points and – Misryoum breaks down what devaluations mean in loyalty programs and the practical steps travelers can take to safeguard redemptions.
Airline and hotel loyalty points can lose value with little warning, and that is exactly what travelers are trying to outsmart.
In loyalty terms. a “devaluation” is when a program makes it harder or more expensive to redeem points for the same trip.. This can happen when award charts are changed. more points or miles are required. new fees are added. or access to certain flights or fare types is tightened.. Misryoum notes that the key frustration for members is that the redemption value can shift even though they earned points under an earlier promise.
One important detail: some programs provide advance notice while others do not. That difference matters because it determines whether you can plan around updated redemption costs.
Why does this keep happening now?. Misryoum explains that loyalty programs adjust their pricing strategies as airlines and travel businesses face changing operating pressures.. When providers need to generate more revenue from awards rather than treat points as a fixed cost. redemptions often become less generous. sometimes shortly after program and pricing updates are announced.
Meanwhile. travelers are seeing real-world examples of devaluations across multiple loyalty programs. from higher redemption requirements for partner flights to category changes in hotel programs and increased award surcharges on certain routes.. The pattern is consistent: the “same” experience may demand more points once a new policy takes effect.
This is where timing becomes a travel strategy. If you already know which hotels or routes you want, your best defense is to stay alert and be ready to book when a program signals changes.
If your preferred program announces an update with a lead time, Misryoum recommends using it to your advantage.. Locking in the redemption you want before the effective date can prevent you from paying the higher rate later.. If the program changes without warning. a practical workaround is to reconsider where your flexible. transferable rewards are heading when you redeem—especially if flight bookings are your main goal.
Looking further ahead, the strongest long-term protection is flexibility.. Misryoum suggests redeeming points and miles more regularly rather than letting them sit for long periods. and keeping rewards in transferable forms when possible so you can move quickly when prices shift.. In this context. having a specific trip in mind before transferring can reduce the risk of chasing value after the fact.
Bottom line: devaluations are an unfortunate reality, but they do not have to catch you completely off guard. Misryoum says the best approach is to stay adaptable, act quickly when policy changes appear, and prioritize flexibility so your points and miles still serve your travel plans.