View Single Post
Old Sep 7, 11, 1:40 pm
  #127  
pinniped
A FlyerTalk Posting Legend
 
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LTPP, HH Diamond
Posts: 45,765
Am I the only one struggling with the idea of doing hotel transfers to generate hits? These can be expensive hits.

Using the rates from the OP. My value are 1.75 cpm for US Airways, based on my usual use for them to redeem R/T's to Canada on routes that would be expensive from my origin. My values for each hotel currency are based upon my normal use for each - either a recent redemption or a reservation I'm currently holding, always benchmarked against what I'd realistically spend for a hotel in that situation if I didn't have hotel points. In general, I'm conservative on these...erring downward slightly to account for the time-value of money.

HH. My value: 1 cpp. 10,000 HH for 850 US -> My cost for the hit: $85.
Hyatt: My value: 2 cpp. 5,000 HY for 2,000 US -> My cost for the hit: $65
Marriott: My value: 1.6 cpp. 10,000 MR for 2,000 US -> My cost for the hit: $125(!)
SPG: My value: 4 cpp. 850 SPG for 850 US -> My cost for the hit: $19
Priority Club: My value: 0.75 cpp. 10,000 PC for 2,000 US -> My cost for the hit: $37

I'll probably pull the trigger on SPG and Priority Club immediately. Beyond that, I'm going to wait and see a bit. I always knew that burning hotel points for air miles was a bad proposition (until you hit Marriott Travel Package levels) but I don't think I was aware of quite how bad it really was.

My valuations are independent of *how* I get the points: they're based on how I use them. (Yes, I realize that the hotel chains will all sell me a small amount of points for less than I can actually redeem them for. Smart business on their part from a cashflow perspective, but it doesn't really change my math.)

Last edited by pinniped; Sep 7, 11 at 2:59 pm
pinniped is offline  
Reply With Quote