Unused Points and Miles Can Be Big Business for Hotels & Airlines

United's MileagePlus program drives billions in revenue

There's a lot of chatter in the points and mile world regarding maximizing the value of the benefits we accrue from travel.  There are two primary actions that can cause the value of your miles and points to go to waste: expired miles/ points and frequent travel program mile/point devaluation (when the travel provider raises point levels required for the same type of redemption).  The first is in your control while the latter is subject to decisions by the loyalty program management teams.  In both cases, loyalty program member behavior and executive management decisions can have a big impact on travel provider profits, to the tune of billions of dollars.

To illustrate the magnitude of the impact that loyalty program point expiration and devaluations can have, let's look at an example form United Airline's 2013 annual report:

When you fly on United, a portion of the price you pay is put aside in a deferred revenue account.  Put simply, this means that rather than treating it that portion of the ticket price as revenue when you fly your ticketed flight, part of the revenue from the ticket has to be put aside to cover the future benefit United needs to deliver to you when you redeem the miles you earned from that flight.  As of the end of 2013, United had $4.9 billion in deferred revenue put aside in account for future redemption of Mileage Plus miles.

Monitor your miles & points online so they don't expire

United also discloses that they assume that a certain percentage of miles earned will expire before used.  As of the end of 2013, United assumed that 20% of miles would go unused.  For every one percent of total earned miles that go unused, United banks an additional $57 million in profits.  That means that because on average, those of us that have earned United MileagePlus miles let 20% of them go unused/ expired, United is able to recognize an additional $1.1 billion of profit from their loyalty program (note: this doesn't represent annual profit, but full benefit over the life of the current pool of outstanding earned miles).  That also means that if United increases the miles required to redeem the same award by 20%, they would also in theory generate $1.1 billion of additional profit.

United's 2013 Annual Report: Deferred revenue from frequent flyer miles & mileage expiration assumption

So, the bottom line is that mileage redemption, or lack of redemption, can be big business for airlines and hotels.  Make sure you do what you can so that 100% of the benefit of your points and miles earned ends up in your wallet rather than in the earnings reports of airlines and hotel.  Don't let your accrued points and miles end up in that 20% pool that goes unused before expiration.

Liberty Hotel Boston Review: 1,000 SPG Point Refund, Jail Theme Branding

From former prison to luxury hotel

Liberty Hotel in Boston is part of Starwood's Luxury Collection and captured my attention when I'd
learned it was a former jail turned luxury hotel.  It's located near a major medical center on the border of Boston's Beacon Hill neighborhood with easy access to public transportation and nearby Cambridge, MA.  We enjoyed our first visit in August 2014.

Front desk with free sparkling wine

For the stay, we redeemed 12,000 SPG points and also used a SPG Platinum Suite Night certificate, giving us a confirmed upgrade to a panoramic suite several days before check-in.  At check-in, we were informed that the manager refunded 1,000 points as a thank you for choosing the Liberty Hotel.  I've never seen a hotel do something like that before and felt it was a great gesture, especially since I've sometimes felt from other hotels that they dread accommodating guests staying on points.

Liberty Hotel's impressive lobby

We'd arrived early so our room wasn't yet ready.  I established myself in the lobby, which was an
impressive space appearing to be a central courtyard to the former jail with an incredibly high ceiling.  I overheard an interview being conducted and learned that the hotel has been consistently seeing 90% occupancy rates though the bar business has been a bit slower this season.  Given that, I was fortunate I'd been able to secure a room on points and the suite upgrade.

Panoramic suite views

The room was ready around 1pm and when we picked up our keys we were offered sparkling wine before we proceeded upstairs.  The panoramic suite offered a living room/ dining area combination, 1.5 baths, and a master bedroom with workspace.  As the name suggests, floor to ceiling windows afforded lovely views to the west of the Charles River and Cambridge as well as views from the bedroom to the south of downtown Boston and the Charles River.  See the video below for a full tour of the panoramic suite.

Molton Brown pump dispensers in shower

Liberty Hotel was my first luxury hotel experience that utilized toiletry dispensers in the shower and
at the sink.  Since they were filled up with Molton Brown product, I enjoyed them.  Frankly, the pumps meant I didn't need to remember to transport shampoo bottles from the sink into the shower with me and it was convenient to simply press down on the pump vs. opening bottles and dropping soap bars.  For those who prefer the single-serve approach, a small bar of soap was also available at the sink.

The branding at the Liberty Hotel stood out to me.  They tastefully incorporated their history as a jail into the key cards, do not disturb door hanger, and food & beverage with a lounge named "Alibi".  It was the door hanger that I found most memorable from a branding standpoint.

