pingreeman

Marriott vs Hilton Point Value - Conclusions (Part 4)

Discussion created by pingreeman on Oct 30, 2011
Latest reply on Dec 23, 2011 by jasper100
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Many MRI members have alluded to point value comparisons between Marriott and Hilton. So, now the question is overall, which is the best program for earning and using points?

 

Three previous analysises were used to drive to the final conlcusion:

  1. A comparison of point values for buying gift cards and merchandise: Marriott vs Hilton Point Value
  2. A comparison of hotel room purchasing power of points: Marriott vs Hilton Point Value - Part 2
  3. A comparison of how quickly points are earned for hotel stays: Marriott vs Hilton Point Value - Part 3

 

If you can't earn points, you can't spend them, so IMO, the most important angle is to determine how quickly points can be earned per dollar spend.

Over the course of one year (and assuming two Megabonus promotions), spending $22,828 will yield 788,528 and 517,820 Hilton and Marriott points, respectively, or an "earning factor ratio" (EFR) of 1.52 Hilton:Marriott.

 

If you can't spend points, they're worthless, so IMO, the second most important angle is to determine what the points are worth "cash-wise." Since hotel rooms have many variables (quality, location, etc.), the best "pure value" comparison lies within like merchandise and gift cards.

To buy a melding pot of similar items, the number of points required is 2,728,500 and 1,434,000 Hilton and Marriott points, respectively, or a "cash factor ratio" (CFR) of 1.90 Hilton:Marriott.

 

If you can't spend points on hotel rooms, what's the purpose of earning points for a hotel loyalty program, so IMO, the third most important comparison is to determine hotel room value of points.

To purchase rooms on points, it takes 4,086,250 points for $27,567.19 Hilton dollar-value of rooms whereas Marriott requires 2,425,000 points for $43,492.54, or 148.23 Hilton points per dollar versus 69.43 Marriott PP$ or a "hotel factor ratio" (HFR) of 2.13 Hilton:Marriott. ***

 

FINAL CONCLUSION:

Even though the EFR is significantly higher for Hilton, so are the CFR and HFR ratios. A comparison of the Rs determines the ultimate winner.

Gifts and merchandise are earned 80.0% "quicker" under Marriott versus Hilton (EFR/CFR or 1.90/1.52) - WINNER: MARRIOTT

Free hotel rooms are earned 71.3% "quicker" under Marriott versus Hilton (EFR/HFR or 1.52/2.13) - WINNER: MARRIOTT

Summary: Without a doubt, the earning capacity of points goes to Hilton, but the actual usage of points is clearly a Marriott advantage. And for those who wish to spend some points on London or Paris stays, it's a slam dunk on Marriott without question.

 

*** These numbers are from the Part 2 comparison, but eliminated the two venues (London & Paris) as these significantly skewed the points favorably towards Marriott. However, including these venues yields 5,970,958 & $34,508.67 Hilton and 2,750,000 & $43,492.54 Marriott, a HFR of 2.64 H:M.

Using all venues, then Free hotel rooms are earned 57.3% "quicker" under Marriott versus Hilton (EFR/HFR or 1.52/2.64) - WINNER: MARRIOTT by the widest margins of all

https://www.rewards-insiders.marriott.com/message/30984

Many MRI members have alluded to point value comparisons between Marriott and Hilton. So, now the question is what are points worth when cashing in on hotel rooms? Part 1 is found here for gift cards and merchandise: Marriott vs Hilton Point Value

 

The below analysis makes the following assumptions:

  1. A one week's stay for 07/15/2012 through 07/21/2012 (an attempt to capture "high season" in most geographical locations listed)
  2. Metropolitan areas were chosen solely based on largest populations, USA & Europe that have BOTH Hilton and Marriott availability
  3. You have "no idea" what is the best hotel in the metro area, so you rely on Tripadvisor reviews to select your venue (normally, go to MRI and ask for a recommendations; however, to be more "statistically unbiased", I opted simply to accept Tripadvisor ratings as the driver)
  4. You rely on Tripadvisor's hotel rankings/reviews starting with the highest rated venue for the brand that ===>
    • MUST be available on points (venue must have availability) or the venue is omitted from consideration, and
    • Has the option of paying cash, and
    • Willing to take the lowest priced room type available for points redemption (and its cash equivalent)
  5. Some prices were in Euros and BPS; conversion to USD as of 10/28/11
  6. Room rates only - no taxes or additional fees calculated or estimated

 

RESULTS: It takes 2.64 Hilton points to equate to a Marriott point. 173.03 Hilton points buys $1 of Hilton rooms whereas 65.54 Marriott points buys $1 of Marriott rooms.

Note on rank: in the first line, a -3 appears as Rank before the highest rated Marriott property; this means that three Hilton properties ranked higher than the best Marriott, yielding a corresponding 3 in the Rank column by the Hilton property. In other words, Tripadvisor ranks three Hilton properties ahead of the best Marriott property subject to the conditions specified, bove.


Marriott vs Hilton Points 2.gif

https://www.rewards-insiders.marriott.com/message/31022

Many MRI members have alluded to point value comparisons between Marriott and Hilton. So, now the question is how quickly are points earned in both programs? Part 1 is found here for gift cards and merchandise: Marriott vs Hilton Point Value and Part 2 is found here for hotel rooms in major metropolitan areas: Marriott vs Hilton Point Value - Part 2

 

Now that we know how we spend points, let's look at how we earn points and compare.

 

The analysis below are for stays I made in September 2011 at a Hilton Garden Inn and a Marriott Springhill Suites, both in Columbus, OH and about 2 miles apart (both near my current client). Ironically, both have the same exact negotiated rates and state/city taxes making the comparison all the easier. Lastly, it should be noted that I have top-tier status in each program and also their "premier" credit cards and am signed up for Hilton's "Double Dip" bonus program and Marriott's Megabonus promotion. One assumption - I will make the number of required Marriott nights to earn the full Megabonus of 50,000 points.

 

Key findings: the Megabonus makes a HUGE DIFFERENCE in points earnings, nearly doubling the "normal points" earned when the promotion is not underway and not already achieved. Normal earning power of points is 35.54 points per dollar for Hilton and 18.30 points per dollar for Marriott yielding a ratio of 1.89 as many Hilton points per dollar spend versus Marriott points per dollar spent, whereas it is 34.54 and 36.53 respectively during Megabonus promotions or 0.95 ratio.

 

Finally, I added two additional columns to see how Megabonus works out on an annual basis using the assumption that 50 nights are needed to earn 100,000 Megabonus points (two promos per year) yielding a Marriott PP$ of 22.68 or a ratio of 1.52 H:M.

 

 

Marriott vs Hilton Points 3.gif

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