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.

To make the programs more transparent, USA TODAY compared some key terms and benefits of the InterContinental, Hilton, Hyatt, Starwood hot and Marriott mar programs. The comparison showed that each program has its strengths, and there's no apparent clear-cut champion. InterContinental, for example, has 4,046 hotels in its Priority Club Rewards program — a bigger number than any other program. But Starwood's Preferred Guest program has hotels in more countries — 95 — than any other program.

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.

For a free night at Hilton's exclusive hotels, guests must spend at least $2,667. That expenditure is less than competitors' programs require members to spend for a complimentary room at their exclusive hotels.

Starwood, Hilton and InterContinental have no blackout dates, and Starwood and Hilton say they do not limit the number of free rooms available. Starwood's unlimited free room policy doesn't apply to suites, and Hilton's unlimited policy applies only to standard rooms.

Members of some hotel programs forfeit their accumulated points if they don't have regular activity in their accounts. Besides staying at a hotel and earning points, many members earn points and keep accounts active by using a credit card affiliated with a hotel company.

Points accumulated in Hilton's program expire after 15 months of account inactivity. In the Starwood program, points expire after 12 months of inactivity. Points do not expire in Hyatt's Gold Passport and InterContinental's programs.

Frequent business traveler Michelle Tate, of Eden Prairie, Minn., is enrolled in many frequent-guest programs but says she mostly uses those of Hilton, InterContinental and Marriott. She says her favorite is InterContinental's, because it often runs promotions for double points or double airline miles, and it's easy to redeem points online.

Besides redeeming points for free hotel stays, points in Priority Club and some other programs "can be redeemed for a ton of different merchandise," says Tate, an auditor in the insurance industry. "It's great for shopping for Christmas gifts."

InsideFlyer magazine, a publication for frequent-flier and frequent-guest program members, and its website, insideflyer.com, are other resources for comparing hotel and airline programs.

In April, InsideFlyer named Marriott Rewards the top hotel frequent-guest program for the Americas and other continents in 2007. InsideFlyer said Marriott Rewards has "the best flexibility and value."

But it wasn't a slam-dunk. InsideFlyer also extolled the virtues of other hotels' programs in the Americas. InterContinental's club was cited for the best elite-level program — a program for very frequent guests — and best award-redemption policies, best bonus promotion and best website.

Starwood's Preferred Guest was cited for the best credit card affiliated with a frequent-guest program. Starwood's program also won five awards outside the Americas, and Hyatt won an award for best bonus promotion for Asia and Australia.

Spear, who is enrolled in the programs of Hyatt, Marriott, Starwood, InterContinental and Hilton, says he doesn't have "any major gripes" with them and is reaping the benefits. He cashed in points this year for stays in Arizona and Aruba and plans to use more for a Hawaiian vacation next summer.