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This past week, Hilton sent letters (with both Hilton HHonors and American AAdvantage logos in the letterhead) to certain AA frequent flyers. The letters say, in part,

Congratulations. As a valued member of the American Airlines AAdvantage program, you’ve been selected to receive two great offers from Hilton HHonors.

Enjoy Gold VIP status. You’ll be treated to an elite level of perks reserved for our favorite guests. These benefits may include HHonors bonus points, a room upgrade, breakfast, snacks or other amenity.

Earn 25,000 HHonors bonus points. After completing four qualifying stays by May 15, 2010, you’ll earn 25,000 bonus points to use towards free nights.

Attached to the letter is a HHonors Gold card that expires in March, 2011. In a FlyerTalk thread on the topic, some AAdvantage members report offering 35,000 or 50,000 bonus points and various dates for their accrual.

My wife got one of these letters, and I’m annoyed. She’s an AAdvantage Gold member (or at least she has been… her membership expires at the end of this month).

I’m not annoyed because I didn’t get one. I already have Gold status with Hilton. Actually, the fact that I have Gold status is the reason I’m annoyed.

Based on the response on FlyerTalk, it seems that many many AAdvantage members (including some of them who don’t even have elite status with AA) received this offer. Hundreds, probably thousands. I can’t help but think that this is a further devaluation of the HHonors program.

Some people are Gold members with Hilton because they actually fulfilled the program requirements (16 stays or 36 nights in a year). I earned Gold status by successfully completing a challenge (four stays in 90 days).

That's the funny thing. I'm an EXP on American, and I stayed around 55 nights in hotel rooms last year. My wife flew 18,000 miles and stayed three nigts in hotel rooms. I did the challenge so I could get status. If my wife does the same thing — four stays in 90 days — she’ll not only have Gold status, but she’ll have an extra 25,000 points to show for it. (In fact, her four stays will be arguably easier than mine, seeing as she got the Gold status before completing those stays.)

Hilton’s program isn’t great. In fact, with the tougher redemptions and lack of promotions, I’d say it’s a downright crappy program. But I can say that in my three four Hilton stays since becoming Gold, I’ve really felt a difference at Hilton properties. My status is recognized by hotel staff, and I’ve been offered generous room upgrades and other perks. In other words, I’ve been made to feel like my status is worth something, and that my business is worth something to the company. By giving away mid-tier status (and lets be honest… Gold is basically top-tier status since Diamond doesn’t really get you much more), Hilton is basically sending the message that being an elite member in their program isn’t worth much to them. It’s worth so little, in fact, that they’ll just give it away to random AA flyers who didn’t even request it.

This may be a good business move for Hilton because all these random recipients of Gold memberships may be more willing to stay with them. But in the long run, it seems like this move is a nice way to alienate those of us who earned Gold status the hard way (by challenging in!) or the really hard way (16 stays or 36 nights, which, come to think of it, isn't so hard). Those are the people who spend the big bucks, and the chain should do more to keep them happy.

For my wife and me, this can’t hurt… We might find a way to go for those bonus points and put them to good use. But in the big picture, I’m not feeling so happy about Hilton these days, and I’m feeling more and more inclined to take my business elsewhere.