Jail key branding

The lobby bar associated with the onsite "Clink" restaurant attracted a decent crowd for Friday happy hour and evening drinks.  It appeared to be a mix of visitors as well as a local upscale after work crowd.  While there was healthy energy, we were still able to find a spot to be seated and relax. The ground level lounge, Alibi, was also busy with patrons enjoying their outdoor space.  Drinks were pricey at both outlets but also offered unique cocktails.  We'd experienced the breakfast menu at Clink which offered traditional fare.  The omelette was tasty but the french toast was dry.  Coffee, as would be expected, is pricey so plan to enjoy free coffee near the guest elevators beforehand.




Quick Hits

• Branding as a former jail creates a unique boutique hotel experience as is expected from Starwood's Luxury Collection - a nice alternative from cookie cutter properties
• Public transportation is available from the Red Line Charles/ MGH station across the street
• The hotel is adjacent to a traffic circle and Storrow Drive, so expect a lot of automobile activity but know that we didn't experience any road noise issues from our suite
• Enjoy the free sparkling wine at check-in
• If you're an SPG member staying on points, you may score a 1,000 point refund as a welcome gift from the manager
• SPG Platinum late checkout was automatically offered to us at check-in; no haggling needed
• Two free bottles of water plus a third for the in-room Keurig machine are provided
• Don't expect to head home with toiletries to add to your hotel collection; Liberty Hotel uses pump dispensers
• The Panoramic Suite bathroom offers a stall shower and separate tub plus an additional half bath off the living room
• If you wish to mix your own cocktails, the mini-bar area is equipped with a wide variety of glassware like martini glasses
• Two bathrobes with slippers are provided for in-room comfort
• Bedside outlets and desk-mounted outlets make it easy to stay plugged in
• The onsite bars attract a trendy, young professional crowd
• The bar menu offers low calorie cocktail selections
• Book on-site "Clink" restaurant for breakfast or dinner via Open Table to earn points through that channel

Conrad Miami Review: Packed with Value, Especially for Weekend Stays

Bedside outlets on both sides of the bed

After first experiencing the Conrad Miami during a pre-cruise stay, we've come to enjoy it for an occasional weekend getaway being drawn by the red carpet treatment from a great team.  Conrad is one of Hilton's luxury brands and this property lives up the standards.  In fact, this is one of the few properties in the Hilton Worldwide portfolio that we stay at since it takes a lot to sway us from Kimpton or Starwood.  To understand why, check out the detailed property, guest room and spa tour video embedded below, which covers our recent August stay.




The Conrad Miami is in the downtown Brickell neighborhood, which, much like the rest of Miami, is experiencing growth and thus offers plenty of restaurants and bars within walking distance.  The neighborhood and the hotel provide a much more relaxing, subdued experience that South Beach, which is a 15-20 minute Uber ride away.

Sky Lobby on the 25th Floor

During the summer months, you can find exceptionally good values.  At one point this summer, the hotel offered $100/ night promotional rates. We booked through Amex Fine Hotels & Resorts to secure additional perks paying a rate of $179 and also accruing more than 20,000 Hilton points from a one-night stay due to promotions.

Year round, I've seen compelling weekend rates from time to time.  I expect that this hotel attracts primarily business travelers driven by its location on the top floors on an office tower and thus has higher occupancy Monday to Thursday.  You can get even more value during your stay by securing various booking benefits and discounts (see the Quick Hits below).

Hot Breakfast Buffet, Free through Fine Hotels & Resorts

It feels like the Conrad Miami needs to work harder to capture the leisure market and that results in a fantastic guest experience.  Two stays ago, we arrived around 8:30am from a cruise and attempted to check-in.  Laura from the front of house team took care of our check-in but advised that we'd been upgraded to a suite that wasn't yet ready.  We enjoyed the breakfast buffet to pass the time.  Laura came to see us and offered to provide us with an alternate suite while housekeeping prepared our assigned suite. but disclosed that it would be a smoking room.  She took me up to personally allow me to check it out and I declined the offer since I am sensitive to smoke smells.  But frankly, the fact that she went through all of that effort on my behalf made an impact on my experience.  Fast forward to a stay a month or so later and when I walked off the elevator, Laura's face lit up and she greeted me by name.  To me, that was amazing.

Serene Rooftop Pool in Adjacent Building

While at the Conrad Miami, you can enjoy a relaxing pool experience with access to free sunscreen and bottled water.  They even provide a variety of pool floats and free cabanas.  The pool sits atop a separate building across the valet area and tends to be provide a quiet, relaxing vibe.

For dinner, I recommend eating at the Level 25 bar and lounge.  It's more casual than Atrio, which is often quiet Friday through Sunday night, but even better, you get to order from either the lounge menu or the full Atrio menu.  You can also enjoy your cocktails and meal out on the balcony offering partial bay views.  I recommend the lobster sliders and the goat cheese croquettes.

