Loyalty programs promise free flights and hotel nights. The reality is more complicated—some programs deliver exceptional value while others are barely worth the signup. Here's how to separate winners from losers.
The Value Equation
A loyalty program is only valuable if:
- You earn points at a meaningful rate
- Points can be redeemed for things you actually want
- The value per point is reasonable
- Points don't expire before you can use them
Many programs fail on one or more of these criteria.
Hotel Programs: Tier Ranking
Worth Your Time
Marriott Bonvoy: Massive footprint with properties at every price point. Points are easy to earn and use. Elite status provides meaningful benefits. The sheer number of properties means you can almost always find an option.
Hilton Honors: Generous point earning on credit cards. Easy to achieve mid-tier status. No blackout dates on standard awards. Points value is lower than Marriott but easier to accumulate.
IHG One Rewards: Underrated program with reasonable redemptions. Good for budget properties when you need a reliable option.
Situationally Valuable
Hyatt (World of Hyatt): Best value per point, but limited footprint. Excellent if Hyatts exist where you travel; useless if they don't.
Generally Not Worth It
Most independent hotel programs offer points worth less than 0.5 cents each. You'd be better served by credit card cash back.
Airline Programs: What's Worth What
Best Value Domestic
Southwest Rapid Rewards: Points have consistent value (about 1.4 cents). No change fees. Family-friendly policies. Excellent for domestic US travel.
JetBlue TrueBlue: Simple earning and redemption. Points pooling for families.
Best Value International
United MileagePlus: Extensive partner network. Reasonable partner award costs. Star Alliance access.
American AAdvantage: Oneworld alliance provides good partner options. Valuable for Asia and Australia access.
Most Overrated
Delta SkyMiles: High earning rates but poor redemption values. Dynamic pricing makes point value unpredictable. Often called "SkyPesos" by frequent flyers.
Transferable Points: The Smart Choice
For maximum flexibility, transferable point programs beat airline/hotel loyalty:
- Chase Ultimate Rewards: Transfers to United, Southwest, Hyatt, and others. Excellent value.
- Amex Membership Rewards: Wide transfer partner network including Delta, British Airways, Hilton.
- Capital One: Growing program with good transfer options.
These programs let you choose where to use points rather than being locked into one ecosystem.
Elite Status: Is It Worth Chasing?
Status benefits typically include:
- Room upgrades (when available)
- Late checkout
- Welcome amenities or points bonuses
- Lounge access (top tiers)
Status chasing makes sense if:
- You travel frequently anyway
- Your travel patterns align with one chain/airline
- You value the specific benefits offered
Status chasing doesn't make sense if:
- You're spending extra to earn status
- You'd stay at better properties without loyalty constraints
- You travel too infrequently to benefit
The Concentration vs. Diversification Debate
Two schools of thought:
Concentrate: Put all stays/flights with one program. Reach elite status faster. Simpler to track.
Diversify: Book the best option each time regardless of loyalty. Potentially better deals, no status benefits.
Budget travelers often benefit from diversification—the best deal rarely aligns with your loyalty program. Frequent travelers benefit from concentration.
Don't Let Loyalty Cost You Money
The biggest mistake: paying more to earn points. If a Marriott costs $150 and a comparable independent hotel costs $100, staying at Marriott for points is usually poor math. The points earned rarely offset the price difference.
Loyalty programs work best as a tiebreaker, not the primary decision factor.