In 2003, Priority Club Rewards broke out from its relative obscurity and charged to the forefront of business travelers' affection, as witnessed by the six shiny new Freddie awards that now rest comfortably at the company's headquarters.

Though Priority Club Rewards had certainly made respectable showings in the past at the Freddie Awards, last year's results marked a dramatic improvement. So, to what should we attribute this sudden rise in popularity? That remains unclear. The program has not undergone any major changes of late, nor have its competitors greatly devalued their own programs.

Perhaps the answer lies in the fact that in a sluggish (if improving) economy, business travelers have placed a higher premium on value than ever before. Money is too tight to spend in huge quantities for royal perks, but travel is too taxing to deal with endless nights at bargain-basement hotels.

Priority Club, with its wide array of brands and 3,500 properties, appears to have struck a solid middle ground.

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InterContinental Hotels Group (IHG) has grown considerably since 1946 when Pan American Airways decided to build hotels along its flight routes to provide quality lodging for the airline's crew and staff. The first hotel, the Hotel Grande, was opened in Belem, Brazil and the hotel group now operates over 3,700 properties worldwide. Members clearly appreciate the frequent guest program as shown by Priority Club winning the Program of the Year Freddie Award for the past two years.

Earning

Members can choose to earn either miles or points and members earn 10 Priority Club points for every $1 spent on eligible charges at Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express and Express by Holiday Inn. At Staybridge Suites and Candlewood Suites, members earn five points for every $1 spent and at InterContinental Hotels and Resorts, members earn 2,000 points per stay. Members who choose miles instead of points can earn miles with 36 airlines worldwide; earning rates vary by airline and hotel but the average offer is 500 miles per stay. Participating U.S.-based airlines include Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines, United Airlines and US Airways. At partner ANA Hotels in Japan, points earned vary between 600 and 2,000 points.

IHG introduced a new Meeting Rewards program for meeting planners and members earn three points for every dollar spent on qualifying meetings at hotels in the U.S., Canada and Mexico. Enrolled meeting planners who host one qualified meeting will be offered Gold elite status and Platinum for hosting two in a calendar year.

Priority Club has a wide range of partnerships and members can earn points with a Visa credit card, for renting cars, purchasing flowers and gifts, using financial services and obtaining a cell phone plan, among other activities.

Award choices..

Award stays are on par with the industry and start at 10,000 points for a stay at Holiday Inn Express and Express Holiday Inn hotels. Candlewood Suites are 15,000; Staybridge Suites are 20,000; Crowne Plaza Hotels & Resorts and Hotel Indigo are 25,000; Nickelodeon Family Suites by Holiday Inn are 27,500 points; Partner ANA hotel redemptions start at 20,000 points and InterContinental Hotels & Resorts range from 30,000 to 40,000 points. A good value are the PointBreaks awards available for 5,000 points per night which were introduced this year. These are limited to select locations and while you may not find your desired destination offered, you might find a reason to stay in Great Falls, Mont. or Bloise, France to get a great deal.

Pre-paid lodging cards are available from 29,000 points for $100 to 59,000 points for $250 and can be used to pay for hotels stays worldwide anywhere American Express is accepted. Members can redeem points for golf equipment, apparel and accessories at the Golf Pro Shop or brand merchandise from 7,650 points for a travel gym set to 594,000 points for a Panasonic 42" plasma TV set. CD redemptions start at 5,000 points and DVDs start at 7,500 points. Members can donate points in 10,000-point increments to charities such as American Red Cross, UNICEF and Habitat for Humanity. Members can also use points to bid on auction items, such as tickets to sporting events and professional sports merchandise.

Through Priority Club Meeting Rewards, members can redeem points for Meeting Credits with a value between $250 and $1,000 that can be used to pay for future meetings.

Retail, dining and travel certificates start at 18,000 points for a $50 certificate to retailers such as Eddie Bauer, Target or Applebees. Members can redeem points for airline miles or points with 36 airlines. Most conversions offer 2,000 miles for 10,000 points.

