Hertz just sent out an email to Gold Plus Rewards members announcing a devaluation. The email is so beautifully phrased that I have to post the whole thing:
Dear _______:
To continue providing exceptional service to our members, we occasionally make changes to the Hertz Gold Plus Rewards® points program. We are pleased to announce that based on member feedback, coming soon we will be enhancing reward redemption options with new locations and expanded choices.
We also constantly strive to maintain industry-leading reward levels and availability. However, 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, Canada, Puerto Rico and U.S.V.I. This will allow us to continue providing both the quality and quantity of reward options our members have come to value and appreciate.
We thank you for your participation in Hertz Gold Plus Rewards and look forward to serving you at a Hertz location soon.
Sincerely,
Elliot Friedman
Division Vice President CRM
The Hertz Corporation
So what have we established? Well, they start the email saying they’re “pleased to announce that based on member feedback” they’ll be making positive changes… in the future… and they’re not giving us any details now.
And then they announce that redemption costs will increase a “modest” 10-15% in the US and Canada on October 1. And that’s obviously because they want to be able to continue to provide the quality and quantity of redemption options that we value.
So yeah, there you have it. In fairness the rental car industry has been somewhat exempt from major devaluations lately (probably because they don’t have co-branded credit cards… yet), so in the grand scheme of things a 10-15% devaluation isn’t the end of the world. But it still stings…
(Tip of the hat to Jeffrey)
Do you know why US residents pay way more to rent a car in the US than residents from other countries? If you are curious just go to any website of Hertz, Avis, National, etc... and make the same reservation as US resident and other country resident. You will be shocked to see the price difference.
The 2008 devaluation was huge and something like a 150% increase for the top end. Previously you could get a 1 week rental in a "Prestige" level car for 5,000 points. After March 1, 2008 it became 7,500 points and their best cars are exempt like the Porsche Panamera, Mercedes AMGs, Audi R8 and Ferraris. It would be nice if they made a new category for those cars.
One of my most memorable redemptions was...
The 2008 devaluation was huge and something like a 150% increase for the top end. Previously you could get a 1 week rental in a "Prestige" level car for 5,000 points. After March 1, 2008 it became 7,500 points and their best cars are exempt like the Porsche Panamera, Mercedes AMGs, Audi R8 and Ferraris. It would be nice if they made a new category for those cars.
One of my most memorable redemptions was 5,000 points for a week in a Hummer H2 on the Big Island Hawaii. At the time rates were about $3,200 / week. We took that thing on the lava trails on the Road to the Sea Beaches and several other unpaved roads there were a lot of fun, though violation of our rental agreement.