Budget-minded travelers understand that enrolling in hotel loyalty schemes can lead to significant savings. But which of these programs actually delivers the greatest return for your spending?
CarTrawler, a travel tech company, recently published findings from its third annual Hotel Reward Payback Survey. The research firm IdeaWorks compiled the information by examining six hotel loyalty schemes: Best Western Rewards, Hilton Honors, IHG Rewards Club, Marriott Rewards, Starwood SPG and Wyndham Rewards.
The survey revealed Wyndham Rewards members receive the highest payback, while participants in Starwood’s program see the smallest return among the six.
For every $100 spent, here’s the average value returned by each loyalty program:
- Wyndham Rewards: $16.70
- Marriott Rewards: $8.80
- Hilton Honors: $7.50
- Best Western Rewards: $7.40
- IHG Rewards Club: $6.70
- Starwood SPG: $5.40
Points Are Losing Purchasing Power
The Wall Street Journal compared this most recent hotel rewards report with IdeaWorks’ figures from two years earlier and determined that reward points generally don’t stretch as far as they once did.
It now takes more points to redeem a free night at Starwood and IHG properties even though room rates have declined, according to The Wall Street Journal. Travelers at Hilton and Marriott can redeem fewer points for complimentary nights that now cost less in cash, but even those programs aren’t as lucrative as in the past, the article noted.
No detailed comparison for Wyndham’s or Best Western’s programs was included in that piece.
Still, The Wall Street Journal article emphasized that while point values for free nights have dropped, loyalty programs aren’t necessarily offering fewer perks. Some chains are broadening benefits to include things like upgrades and complimentary morning meals.
Use Hotel Cards to Boost Your Savings
Accumulating rewards through co-branded hotel credit cards is another effective strategy to enhance travel savings. The survey also analyzed which hotel-branded cards deliver the best returns on everyday spending.
The research showed the Starwood Preferred Guest American Express provided cardholders the highest rewards value, while the IHG Rewards Club Select Credit Card produced the weakest returns.
Here are the reward percentages for each dollar spent on routine purchases with hotel credit cards:
- Starwood Preferred Guest American Express: 2.7%
- Wyndham Rewards Visa: 2.5%
- Best Western Rewards MasterCard: 1.5%
- Hilton Honors American Express: 1.5%
- Marriott Rewards Premier Credit Card: 0.9%
- IHG Rewards Club Select Credit Card: 0.7%
The survey notes that credit card rewards can be larger when you charge travel-related expenses like hotel nights or airfare versus standard everyday buys.
Keep in mind, whether you’re using a card for travel or daily expenses, paying your balance in full each month prevents interest from eroding your rewards. That way, you can enjoy trips without accumulating extra debt.
If you’re looking for more ways to stretch your travel budget, check out tips on how to earn free cash 275, strategies for frequent flyer programs, and ideas for restaurant rewards programs.
Amanda Lane is a contributing writer at Savinly.