Quick Hits

Relaxation Room at the Spa at Conrad

• Stay at the Conrad Miami for a 1-3 night weekend visit or for pre or post-cruise stays when sailing from the Port of Miami. The clientele tend to be solo travelers, couples or well-behaved families visiting from outside the US.
• Book through Amex Fine Hotels & Resorts for $100 food & beverage or spa credit, free daily hot breakfast buffet, room upgrade (if available), and daily wine & cheese reception, while still accruing Hilton HHonors points.
• If dining at the onsite restaurant, Atrio, check Restaurant.com for a pre-paid voucher to save up to 60% and book your reservation through Open Table for points.
• The Spa at Conrad offers seasonal specials that can provide much better value.
• Try the daily happy hour at nearby Truluck's, an upscale steak and seafood restaurant, for half-price cocktails and appetizers with live piano singers.
• Enjoy scenic runs from the hotel that take you around nearby Brickell Key.  A jogging map on a lanyard is conveniently located in the guest room closet. 
• Download the Conrad Concierge app and schedule your preferred housekeeping and turn down service times, request a select of specialty pillows, and more for free.

  

  Jogging Map in Each Room

W Fort Lauderdale Upgrade: Captivating Views with Generous Outdoor Space

As the largest W hotel in the world by number of units, the W Fort Lauderdale keeps things interesting even for frequent guests.  Even though I've stayed at the W Fort Lauderdale more than 15 times, their large inventory of room types enabled me to still have a new experience during our stay this month.

As a SPG Platinum member visiting during low season and booking a standard "Wonderful Room" for a rate of ~$225, we were upgraded to a "Sensational Suite".  W's room type names are a bit tough to grasp, but generally the suites don't disappoint.  In this case, the Sensational Suite is an oceanfront room with an open concept bedroom, sitting area and bathroom (peak-a-boo style).  But for this room, the big draw is the outdoor space.  The balcony rivals the size of the room itself and offers unobstructed ocean views as well as vantage points north and south along the beachfront.

Oceanfront balcony of a Sensational Suite at the W Fort Lauderdale

We made use of the dining table to enjoy dinner to go from Whole Foods (about a 7-10 min drive).  The Wi-Fi, free for SPG Platinum, worked on the balcony as well allowing me some productivity time while relaxing in one of the two chaise lounges.

One pet peeve about this W is that the outdoor furniture is dreadfully uncomfortable as is.  There are plush cushions that are custom made to fit the furniture, but you have to know to request them from the "Whatever" desk and have them sent up to your room.  I expect that most guests don't know to call, nor should they have to.

There's been one new development at this property that I first experienced during this stay: upon check-in, guests must sign a form indicating that they are aware of the hotel's policies about additional guests and noise.  Groups are not allowed to be in the rooms and no noise is allowed during late evening hours.  The front desk reported to me that they've been having some noise/ party issues more recently so they've initiated the new form policy.

Quick Hits:

W Fort Lauderdale Residences offer full kitchens and laundry

• Stay at the W Fort Lauderdale if you're loyal to SPG, not traveling with kids and like a "scene" at the pool.  Pool waitstaff are not very attentive and some are less than friendly.  Stay there for the pretty amazing rooms and views.
• If you are there more for relaxation, check out the second smaller pool on deck 5 of Tower II (Wet Deck West) which is a more serene environment and offers free first-come, first served cabanas.
• If you like cooking in, try to get an upgrade to one of the residences that offer full kitchens and in-room laundry in the western tower (Tower II) of the hotel.
• If you're going to visit the onsite Bliss Spa for nail service, ask for Tia.  She's authentically friendly while executing the service professionally.
• While the onsite restaurant, Steak 954, offers some good breakfast options, they are pricey for dinner.  Instead, try nearby S3 (Surf, Sun, Sand) in the Hilton for casual/ slightly upscale indoor or outdoor dining with some unique spins on traditional fare.  Both restaurants are on Open Table (even Steak 954 for breakfast), so capitalize on the points opportunity.

  

  S3 Restaurant in the Hilton Fort Lauderdale Beach shares their daily specials on a mini blackboard that accompanies the menus.

  
  

Trapped By Your Elite Status? Leverage Status With One Chain To Get Equivalent Privileges Elsewhere

Since 2003 I've been a loyal Hilton HHonors member with Diamond status. I've always made it a point to stay at properties that are part of the Hilton family to make the most of the investment I made to earn the elite status in the first place.

