No purpose in exchanging for points anymore!

[Hoc]

I'm actually a little surprised at the rate for purchase. For years now, I've been saying that Marriott points were worth about a penny a point. That is why I've always said that purchasing a timeshare from Marriott for $20k-plus (now closer to $30-$40k), merely to get around $2k worth of points, and the right to trade your unit in for around $1,000 worth of points every other year for a $1,000 annual maintenance fee plus a surcharge did not make sense. Especially when you could buy the same unit resale for about $8-$10k (now closer to $10-15k) without points.

What surprises me is that this is the first time I have seen Marriott sell something without a "greed premium." This is not Marriott-type behavior. My guess is that they will be devaluing the points soon, and you can expect the number of points needed to get travel packages and the like to go up by maybe as much as 25-30 percent in the next year or so.

For now, I might actually buy some points and trade them in, because it seems like a fair price, and I like the concept of getting a first class ticket using miles to Europe or Asia (worth around $1,500) plus a week at a Marriott hotel (worth around $1,100), plus enough miles to make me lifetime Platinum with American Airlines, all for $2,500. Just be aware that if you take advantage of this deal, you need to do the trade in quickly, as the points values for the trade-ins likely will be going up soon, or additional limitations will be imposed on the use of the points (one of each type of award a year, available during low season only, or something of the type).

 

[Dave M]

I agree with your post, Hoc, except for the need to trade for awards quickly. Every single frequent-flyer and frequent-stay program that has made changes to their program since the landmark AA court case has given significant advance notice before implementing the new award structure.

In Marriott's case, the most significant change was in about 2001-2002 when the old 200k points "world trip" was done away with in favor of the new travel packages. We were able to claim the old world trips for a full three or four months after their demise was announced. Those old awards could be used for up to a year after the new award structure was implemented.

Most of the major airlines have had similar devaluations within the past year. My favorite, UA, gave a full six months advance notice before implementing the devalued award structure in October.

To do anything other than give such advance notice invites expensive lawsuits that Marriott (or other travel companies) would almost certainly lose - again, based on the AA case.

The single exception to that advance notice would relate to changes in categories for hotels. If you know you want to stay at a particular hotel, it's a good idea to make that reservation and get the award for it. If you do, you'll be able to use your award, even if the hotel is moved up a category before your stay. Otherwise, a change in category, which probably would not be announced in advance, could cost you additional points for that stay.