Travel-point programs are posting increases in redemptions as consumers seeking to cut costs redeem them for electronics and even gift cards to buy groceries.
“Members are starting to use their points and view their points as another item in their personal portfolio,” said Don Berg, vice president for loyalty programs for the Intercontinental Hotel Group. “People are starting to use their points as they would cash for everyday experiences.”
The hotel chain, which includes Holiday Inn, Holiday Inn Express, Candlewood Suites and Staybridge Suites, started noticing an uptick in point redemptions for its Priority Club Rewards program in September. In January, IHG saw a 25 percent increase in redemptions over January 2008.
Members are using points for gifts such as iPods or gift cards, and some are using points to access Target gift cards, which can be used for groceries, according to an IHG analysis.
The vast majority of redemptions are still for travel, but the portion of points used for merchandise is increasing and the overall number of redemptions is up, program experts said.
Ivette Dominguez, owner of Alpine GMC Buick, redeemed her American Express points in November for a Sony digital movie camera.
“I love the ease and no exchange of money,” she said.
Now she’s again planning to use points, but this time for a spring- break trip to Scottsdale, Ariz., where the Four Seasons is offering third and sixth nights free. The points she’s using will pay for the rest of the trip.
Point redemptions are at an all-time high for Hilton’s HHonors program. Since 2005, the program has seen an increase of about 25 percent in redemptions annually.
“Overall, we are certainly seeing record numbers of members redeeming their points,” said Eileen Hanson, vice president of marketing for Hilton HHonors. “Maybe they are not traveling as much this year; maybe they are looking for unique things to do with their points in addition to the free nights they can redeem.”
Hanson emphasized that most users are still booking travel rewards, but merchandise is popular.
Redemptions in the HHonors reward store increased 45 percent in November and December from the year before. The reward store was launched in 2007. Some of the most popular items include gift cards for Best Buy, Macy’s and restaurant chains.
Frontier Airlines spokesman Steve Snyder said the company’s frequent-flier program also has seen an increase in members redeeming miles for flights and merchandise through partner .
Many families are still using miles for travel but are being much more financially savvy about planning the trips.
Angela Baier, who does marketing for Cherry Creek Shopping Center, said her family redeemed points for airline tickets for their summer vacation to Hawaii.
“The room rates are so low, it was our way of saving a ton of money,” she said. “We wouldn’t have probably taken a vacation without the miles.”
Elizabeth Aguilera: 303-954-1372 or eaguilera@denverpost.com
This article has been corrected in this online archive. Originally, due to a reporting error, the Priority Club Rewards program of InterContinental Hotels Group was misidentified.
