Status: checked against official sources; automated independent review
FREQUENT FLYER GLOSSARY
What is a loyalty currency?
Loyalty currency is the unit of account that an airline, hotel or card loyalty programme credits to a member's account — usually named miles or points — for activity its rules define as eligible, and debits when the member redeems a reward. The programme sets both the earn rate and the redemption price, and American Express states that the value of Membership Rewards points varies according to how the member chooses to use them. [1]
Facts checked: 18 October 2026
Key takeaways
- Each programme issues and administers its own unit and publishes its own earn rate: Membership Rewards one point per US$1 of eligible Card spend, Marriott Bonvoy ten base Points per US$1 at most brands, Hilton Honors ten base Points per US$1 at most brands. [1] [2] [4]
- The redemption price is a programme decision rather than a market price, so the same balance buys different things in different programmes. [1] [2]
- Balances are contractual, not property: American Express, Marriott, Hilton and American Airlines each state that accrued miles or points are not the member's property. [1] [2] [3] [4]
- Moving value between currencies depends on the programme: Membership Rewards points can be transferred to participating partner programmes on irreversible terms, while AAdvantage mileage cannot be transferred to another loyalty programme unless American Airlines expressly states otherwise. [1] [3]
How does a programme issue its own loyalty currency?
A loyalty programme issues currency by crediting units to a member's account for activity its rules treat as eligible, and it debits the same balance when the member redeems a reward. Because the programme keeps the ledger, identical spending can produce very different balances from one programme to the next, and the unit is not a cash claim: Marriott's rules say Points and Awards have no cash value, and American Express says points do not belong to the member. [1] [2]
Card programmes credit points for card spending. As of the October 2026 update of the Membership Rewards Program Terms and Conditions, Card Members earn one point for every dollar of eligible spend on an enrolled Card, and Rewards Checking account owners earn one point for every two dollars spent on the Debit Card. [1] Cash advances and cash equivalents, balance transfers, person-to-person transactions, and fees or interest charges are excluded from eligible purchases. [1]
Hotel programmes credit points per dollar of qualifying hotel spend. Under the Marriott Bonvoy Program Rules (updated October 2026), a member earns 10 base Points per US dollar on Qualifying Charges at most brands, 5 base Points at brands including Residence Inn, Protea Hotels and TownePlace Suites, and 4 base Points at StudioRes; Bonvoy members may also elect to earn the currency of an airline frequent flyer programme, which the rules group together as "Miles". [2] Hilton Honors (effective 15 July 2026) sets 10 base Points per US dollar at most brands, 5 at Homewood Suites by Hilton, Home2 Suites by Hilton, Spark by Hilton, Tru by Hilton, Apartment Collection by Hilton and YOTEL, and 3 base Points plus 3,000 Bonus Points for every ten nights at LivSmart Studios by Hilton. [4]
Airline programmes can split a currency into more than one class of unit. The AAdvantage Terms and Conditions (effective 1 March 2026) distinguish Base Miles, which earn Loyalty Points, from Bonus Miles, which do not earn Loyalty Points; both are treated the same for redemption, and "AAdvantage mileage" refers to both. [3] Base Miles on eligible purchased tickets are calculated on ticket price, while Bonus Miles are typically granted through promotions and through Buy Miles, Gift Miles and Transfer Miles transactions. [3]
| Programme | Unit | Base earn stated in the rules |
|---|---|---|
| American Express Membership Rewards (United States) | points | 1 point per US$1 of eligible Card spend; 1 point per US$2 of Rewards Checking debit spend [1] |
| Marriott Bonvoy | Points | 10 base Points per US$1 at most brands; 5 at listed brands; 4 at StudioRes [2] |
| Hilton Honors | Points | 10 base Points per US$1 at most brands; 5 at listed brands; 3 plus 3,000 Bonus Points per ten nights at LivSmart Studios by Hilton [4] |
| American Airlines AAdvantage | Base Miles and Bonus Miles | Base Miles based on ticket price (base fare plus mandatory carrier-imposed fees); Bonus Miles typically from promotions and Buy, Gift or Transfer Miles [3] |
What can you redeem a loyalty currency for?
The programme's own rules define the reward catalogue. Membership Rewards points can be used through Pay with Points at participating brands or through American Express Travel, for a statement credit (points worth at least $1 must be redeemed), for gift cards, and for a deposit into a linked Rewards Checking or Business Checking account. [1] Marriott Bonvoy members redeem Points for Awards and Award Redemptions as set out in the Program Rules. [2] AAdvantage members redeem miles for travel awards and upgrades, and a ticketed flight award gives one year from the date of ticketing to complete all travel. [3] Hilton Honors members redeem Points for Rewards, including all-Points Standard Room Reward Stays and stays booked as Points & Money Rewards. [4]
Some currencies can also be moved into another programme's currency. Membership Rewards members may transfer points to participating partner loyalty programmes after linking accounts; the partner account must be in the member's name or an Additional Card Member's, and that Additional Card must have been issued at least 90 days before linking. [1] In most cases the minimum transfer is 1,000 points in multiples of 1,000, the transfer usually takes 48 hours to process, and the rate varies by partner. [1]
Why is the same points balance worth different amounts?
