, 2006)

FF seats are usually available 331 days out.


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## chrisfromOC (May 7, 2006)

Denise, any idea on when the devaluation is to take place?  I put FF tix on Hawaiian on hold for 4/1/07, but was waiting to transfer the miles in to my Hawaiian account until I confirm that I can get my return flights on the date I need.  However, I would consider doing it beforehand if Starwood is about to change the value of its points.

Thanks


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## DeniseM (May 8, 2006)

I don't think anyone knows - the link to the FT thread is in my original post if you want to check it out.

Let me just add, that at this point Starwood hasn't formally announced that Starpoints will be devalued, but they have sent out a survey to SPG members asking which method would be the "least painful," so the experts over at FlyerTalk (including Starwood Lurker who works for Starwood) feel that it is probably in the works.


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## skim118 (May 8, 2006)

I just finished reading the thread(thanks DeniseM) & like everyone I am very disappointed with Starwood.

The fact Starwood Lurker seems to confirm that a plan exists to devalue Starpoints indicates it is close to a done deal;  I am assuming Starwood will give us time until July 1 at least(optimistically until Dec 2006 ??).

Exchanging a 2-bed WKORV unit for 80,000 Starpoints would be as asinine idea if Starwood's future plan  whereby a Westin Maui hotel room would cost 30,000 Starpoints/nite, is implemented.

What kind of marketing toll will SVO incur when you exchange the ability to stay 2 weeks in WKORVN for not even 3 nights in a Westin Maui hotel room ?

Personally it does not affect us much since we never planned to exchange for Starpoints, except now we may cut down SPG Amex use even more.


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## stevens397 (May 8, 2006)

My understanding is a bit different (but I could certainly be wrong).  I don't believe there are any plans to adjust anyone's point total downwards.  Devaluing points simply means that a Category 4 hotel which now costs 10,000 points per night would be changed to around 12,500 points per night.  

You would still have the same number of points to transfer to airlines.  Of course, I certainly would not be surprised if they adjusted or eliminated the 5,000 point bonus.  To my knowledge, they're the only ones doing it.  While I certainly appreciate it, it's the wide range of airlines that means even more to me.  We're flying first class to Paris this summer on British Airways on points that were transferred to Cathay Pacific's Asia Miles, who charged  me approx 60% of the points BA wanted for the same itinerary!  I couldn't do this with my AMEX MR points.

The only thing certain is change and it is certainly going to come.  My Marriott points rarely go for more than a penny a point while I almost never exchange my Starpoints for less than 5 cents per point.  Starwood knows that their deal is costing them more than it has to and will make adjustments.  Then we'll each decide if we can live with it or if there's something better out there.


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## skim118 (May 8, 2006)

stevens397 said:
			
		

> My understanding is a bit different (but I could certainly be wrong).  I don't believe there are any plans to adjust anyone's point total downwards.  Devaluing points simply means that a Category 4 hotel which now costs 10,000 points per night would be changed to around 12,500 points per night.



I was referring to the so-called Cat 7 plan(trial balloon ?) to move popular hotels like Westin Maui into it.  Westin Maui peak Starpoint requirements have already jumped from 10,000 to 16,000 starting in 2006 & it would unfair to make it go even higher to 30,000/nt.

In any case we are happy as Starwood(HOT) shareholders and understand the economic reasons, but as SPG members we are not thrilled by the latest news.


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## djp (May 8, 2006)

Here is a fundamental question.....
Does starwood want it;s timehare owners to turen their week in for starpoints-is it an economic advantage to  them for us to do so, or do they simply offer this option as an incentive to help sell their timeshare. 

If they do really wnat us to at least consider turning our week in for points (as much as that is done now) then they will surely have to increase the conversion value.
If it is simply an incentive to buy their timehare and they dont  care if we use the option, then I imagine they will find other things to say to sell their timehares, or justbuild the best properties in desirable areas.

So the question- is it in starwoods interest for us to turn our week in for points, and if so, should we anticipate our conversion rate increasing?


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## DeniseM (May 8, 2006)

djp said:
			
		

> So the question- is it in starwoods interest for us to turn our week in for points, and if so, should we anticipate our conversion rate increasing?



I would never convert my timeshare week into points anyway, and it will become an even poorer value, if Starwood devalues the points 25%.  

I don't believe Starwood will increase the conversion rate for timeshare owners, either.  (Nor do most of the posters who addressed it on FlyerTalk.)

However, if they devalue the points 25% I will quit using my Starwood AMEX entirely and switch to a better credit card program.  We have a Hawaiian Air VISA as well, so I might just switch over to using it all the time.


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## stevens397 (May 8, 2006)

Denise-

It's all so personal.  You go to Hawaii every year, so the Hawaiian card would be a good move for you.  Two years ago I switched some usage to the Merrill + card and did well for a while - then the Ritz certificates became a major hassle and I moved on.  Some will decide Starwood is still worth it, others will find something else that, in the short run, works for them.

I was blessed for two years to have the Centurion card giving me Starwood Platinum, and the Starwood AMEX.  The combination gave me some extraordinary vacations in some magnificent suites.  Despite the complaints to Flyer Talk, I was 100% on suite upgrades - they were all vacations with my wife.  I'm incredibly upset that I'm losing Platinum status and also upset that my points will be worth less.  Just not sure what out there will be better.


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## Ken555 (May 9, 2006)

DeniseM said:
			
		

> However, if they devalue the points 25% I will quit using my Starwood AMEX entirely and switch to a better credit card program.



And to think I just received my Starwood AMEX last week! Sigh...

Well, I suspect a hotel cc is still a better idea than more miles.


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## rocky (May 9, 2006)

What this means to me is that I have to assume that overtime the 80K starpoints I got for my developer purchase will eventually be worth 3 nights at a Four Points Sheraton.  SO.  If I ever purchase again, it will be a resale for a mandatory resort.  The *BIG* reason to make a developer purchase will effectively have been negated.


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## stevens397 (May 9, 2006)

Rocky,

While many have argued back and forth about the flexibility of Starpoint conversion, your post hit the nail right on the head.  They are removing the remaining incentive for developer purchase of a mandatory resort.

Then again, I have enough anyway!


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## Kazakie (May 11, 2006)

*skeptical one*

I wouldn't be surprised if SPG changes their rewards/categories a bit (as many of us know - it really is too good to be true in many cases) - but the 25% across the board seems rather drastic.  

I hate to be the skeptical one, but as someone pointed out (either on TUG or FlyerTalk) it seems odd that Maui, St. John, etc would be specifically listed, since they just changed categories and aren't even the top category today.   Also it seems odd that Hilton is listed, especially since what Hilton HHonors did is very different than what the "survey" proposes. 

Something may be coming down the pipe, but I'm not sure how much credence I'd put on the validity of this survey - especially since no one else has raised their hand and said - I got this "survey" too!!


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## DeniseM (May 11, 2006)

*Re: skeptical one*



			
				Kazakie said:
			
		

> Something may be coming down the pipe, but I'm not sure how much credence I'd put on the validity of this survey - especially since no one else has raised their hand and said - I got this "survey" too!!



Starwood Lurker (who *works for Starwood*) posted in the thread on FT and he said that he expects devaluation of Starpoints to happen.  If the survey was a hoax, I don't think he would have posted the way he did.


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