In my opinion, the Hilton Diamond VIP experience has been on the decline.  Upgrades have become few and far between and some properties.  The staff don't go out of their way to make sure your loyalty is recognized.  Instead, you get the stock, "We thank you for your loyalty as a Diamond member.  Unfortunately, [insert appropriate "no" response to your request here]."  Most recently, that happened when checking in for my anniversary at the Hilton Fort Lauderdale Beach (where we've stayed on average 3-4 times per year) and not getting an upgrade, special treat, or even the flexibility to switch from a room with two queens to one king bed!  I guess I should be grateful for having my checkout time extended by a whopping 90 minutes (negotiated up from their initial offer of one hour).

This plus feedback from friends about their satisfaction with Starwood Platinum Preferred Guest status led me to want to focus on staying at Starwood properties.  However, with  only three stays logged on my Starwood Preferred Guest (SPG) account since 2006, I'm a nobody.  The thought of starting out from scratch to build up to Starwood's equivalent of Hilton's Diamond status seemed daunting.

Thinking it was a complete long shot, I called SPG last week.  I simply explained that I am a Hilton Diamond VIP and I wanted to consider directing my business to Starwood going forward.  I asked if there was any opportunity for them to offer me Starwood Platinum status to match my status with Hilton.  The representative explained there was a program they offered to do just that.  I was still skeptical that somehow I wouldn't qualify when they saw that I had only three stays in the past four years.  The representative explained that I simply needed to fax in a screenshot of my Hilton HHonors account showing my account number and active status as well as the same for my SPG account.  The information would be reviewed and I would be notified within 30 days.

Much to my surprise, within one day of faxing the information, I received an email from the the SPG Platinum Liaison informing me that I had been awarded Platinum Status.  The email set our new relationship off on the right foot:

"Thank you for taking the time out of your busy schedule to send in your Diamond level credentials with Hilton HHonors. We are excited to hear that you have considered making Starwood Hotels and Resorts the place for making your dreams come true.

As you are already an elite member with Hilton HHonors, we recognize your extensive travel needs. It is our pleasure to make a one time complimentary upgrade to our Starwood Preferred Guest Platinum Preferred Level for the remainder of 2011. In addition to the great benefits of our Platinum Preferred Guest Level, we simply ask that you maintain 25 eligible stays or 50 eligible nights each year. This minimum requirement is based upon a calendar year, January 1 through December 31."

So, now we'll see what happens.  Hopefully SPG Platinum will live up to my expectations and I'll be motivated to stay at Starwood hotels frequently enough to maintain my status after December 31.  In the meantime, I feel a sense of newly found freedom by breaking things off for the time being with Hilton so I can "see other people".

My Hotel Pet Peeves - Volume 1

Here's my candid feedback for hotel management companies to consider when designing and operating hotels.  I often wonder what process hotel designers use to understand how the guest is likely to experience the room before they create hundreds or thousands of that very room.

1) Bedside outlets: When I tuck myself in at night, I still spend time catching up on back-logged emails.  I also use the alarm on my smart phone in lieu of the less familiar hotel room alarm clock. I'd love at least two outlets that are easily reachable from the bed.  A wall outlet behind the bed doesn't count, unless you want the next item of the list to become a more frequent issue...

2) Cleaning those hard to reach places: The last thing I want to see when you force me to contort my arm to reach an outlet behind the bed is to see various food and grime stuck on the floor back there. Housekeeping needs to keep a list of those hard to reach areas that might not be immediately visible when doing a quick scan of the room and then make sure they are cleaned at least weekly.  I've encountered old gum drops, band-aids, tissues, and dust behind the bed when searching for outlets.

3) Make ironing less of an ordeal: Unpacking and ironing is never a fun part of arriving at a hotel.  It's even less fun though when the in-room iron has a water chamber that's nearly impossible to maneuver under the bathroom faucet.  Is it too much to ask to leave a small pitcher with the iron to avoid water-logging the iron's circuitry?

4) Minimize hallway noise: I totally understand that you can't always keep off a guest floor that happens to be filled with prom-goers or a high school field trip.  However, the guest room doors should be a bit more effective at preventing guests from hearing the slightest pin drop from outside the room.  Is there really a need for the 3/4" gap between the bottom of the door and the floor?

5) Keep the shampoo in the shower: Most people I know most frequently use shampoo, conditioner, and body wash while in the tub or shower.  I'd rather not begin to enjoy my hot shower and then realize I have to walk across the bathroom in the cold to grab the shower-related toiletries that have been neatly displayed next to the sink.  Hilton Hotels are frequent offenders in this category.

6) Eliminate resort fees:  If every guest is forced to pay the resort fee whether they use the gym, pool, newspapers or not, there's no reason other than trickery that it should not be included in the rate.  Baggage fees from airlines are an optional charge based on behavior.  Resort fees are mandatory charges and should be embedded in the published rate for comparisons.  If it is in fact going to be a separate charge, guests should be able to opt-out of the services that the resort fee theoretically covers.

What are your top concerns about your hotel stays?

To be continued...