Originally Posted by
TravelinSperry
With IHG you are given a free night. Let's assume the value of that night is $300. So with IHG you pay $49 and get $300 in value plus when you redeem points you earn approx $.01 per point.
I think $300 is a bit much. Let's be more conservative and say $250.
Originally Posted by
TravelinSperry
Let's assume you spend $2,000 per month on your card. This gives you 24,000 points (more if some of your spend is actually at IHG properties). But for simplicity - let's assume it all isn't. That is worth $240 dollars in redemption (+ the $300 free night) for a total of $540 annually.
IHG points are worth 0.7 cents so the value here is $168. With the free night, total value is $418. Subtract the annual fee of $49 and you're at about $370.
Originally Posted by
TravelinSperry
For SPG the same spend gets you 24,000 points but since Starwood points are worth more (about $.03 per point) you get $600 in value. More than IHG - but of course since the annual fee is more ($95) you must subtract that. That makes the SPG card worth $554 in value. So at this spend - about break even without considering the other benefits. Starwood allows you to transfer to Airlines at 1:25 to 1. A nice perk over IHG. And of course if you spend more than $2,000 per month the Starwood card is even better. Now not everyone does and I'll be the first to admit this is a rudimentary analysis. But my point is that you cannot just look at the annual fee. You must look at your spend pattern and then what points are valued at to identify which is better for you.
The value of an SPG point is 2.4 cents. The 1:25 to 1 airline transfer ratio is already baked into the value of the points.
So 24,000 points is worth $576. Subtract the $95 annual fee and you're at about $480.
So Starwood wins this battle. That being said, most people aren't putting 24k spend on a card. They are putting less than 10k. So for most people, it is likely that the IHG is a much better value b/c of the annual free night award.
If you're a big spender, the value of the SPG points will trump almost all points on the market.