Temporary 50% reduction in the Hilton Honors Points conversion ratios [REDUCTION LIFTED A/O JAN 1, 2021] [MERGED]

[natarajanv]

Hilton Conversion Ratios
Saving this unprecedent number of ClubPoints for free for so many of you creates increased challenges for HGV. In consideration of this and the need to mitigate some of the impact from COVID-19, there will be a temporary 50% reduction in the Hilton Honors Points conversion ratios. This includes 2020 ClubPoints used toward a Hilton hotel reservation, and 2020 and 2021 ClubPoints converted to Hilton Honors Points. Please know this is a temporary adjustment – we plan to reinstate the full conversion ratio in 2021.

 

[PigsDad]

It was seldom a good deal before, and even less so now. Won't affect me, as I never convert my HGVC points to Honors.

Kurt

 

[Cyberc]

It was seldom a good deal before, and even less so now. Won't affect me, as I never convert my HGVC points to Honors.

Kurt

I agree. For the past many years it wasn’t a good deal and now it’s even worse.

 

[brp]

When I read this title, I thought it was not really worded correctly, but really mean that it was the other way, i.e. 50% of the HGVC points for a given number of HHonors points, i.e. a doubling of the ratio. Seems to me that they would want to encourage folks to move HGVC points to HHonors to reduce the future burden on HGVC with a currency that is spread over many more locations. This seems backwards to me.

Cheers.

 

[kanerf]

I will do like I am doing with my DVC points, get larger or more expensive rooms next year than I normally would to use up the extra points that I will have.

 

[brp]

I will do like I am doing with my DVC points, get larger or more expensive rooms next year than I normally would to use up the extra points that I will have.

We even did that this year with DVC as we always have a few more points than we need. Got a 1BR instead of studio. Usually we get a 2BR, and family comes, but not this year. Then sister-in-law decided to come after all...and we have room

We have trips planned to use all DVC points this year. HGVC, not so much...

Cheers.

 

[buzglyd]

When I read this title, I thought it was not really worded correctly, but really mean that it was the other way, i.e. 50% of the HGVC points for a given number of HHonors points, i.e. a doubling of the ratio. Seems to me that they would want to encourage folks to move HGVC points to HHonors to reduce the future burden on HGVC with a currency that is spread over many more locations. This seems backwards to me.

Cheers.

I think they probably have to buy those points from Hilton and are probably a little short on the cash side offering all the fee discounts and waivers not to mention the reduction in sales do to the [offensive term for Coronavirus removed <-- SueDonJ].

 

[brp]

Interestingly, this is a coronavirus, and not at all a flu.

Cheers.

 

[PigsDad]

When I read this title, I thought it was not really worded correctly, but really mean that it was the other way, i.e. 50% of the HGVC points for a given number of HHonors points, i.e. a doubling of the ratio. Seems to me that they would want to encourage folks to move HGVC points to HHonors to reduce the future burden on HGVC with a currency that is spread over many more locations. This seems backwards to me.

My take is that this is probably coming as a result of pressure from Hilton. Think about it -- Hilton probably has gotten burned in the last few months on the inventory that HGV had allocated to Hilton. Many of HGV resorts have been closed, so Hilton has not been able to sell that inventory -- I'm sure they've taken a bath financially when they were expecting to rake in significant income this summer from popular places like HHV where they can command premium cash prices.

Kurt

 

[Wright17s]

HGV has to pay Hilton to "purchase" the points upon conversion... this snippet is from their 2018 annual report ( can't find the 2019 on their investor website ). It's noteworthy the amount of $ HGV paid Hilton for HHonors points in 2018 and 2017 ( $56m and $59m respectively ). I'm sure the decreased ratio is because they can't afford to pay for a mass exodus of point conversions given the current environment.

 

[dayooper]

My take is that this is probably coming as a result of pressure from Hilton. Think about it -- Hilton probably has gotten burned in the last few months on the inventory that HGV had allocated to Hilton. Many of HGV resorts have been closed, so Hilton has not been able to sell that inventory -- I'm sure they've taken a bath financially when they were expecting to rake in significant income this summer from popular places like HHV where they can command premium cash prices.

Kurt

This. They have so many rooms not being booked, they don’t need more rooms from HGVC just sitting there. Then throw in the glut of points being converted and used, potentially years from now, when they didn’t book the rooms they were exchanged for.

 

[GT75]

I rather Hilton and HGV do this than devalue my existing Hilton Honors points (especially since I won't utilize this option).

 

[Sebastiantheibis]

BAIT AND SWITCH
AS A W57th OWNER, 50% Redction in HH points is not what I agreed to when purchasing in NEW YORK with its higher price and maintenance fees.
HGVC is using the pandemic as an a excuse to RIP OFF WEST 57th owners.
Time for a class action against HGVC.

My take is that this is probably coming as a result of pressure from Hilton. Think about it -- Hilton probably has gotten burned in the last few months on the inventory that HGV had allocated to Hilton. Many of HGV resorts have been closed, so Hilton has not been able to sell that inventory -- I'm sure they've taken a bath financially when they were expecting to rake in significant income this summer from popular places like HHV where they can command premium cash prices.

Kurt

 

[Sebastiantheibis]

It was seldom a good deal before, and even less so now. Won't affect me, as I never convert my HGVC points to Honors.

