Hotels' frequent-stay plans gain steam as airlines grow stingier

— -- Faced with a weak economy and high travel costs, members of hotel frequent-guest programs are cashing in points for free rooms at a record rate.

Redemptions during the first eight months this year increased more than 14% — "a record pace," says InterContinental spokesman Stephen Boggs. Hilton projects that redemptions this year will be 25% higher than last year.

"Redemptions are growing in leaps and bounds," says Adam Burke, Hilton vice president.

The programs' popularity grows as some travelers become increasingly disillusioned with airlines' frequent-flier programs. Many airlines have instituted changes that make it more difficult for frequent fliers to earn free tickets.

"Hotel programs have not been devalued to the extent airline programs have recently," says frequent business traveler Rich Spear, a management consultant in Cranberry Township, Pa.

Despite the hotel programs' growing popularity, many travelers find it difficult to compare them to decide which one is best for their travel patterns. No program suits the needs of all business travelers, because the best is the one with hotels where you're traveling.

Hilton HHonors and InterContinental's Priority Club require the least amount of money spent at their hotels to qualify for a free night. Spending $500 can land a free night, compared with $750 at Marriott and $1,000 at the other two chains.

Hotel companies require greater expenditures for a free night at their higher-priced hotels. Marriott, for example, sorts its hotels into seven categories, and a different amount must be spent to earn a free night for hotels in each category.