Triangle Trip

Following up on my last article, SPG is finally showing free weekend nights awards online at spg.com (you have three more days to earn another free night which can be redeemed before the end of September 30, 2009).

To check your SPG free weekend nights status, login to SPG’s website, select account information, than under Starpoints@ Awards, click “My Earned Award” link.

The My Earned Award page should show you the number of free weekend night awards.  Reminder, they expire end of September and are running out of rooms fast.  Use them or lose them.

Quick update: I just booked a category 5 hotel for labor day weekend.  The process took a little bit since everyone is saving their awards for the last minute august/september travel.  The spg operator has to search date by date for the hotel of choice.  I had the operator search through each weekend in september for numerous hotels until we luckily found one.  Book quick for the higher category hotels.

United is trying to win back more and more customers like us… I just got an email from United telling me that they will be removing the last minute (“close-in”) award processing fees effective July 30, 2009.  The award travel processing fees were $100 if you booked an award ticket within seven days of departure, and $75 for 7 to 21 days prior to departure.

Here’s the link to the official press release:  United Puts the Easy Back Into Using Frequent Flyer Miles, Eliminates Fee

This is United’s attempt to get its customers to use up their miles and so United can clear its balance sheet of people holding onto airline miles.  We should take advantage of this opportunity and burn up some miles.  This new policy does not eliminate the co-pay for upgrade (see previous post).  Delta need to follow suit as they are notorious with award booking fees.

Marriott has been offering a promotion (click here for the link to Marriott’s Triple Summer Miles promotion) where you could earn triple miles on Delta or Northwest from June 1, 2009 to August 31, 2009. For those unfamiliar with the standard Marriott reward offering, you can choose to earn either 10 Marriott points or 2 Delta miles for each US dollar spent at a Marriott. If you sign up for this particular deal, you would earn 3x the standard Delta SkyMiles – 6 miles for every dollar spent.

My initial reaction was that this promotion is a no brainer, but, of course, the tradeoff between hotel points and airline miles can be considered more of an art than a science. For instance, a person that uses Marriott points for stays at Marriott hotels would view the trade off differently than a person who is accrues Delta SkyMiles for free flights. I personally avoid Marriott hotels unless there’s truly nothing better in the area where I’m vacationing; I will save the Marriott bashing for a separate post. Nevertheless, in an attempt to determine whether Marriott Points or Delta SkyMiles are more valuable, let’s set aside personal preferences.

To make this decision more of a science, let’s take a common item that can be purchased with points or miles – say an iPod Touch (16GB). Based on a calculated spending level (how much actual cash you need to spend at the Marriott to get the iPod) and an assumed price of the product, a cash back equivalent (CBE) can be determined. The reward offering that results in the highest CBE is the better deal. As you can see from the table below, this methodology suggest that the 3x Delta miles promotion offers the highest CBE at 3.01%. The results also show that without the 3x promotion, the Marriott points are more valuable at a 2.62% vs 1.00% CBE.

When no promotions are involved, you may want to check out Captain G’s perspective on airline miles vs hotel points.