If you’ve been collecting points and miles for a while, you may know that the rules can change overnight.
The good news is that you are not necessarily powerless. Comprehension why devaluations occur and what to do when they are announced can protect you and the value you can get from your points and miles.
Here’s everything you need to know.
Related: What Hilton’s CEO says about devaluations, new elite status and personalized stays
What is a devaluation?
A devaluation occurs when a loyalty program increases the cost (i.e., the number of points or miles) required to book an award, introduces additional fees (or increases existing fees), or restricts availability, perhaps to a particular airline or fare class, without any corresponding increase in what you receive. This means that the same redemption that cost you 70,000 points yesterday may cost you 80,000 points today, and there’s nothing you can do about it once the change goes into effect.
Respectful and considerate programs will give members at least 30 days’ notice before devaluing their program.
However, programs are not required to provide advance notice. Unfortunately, many devaluations go into effect without warning.
Related: Emirates restricts first class award tickets to elite members
Why are devaluations happening right now?
There is no real pattern to when and why programs become devalued; However, right now, rising jet fuel costsLinked to global geopolitical instability, along with other inflationary pressures, are pushing airlines to extract more revenue from their loyalty programs rather than giving away these “free” points.
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In just the last few months we have seen several programs announce devaluations, including:
- Air Canada airplane: The program increase the cost of reimbursement rates for many partners up to 33% for reservations made after June 1.
- Avianca Lifemiles: This lesser-known program, a long-time favorite for discounted premium cabin awards on Star Alliance Airlinesrecently increased the cost of business class flights from the US, particularly the Northeast, to Europe from 80,000 miles each way to 92,400 miles each way (after increasing from 69,000 miles to 80,000 miles in 2025).
- Hyatt World: May 20 136 Hyatt hotels are changing categoriesAs a result, the cost increased by 82%. The move to five pricing tiers, also on May 20, means peak nights at higher-category properties can now cost up to 75,000 World of Hyatt points per night, up from a previous limit of 45,000 points.
- Virgin Atlantic Flight Club: Surcharges for granting transatlantic refunds have been increased twice in less than a year. Upper-class passengers departing for the United Kingdom now face surcharges of about $700 each way, an increase of more than $200 compared to rates a year ago.
What can you do if your favorite show is devaluing right now?
If a program you use decides to devalue, you’ll hopefully notify members so they can lock in redemptions at current rates. For example, if you’re interested in Hyatt redemptions, it’s a good idea to book them before May 20, as there’s a high chance that the price of your favorite World of Hyatt property will increase, at least some nights, for reservations made from May 20 onwards.
However, if your program is devalued without notice, or you miss the advance notice deadline, consider switching to a different transfer partner when transferring points and miles from credit cards, at least for flight bookings. For example, if Avianca Lifemiles suddenly becomes too expensive for Star Alliance bookings, try Air Canada Aeroplan.
Related: Why I just redeemed 402,000 points for Hyatt stays and which hotels I spent them on
What can you do to protect yourself from future devaluations?
While devaluations are unfortunate, it is best to accept that they will occur from time to time to avoid being completely shocked when they occur. Just like the cash in your wallet, the value of your points and miles is unlikely to be any more than it is now. Therefore, it is a good idea to redeem your points and miles as you earn them instead of saving them for a redemption far into the future.
Also remember that collecting transferable rewards is a sensible way to protect yourself from these devaluations. You can keep these points and miles in your credit card accounts until you’re ready to redeem them immediately (keeping in mind that you don’t have to accumulate them forever), rather than having points or miles in an airline or hotel loyalty program that can then devalue, perhaps without warning.
In a nutshell
Devaluations are an unfortunate reality when it comes to earning and redeeming points and miles, and the current wave of unpleasant news may not be the last this year.
Your best protection is flexibility: keep your rewards in transferable currencies for as long as possible, act the moment a devaluation notice arrives, consider changing programs if devaluations come without warning, and always have a specific redemption in mind before transferring your points and miles.
Programs that treat their members well usually give notice. When they do, act accordingly.
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