Generally the value of loyalty points goes down over time. There are lots of reasons, but one that eventually affects all programs is inflation:
- As general costs rise, the number of points you earn with your credit card for buying the same thing also rises
- As airfare and hotel rates increase, the number of points you earn for the same price increases
- The dollar amount that hotel loyalty programs pay to a property for an award, typically tied to room rate, increases over time
Other reasons like decreasing liability on corporate books, a desire for increased profits, and a lack of understanding about long term loyalty motivations contribute too. (Marriott: You’re not going to be the corporate king forever even if it feels like it now.)
So what do we do with that? There’s a 101 and a 201 level answer:
- 101: Earn and burn
- 201: Sell excess now, buy needed later
Have a nice day friends!
301: Burn and Earn