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New Report Names Top Hotel Rewards Programs

Wyndham and Hyatt offer the best rewards program. But other brands have a lot going for their loyalty programs, too.

Wyndham tops the list of the best hotel loyalty rewards programs among the largest hotel chains in the U.S., according to a new report from personal finance site WalletHub.

All of the ten major hotel chains featured in the report offer reward programs that guests can join for free. But not all travelers will benefit from just any of the rewards programs.

“They all have different rules, earning rates and point values, as well as a variety of unique benefits,” says the WalletHub report. “Plus, a lot depends on where you travel, how often you stay in hotels and how much you’re comfortable spending per night.”

Guests aren’t the only ones reaping the benefits of a good loyalty/rewards program.
“Hotels can afford to give quite a bit of perceived value to consumers, because the hotels have small marginal costs relative to the normal charges,” says Douglas Hausknecht, associate professor of marketing & international business and assessment officer at the University of Akron in Akron, Ohio.

“Consumers benefit from tangible savings, relative ease of decision making and an intrinsic boost from having ‘earned a reward.’”

What makes a great hotel rewards program?

The WalletHub report ranked the top largest hotel chains in the U.S based on:

  • Earning policies
  • Rewards value for light travers, moderate travelers and heavy travelers
  • Redemption policies
  • Geographic coverage
  • Status levels such as ease of achieving top membership status and valuable membership level perks
  • Other features such as point expiration policies, number of transfer partners and whether points can be purchased by rewards members at fair value

“The best hotel rewards programs also have co-branded credit cards, which allow frequent guests to earn free nights on every purchase they make, wherever Visa, Mastercard, American Express or Discover is accepted,” says the WalletHub report.

“The rewards these cards provide vary widely, just like the loyalty programs they represent.”

Top 5 hotel rewards programs

Very few hotels meet more than three of the ranking criteria used for the WalletHub report. Here are the top five U.S. chains with superior rewards programs, based on a 100-point scoring system.

1. Wyndham rewards

Ranked the best overall with a score of 68.34. Wyndham ranked high due to the value of rewards points used for free nights and bonus points on booking for Gold status members. Other top-ranking features from Wyndham rewards:

  • No expiration on rollover nights
  • Solid co-branded credit cards
  • Large portfolio of popular hotel brands

“Some of the Wyndham Rewards program’s best features include points worth an average of 1.18 cents apiece, lots of redemption options and lots of transfer partners,” says the report.

But even this top-ranking chain’s rewards program has a couple of drawbacks:

  • Points expire after 18 months of inactivity
  • Low point values when redeemed for merchandise and non-hotel travel accommodations

2. World of Hyatt

Ranked #2 (67.15) for best earning policies, “very valuable” points when used for free nights and no blackout dates for standard rooms and a variety of methods for redeeming rewards. Discoverist-Globalist members also receive bonus points on bookings.

Hyatt’s rewards program cons:

  • Only one co-branded credit card
  • Fewer locations in the U.S. and abroad than top competitors
  • Points expire after 24 months of account inactivity

“Some of the World of Hyatt rewards program’s most notable features include points worth an average of 2.53 cents apiece, a wide range of redemption options and bonus points on bookings for members from the second membership tier onward,” says the WalletHub report.

3. Radisson Rewards Americas

Ranked #3 (64.84) for best other features, including bonus points for Elite-level members, many redemption options and extra rewards points when booking with many car rental agencies.

Radisson Rewards Americas cons:

  • “Very few” destinations compared to other hotel rewards programs
  • Points expire after 24 months of account inactivity
  • Higher status levels require many nights booked

4. Choice Privileges

Ranked #4 (63.00) for best rewards value. “Some of the biggest strengths of Choice Privileges are a wide range of points redemption options, status levels that are relatively easy to qualify for and few earning limitations,” says the report.

Cons of the rewards program:

  • Points expire after 18 months of no account activity
  • Only one co-branded credit card
  • Operates in “far fewer” foreign countries than competitors

5. Hilton Honors

Ranked #5 (55.88) for earning policies. “Some of Hilton Honors’ greatest strengths, which make the program worth joining for just about any traveler, include lots of bonus points for elite-level members, numerous redemption options and few limitations on earning rewards,” says the report.

Cons of the rewards program:

  • Points expire after only 12 months of account inactivity
  • Earning rates vary by the type of Hilton property
  • Elite status is difficult to earn without Hilton’s co-branded credit card