The way Priority Club handles award category changes is truly a huge mess. Other chains release a list of properties that move up/down and you have weeks or couple of months to book at the old rates before the new ones take effect.
This is not, however, the way Priority Club works. You need to book using the new rates and Priority Club deposits points to your account to cover the difference between the new and the old rate.
Now, some may think that they could just book reservations that they would later cancel and just use the points for some award reservations and be able to keep the goodwill points. As a matter of fact, there has apparently been some website advocating people to do just that. Wrong!
As per the above email from a LoyaltyLobby reader sent to me earlier this week illustrates, the information that you get from Priority Club service center can be confusing and contradictory
If you cancel an award reservation that is linked to goodwill points, you will first get all the points deposited to your account. A day or two later you will receive an email like the one above and the goodwill points will have been removed from your account.
If you have used the points for some other award reservation, the Priority Club service center will either cancel or shorten them to claw-back enough points to cover the goodwill deposit(s).
Priority Club really should update the way they handle these award category changes and better train the employees manning the phones.
If you cancel an award reservation that has goodwill points attached to it, the points will be eventually gone and you will get a nasty email from Priority Club.