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Rethinking Hotel Loyalty – Forbes Advisor - Forbes

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If your Hyatt Globalist status gives you a room upgrade and free breakfast but you’re staying at a Hyatt Place with one type of room and free breakfast for everyone, do you really have elite status? While the question might not have the philosophical weight of a tree falling in a forest, it still needs to be asked.

For years, a cottage industry of miles and points blogs has capitalized on pushing a single message: earn elite status via credit card rewards and you’ll have champagne wishes and caviar dreams on a beer and anchovy budget.
Elite status has precisely zero value if you’re not traveling, as 2020 showed us in stark detail. Even as you start traveling again, you may travel very differently than you used to. It’s time to take off the titanium-tinted glasses and take another look at hotel loyalty.

The Status Trap

While a hotel loyalty funeral is premature, the mattress run may be resting in peace. Hotel stays, in general, have a cost-benefit analysis component not present in 2019. With that in mind, a hotel stay made just to earn room elite night credit for that next level of metallic recognition seems about as relevant as a flip phone. It may be time to gnaw yourself out of the status trap.

Simply put, you’re caught in a status trap when possession of elite status (or the pursuit of elite status) clouds your judgment. Sam Simon, the creator of the miles and points site Milenomics, has long held a clear-eyed view of the status trap. “Now more than ever, hotel status likely over-promises and under-delivers. Rather than chasing status, savvy travelers can guarantee results by not being beholden to a single hotel brand. Instead, look for stays which already bundle the amenities needed in the room for a true ‘be your own elite’ experience.”

When Luxury Turns Icky

The “be your own elite” model makes even more sense when basic services such as housekeeping aren’t happening, even at five-star hotels. Hilton recently announced an end of daily housekeeping at all but its most prestigious brands. Unfortunately, this may be a trend that other hotel chains follow.

Some of the service changes, such as the end of locker room toiletries bolted to the wall, might be a net positive for sanitation. But on the whole, the entire experience of staying at a hotel will feel bare-bones, no matter your status, for some time to come. Hilton, again leads the pack here with their decision to substitute their previously generous breakfast benefit for a limited value voucher. The $10 to $15 offered may cover a coffee and croissant if you’re lucky. For now Hilton states the change is only in the U.S. and only through 2021, but time will tell.

The most likely hotel status perk casualty is the Executive Club, that bastion of continental breakfast buffets and happy hour munchies. The cheese cubes that were ubiquitous at Club Lounges seem a lot less appealing now that you consider how many people have touched the serving tongs, plates, or the actual cheese (!) before you popped the cube into your mouth. As clubs reopen, expect most of your snack offerings to be similar to those you pack in your kid’s lunch box.

Anyone who has tried to “vacation” with two kids in a 200 square foot hotel room knows that space can make a huge difference in how you enjoy your holiday. Vacation rentals have been on the upswing for a few years. The ability to not only separate from your own family in your lodging but the ability to separate from the entire world may feel more luxurious than a pre-packed granola bar and yogurt “free” breakfast.

Who Is Traveling Again?

Leisure travel may be coming back with a vengeance, but business travelers are the bread and butter of most Marriotts, Hiltons and Hyatt Regencys. While we can assume that hotel elites will be some of the first to return, business travel may never return to pre-Covid levels. Now that companies have realized how many conferences, all-hands meetings and sales calls can take place virtually, it may be harder to approve those expense reports.

Even those business travelers who used to earn their status via actual heads-in-beds nights are unlikely to have enough travel booked to get to the 60 to 75 nights per year required for top-tier status. Fortunately, the hotel chains know this and have made it easier to earn status for the next year. While it’s nice that the loyalty programs are letting elites more easily keep their status, rest assured that if they had a choice, they wouldn’t be giving away the store.

Where Will You Go When You Travel Again?

Well, you’re not going to Australia, Argentina and a long list of other countries for at least the rest of 2021. Sadly, many of the properties where loyalists enjoy elite benefits are located outside of our shores.

Two features highlight the main travel trends of the summer: trips to visit family and destinations surrounded by nature. Coincidentally, these destinations are heavy with select-service hotels such as Courtyard by Marriott, Holiday Inn and Hampton Inn.

Select service hotels, no matter the chain, share something in common: Status means exactly squat. Room upgrades might mean you get an upgraded view from the parking lot to an air conditioner and at many chains, everyone gets the same free breakfast. There’s no elite line at the waffle machine. In fact, there may no longer be a waffle machine at all.

Bottom Line

We all like being pampered, but the services and amenities we used to experience as hotel status elites are either heavily modified or eliminated outright. With that in mind, it may be time to take a hard look at where you spend your lodging dollars. Does it make sense to stick to one chain anymore? As both our behavior and what hotels can offer continue to evolve, you may find that working towards elite status no longer fits your lifestyle.

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