Triangle Trip

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.

How much is 10,000 United miles worth to you?

Are you willing to sacrifice three stays toward status at your favorite hotels (Starwood, Marriott, Hilton, etc.)?   Are you willing to forgo your free weekend nights at Starwood or free golf club offers from Crowne Plaza?  Are you willing to experience a motel for business travel (ghetto it up!)?  If so, here’s a deal for you!

Wyndham Hotel is offering 10,000 United miles in exchange for three stays at three of their hotels.  You will need to register or enroll (link to registration page) for a Wyndham account. After you have enrolled/registered, you must choose to earn United miles for your Wyndham stays. To get the 10,000 United miles, you will need to complete THREE stays at THREE DIFFERENT Wyndham branded properties. This means you cannot have all three stays at a Wyndham. Below is a list of the Wyndham family of hotels for you to choose wisely:

You will have to complete your three stays at three different brands between May 15, 2009 to September 10, 2009.  Unlike the Crowne Plaza offer which doesn’t allow you to have Priority Club points for your free nights, Wyndham will allow you to earn normal United miles for the three stays.  You should see your 10,000 bonus United miles in November or early December (6 to 8 weeks after the end of the promotion).

Aside from the Wyndham (which I have stayed at 2 to 3 times), all of the hotels on the list are like motels at best. I am not sure if I would stay there for business – maybe Ramada (and that’s a stretch). I have stayed at a Knights Inn and Travelodge when I was traveling as a college intern but that was years and years ago.  You might get lucky with Hawthorn Suites.  I have driven by a few and they looked new, especially the one’s near the airports.