Tuesday, August 13, 2013

Hertz To Increase Award Prices October 1, 2013

In light of rising costs, we find it necessary to implement our first reward redemption point increase since 2008.  Beginning October 1, 2013, point redemption levels for Rewards will increase a modest 10-15% in the United States.

I appreciate the letter from Hertz Gold Plus Awards announcing the pending awards program change.  Advertising changes well in advance puts Hertz in the top 5% of travel companies (plus Starbucks) because most programs announce changes on short notice or after the fact.  I am interested to know what the new award chart will look like and that is something that should be included, but 10-15% points inflation isn't frightening.  Hilton points lost up to 50% of their value earlier this year, so most program changes pale in comparison.  Hertz also included a tease of new value to soften to blow: 

We will be enhancing reward redemption options with new locations and expanded choices.

I'm a strong proponent of new awards, even if they don't maximize potential points value.  More options benefit the consumer and versatility has a strong value on its own. Besides, the best value for points isn't on an award chart, but the value of dreams.  Miles and points programs bring otherwise unattainable dreams within reach, even if the dream trip isn't taken.  Bora Bora or Baltimore, it's fun to dream and know points can make it a reality.

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