Car rental awards with Hertz begin at 9,000 points for one weekend day in the U.S. and end at a prestige collection rental for seven days in the U.S. for 150,000 points. And if you still can't find an adequate award and have at least 50,000 points, you can ask for a personal shopper to determine the amount of points needed for just about anything you want.

Partnerships!

Priority Club offers a Rewards Visa and a Rewards Platinum Visa Business card. The credit cards offer 15,000 bonus points after first purchase and an additional 10,000 bonus points when $15,000 is spent annually (15,000 points after $20,000 spent on the business card). Purchasing stays at InterContinental hotels will net three points per dollar spent and cardmembers receive one point per dollar spent on all other purchases. Cardmembers automatically receive Gold Elite status and the low $29 annual fee is waived for the first year on both cards.

Hertz is the only car rental partner and members earn 125 points per day on rentals; and until Dec. 31, 2007, members earn double points at participating locations.

Members can earn points for dining at participating Rewards Network restaurants or buying flowers, gifts and shopping online through Priority Club Rewards Shopping. You can also earn points with Lending Tree for buying, selling or refinancing your house and 5,000 points for every 10,000 borrowed with Chase Home Equity (maximum 30,000 points). Members earn up to 27,000 points for banking with NetBank and up to 20,000 points for purchasing a cruise or signing up for cell phone service with T-Mobile. You can also get 1,000 points for subscribing to USA Today or receiving an insurance quote from Sentry Insurance. You can convert 1,000 Membership Rewards points into 1,000 Priority Club points and 1,250 Diners Club points into 1,500 Priority Club points

Crappy elite program

Priority Club Rewards Gold membership will be given to members who stay a minimum of 15 nights or earn at least 20,000 points during a calendar year. Gold members receive priority check-in, 10 percent bonus points and exclusive customer service phone number. Gold elite membership can also be purchased for $50.

Members who stay a minimum of 50 nights or earn at least 60,000 points receive Platinum membership. Platinum members receive complimentary room upgrades, guaranteed room availability with 72-hour advance notice, 50 percent point bonus and an exclusive phone line.

The number of stays required to qualify for elite status is about average, higher than Marriott and Hilton but less than Starwood. Unlike the other programs, earning elite status isn't limited to number of stays; you can also reach elite status based on the number of earned points. Or as mentioned, you can simply buy a Gold membership for $50 or obtain the credit card.

And rules...

Awards can be issued in someone else's name and pre-paid lodging cards can be sent as gifts. Points do not expire. To purchase points for yourself or gift them, you can buy points in 1,000-point increments with a maximum of 20,000 points. The cost decreases the more you buy and from 1,000 to 5,000 points costs $12.50 per 1,000 points; 6,000 to 9,000 costs $11 per 1,000 points; 10,000 to 20,000 is $10 per 1,000 points. You can transfer points in 1,000-point increments for $5 per 1,000 points transferred.

Service, support and online

When we called, our inquiry was answered promptly and the customer service representative was courteous and knowledgeable. Readers have similarly reported that service is responsive and quite good.
Priority Club's award-winning Web site is well-organized, quick loading and members can conveniently purchase, transfer and redeem points for most awards online, including partner awards. You can also enroll in the program and view your account online. Recently added is a new e-bill feature and you can view and print your hotel bill from your account page.

Other

Priority Club offers frequent point promotions, like the Freddie Award-winning bonus where members earned double points or miles on every stay starting with their second stay. Members frequently say that they can quickly accumulate points through the many promotions and bonus points count towards elite status, unlike other programs. The discounted 5,000 PointBreaks award redemption is also a valuable offer.
Members were not given advance notice about the increase in points required for stays that went into effect earlier this year when point requirements went up as much as 33 percent in some instances. Programs often change their award charts, but notifying members of the changes is a good idea and helps soften the blow. Elite members report that the lack of consistent room upgrades devalues their elite membership.