Kurt

BAIT SND SWITCH
HGVC is ripping off W57th owners

 

[PigsDad]

BAIT SND SWITCH
HGVC is ripping off W57th owners

Umm, it's a 50% reduction for all owners, not just W57th owners. Yes, it sucks, but it is clearly in the terms of service that HGV can change the program rules at any time. The only thing your deed entitles you to is what you own, not the club perks. We all knew those risks when signing on the dotted line, and if we didn't, it just means we didn't read and/or understand what we were signing. I'm not defending what HGV is doing, but just pointing out it is a risk we all take. That's life.

Kurt

 

[Talent312]

I understand why those who've used the 50:1 ratio at HC resorts would be ticked.
When HGVC and Hilton Worldwide became separate entities, the HH tie-in was on thin-ice.
I suspect that, If HGVC is acquired by a 3rd party, it could disappear entirely.
.

 

[Sebastiantheibis]

I understand why those who've used the 50:1 ratio at HC resorts would be ticked.
When HGVC and Hilton Worldwide became separate entities, the HH tie-in was on thin-ice.
I suspect that, If HGVC is acquired by a 3rd party, it could disappear entirely.
.

HGVC uses the 50:1 ratio to entice and convince consumers to buy into the over priced units.
HGVC represents that the 50:1 conversion is a material value of the purchase
This is likely illegal as it is not in the terms
DO NOT BUY HGVC

 

[tombanjo]

I guess you're right, it would be better to go bankrupt and everyone lose their investment than to cut a "perk" during this time when hotels and businesses are closing left and right. I think you should demand HGVC plays strictly by the rules, 2019 points are to be used in 2019, or they go poof, 2020 points are to be used in 2020 or they go poof. Everyone has an opportunity to use their points, places are open for business, so stick by the rules !!!

 

[SmithOp]

HGVC uses the 50:1 ratio to entice and convince consumers to buy into the over priced units.
HGVC represents that the 50:1 conversion is a material value of the purchase
This is likely illegal as it is not in the terms
DO NOT BUY HGVC

Calm down, verbal commitments aren’t binding, no basis for a lawsuit.

Its temporary, we are all suffering the effects of this pandemic.


Sent from my iPad using Tapatalk Pro

 

[Tamaradarann]

I guess you're right, it would be better to go bankrupt and everyone lose their investment than to cut a "perk" during this time when hotels and businesses are closing left and right. I think you should demand HGVC plays strictly by the rules, 2019 points are to be used in 2019, or they go poof, 2020 points are to be used in 2020 or they go poof. Everyone has an opportunity to use their points, places are open for business, so stick by the rules !!!

This Virus has been bad for everyone. Businesses, people who are furloughed by businesses, and, of course, those who get very ill or die and those that are close to them have been hurt the most. Hotel and Timeshares who have so many empty rooms during this period should step up and relize that people are not coming to their accommodation because they are closed, prevented by travel restrictions, or a afraid. Therefore, to get people going again in the near future they should be as accomodating as they can be.

 

[bobbi_1217]

The email is a bit confusing, "and 2020 and 2021 ClubPoints converted to Hilton Honors Points. Please know this is a temporary adjustment – we plan to reinstate the full conversion ratio in 2021". It states this affects 2020 AND 2021 club points but also states they plan to reinstate the conversion rate in 2021. Are they saying that they will reinstate in 2021 but only for 2022 and on?

 

[SmithOp]

The email is a bit confusing, "and 2020 and 2021 ClubPoints converted to Hilton Honors Points. Please know this is a temporary adjustment – we plan to reinstate the full conversion ratio in 2021". It states this affects 2020 AND 2021 club points but also states they plan to reinstate the conversion rate in 2021. Are they saying that they will reinstate in 2021 but only for 2022 and on?

Correct.

Convert future year points (2021) was 25:1 or 50:1 for bHC.

Convert current year points (2020) was 20:1.

So in January converting future year will be 2022 points.

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[Pathways]

HGVC uses the 50:1 ratio to entice and convince consumers to buy into the over priced units.
HGVC represents that the 50:1 conversion is a material value of the purchase
This is likely illegal as it is not in the terms
DO NOT BUY HGVC

Seriously? Do not buy HGVC? They are one of the best of the top tier.

Sales uses MANY hooks to entice - anyone who buys based on a conversion that can be DISCONTINUED at any time is simply not doing their due-diligence.

And their announcement commits to reinstating the higher rate sometime in 2021, which means no one really losses anything, just a delay.

Sebastiantheibis - I have a suggestion. Offer to give up the extra points banking/saving that HGVC gave owners in exchange for re-instating the full conversion value. My bet is 95% of owners would say - 'we don't care about the 50% reduction.

It's really very simple, they allowed everyone to save points that would have been lost, but they want them used for their original purpose - HGVC rooms. Any conversion to HH points costs HGVC cash - not good during a pandemic.

I agree completely and support their decision.

 

[GT75]

Honestly, I think that HGVC has been very fair in dealing with its owners (allowing cancellations/waving fees to save points). They could have taken a much different tack. I think that @Wright17s (link) gave the reasons why HGVC is reducing Hilton Honors points temporarily by 50%. (JMO).

 

[brp]

HGVC uses the 50:1 ratio to entice and convince consumers to buy into the over priced units.
HGVC represents that the 50:1 conversion is a material value of the purchase
This is likely illegal as it is not in the terms
DO NOT BUY HGVC

Wow, I hope you're kidding. If anything that was said to you by a salesweasel is what convinced you to buy, then you really have no one to blame but yourself. Sorry, sounds harsh, but it's the truth. What's in the contract os all you purchased.

It is quite reasonable to buy HGVC if one goes in with eyes open and knows that they're actually getting.

Besides, at any ratio doing the conversion is a sucker bet.

Cheers.