American Express says outright that the value of points varies according to how the member chooses to use them, and its own rates show that within a single programme. [1] At the standard rate, 1,000 points buy an $8 deposit into a Rewards Checking or Business Checking account; with a Business Checking account linked to a Business Platinum Card, the first 1,000,000 points redeemed each calendar year buy $10 per 1,000 points, and later redemptions return to $8 per 1,000. [1] Points transferred to a US airline frequent flyer programme also carry an excise tax offset fee that is capped. [1]
Redemption prices move because the programme controls them. American Airlines states that any flight award may be withdrawn or become subject to increased mileage requirements at any time before ticketing [3], Marriott may change Point accrual and redemption rates and redemption levels even where that affects the value of Points [2], and Hilton Honors may change its rules even though changes may affect the value of Points or Rewards [4].
Rules also differ by market. Amex's excise tax offset fee applies specifically to transfers into a US airline frequent flyer programme, and Amex notes that points may be treated as taxable income and reported to the IRS. [1] Marriott's Program Rules carry separate special terms for members with Chinese citizenship residing in Chinese mainland, under which PRC law governs disputes. [2]
What are the limits of a loyalty currency?
- No ownership. American Express says points do not belong to the member, cannot be transferred to someone else's Rewards Account, sold, or passed on through divorce, inheritance or bankruptcy. [1] Marriott says Points and Awards are the Company's sole property and may not be sold, bartered or transferred except as its rules permit, though limited transfers on death or divorce may be authorised. [2] Hilton says accrued Points and certificates do not constitute property of members and are not transferable except as provided, with Mutual Fund points usable by either spouse on the account. [4] American Airlines restricts AAdvantage Rewards and Benefits to the member's personal benefit and use. [3]
- Inactivity forfeiture. Marriott requires Qualifying Activity at least once every 24 months, and gifting, transferring or receiving Points from another member does not count. [2] Hilton requires a stay, points earned through Hilton or a third party source, purchased points, or donated points within 24 consecutive months. [4] American may terminate an account deemed inactive where, among other conditions, there is no mileage earning or redeeming activity for at least 36 consecutive months. [3] American Express points are lost when a Product is cancelled, with 90 days to use them if the cancellation was for inactivity. [1]
- One currency per transaction. Unless American states otherwise, AAdvantage mileage and Loyalty Points cannot be earned for the same flight, hotel stay or car rental under both AAdvantage and another loyalty programme American participates in. [3]
- Programme changes and closure. American Express may change the points needed to redeem a reward or impose caps and fees, and will give at least 90 days' notice before cancelling the programme. [1] Marriott may terminate with six months' notice, after which unredeemed Points are forfeited. [2] Hilton gives members 12 months from the announcement of termination to accumulate Points and redeem a Reward. [4] American may end the AAdvantage programme with six months' notice. [3]
Frequently asked questions
Can you turn one programme's loyalty currency into another's?
It depends on the programme. Membership Rewards points can be transferred to participating partner loyalty programmes once the accounts are linked, but the transfer cannot be reversed and the partner's terms then apply. [1] Unless American Airlines expressly says otherwise, AAdvantage mileage cannot be transferred to another loyalty programme, and mileage from another programme cannot be transferred in. [3]
Do loyalty points expire?
There is no single answer. Marriott forfeits all accumulated Points after 24 consecutive months without Qualifying Activity [2], and Hilton applies a 24-month inactivity test with four listed qualifying actions [4]. American Airlines may terminate accounts for inactivity under its listed conditions. [3]
Who owns the points in an account?
The programme. American Express says points do not belong to the member [1], Marriott calls Points and Awards the Company's sole property [2], Hilton says they do not constitute property of members [4], and American says accrued Rewards and Benefits carry no residual property rights value [3].
Why do 1,000 points buy different amounts of cash-equivalent value?
Because the programme sets each redemption rate separately. Within Membership Rewards, 1,000 points buy an $8 deposit at the standard rate, or $10 with a Business Checking account linked to a Business Platinum Card up to the first 1,000,000 points per calendar year. [1]
What happens to a balance if the programme ends?
Notice periods differ: American Express gives at least 90 days [1], Marriott and American give six months [2] [3], and Hilton gives 12 months from the announcement to accumulate and redeem. [4]
Sources
Sources checked on 18 October 2026. It covers the Membership Rewards programme in the United States, Marriott Bonvoy, the AAdvantage programme and Hilton Honors; other airline, hotel and card programmes, including Delta SkyMiles, United MileagePlus, World of Hyatt and Aeroplan, are not covered here.
- Membership Rewards Program Terms and Conditions, American Express, checked 18 October 2026
- Marriott Bonvoy Loyalty Program Terms & Conditions, checked 18 October 2026
- AAdvantage terms and conditions, American Airlines, checked 18 October 2026
- Hilton Honors Member Rewards Terms and Conditions, checked 18 October 2026