SAN FRANCISCO--(BUSINESS WIRE)--Following widespread Labor Day strikes involving over 10,000 hotel workers, the hotel workers union UNITE HERE has launched HotelDisloyalty.org, a new website exposing how Marriott, Hilton and Hyatt have devalued their rewards programs since 2020. For longtime guests, this means years in saved points might no longer be enough for a dream vacation, or means services they depend on have been cut. The union is running digital ads to survey customers on how rewards programs’ devaluation has affected them, and to educate potential program participants about the issue.
HotelDisloyalty.org compiles analyses and reporting from travel and credit card experts and finds that hotel companies have devalued their programs since 2020, despite record room rates.
- Marriott devalued its Bonvoy program’s rewards points by 33% from 2019 to 2023, and Hilton Honors and World of Hyatt also saw devaluations.
- Even more alarming for consumers, hotel companies devalued their rewards points with little to no notice to rewards program members.
- Elite reward program members and credit card holders have not been spared and have seen their perks cut in recent years.
The devaluation of rewards programs is one of many examples of changes hotels have made to their operations and offerings since 2020. Hotel staffing per occupied room was down 13% from 2019 to 2022 as many hotels maintained COVID-era cuts, including understaffing, ending automatic daily housekeeping, and removing food and beverage options. The union says these cuts caused some workers to lose jobs and income, while creating painful working conditions for the others who carry the increased workload.
Reward program devaluation has caught the attention of federal regulators. In 2023 alone, the Consumer Finance Protection Bureau (CFPB) said it received 1,200 complaints involving credit card rewards, with points devaluation among the chief complaints. The CFPB and the Department of Transportation (DOT), in a May 2024 joint hearing, raised the possibility of further regulating rewards programs in the travel industry. In September 2024, the DOT launched a probe into airlines reward programs.
Beyond devaluation, HotelDisloyalty.org also reveals how major hotel reward programs and credit cards compare poorly to similar offerings by airlines. Notably, multiple expert analyses agree that the dollar values of many hotel reward program points are lower than the value of major airline points.
“We respect hotel guests and expect the hotel industry to do the same,” said Gwen Mills, President of UNITE HERE. “Our goal with ‘Hotel Disloyalty’ is to educate customers on the shortfalls of hotel loyalty programs, especially because companies aren’t always forthcoming about cuts and other negative changes. We are calling on the hotel industry to be transparent and fair around their reward programs.”
Visit www.HotelDisloyalty.org to learn more.
