Originally Posted by
Oxon Flyer
Other than the increase in C&P rates, some SPG members, particularly in the UK, have been hit with an additional “devaluation” as the USD cash component has increased in price by about 20% due to the step change in exchange rates.
That said, if you can find C&P availability, there’s still a sweet spot in high season at, for example, a cat 5 property where the points rate increases from 12,000 to 16,000 a night, and cash rates are north of USD500. C&P rates don’t increase in high season, so 6,000 + USD110 is good value.
Correct this is a good example of using C&P where you have high season awards nights. The C&P doesn't increase, however the award nights do. Good point and usually I just use points for the cash price value of starpoints for the difference in C&P and awards is not high enough for me.
1 3,000
2 4,000
3 7,000
4 10,000
5 12,000-16,000
6 20,000-25,000
7 30,000-35,000
C&P
1 1,500 + $30
2 2,000 + $35
3 3,500 + $55
4 5,000 + $75
5 6,000 + $110
6 10,000 + $180
7 15,000 + $275
OK so taking out the fifth night free/high season/reduced weekend on cat 1 and 2 here are the prices (cents per point) SPG is selling to you to use C&P instead of all points for award nights. BTW the lower the better.)
1 $30 for 1.5k points = 2 cents per point
2 $35 for 2k points = 1.75 cents per point
3 $55 for 3.5k points =1.57 cents per point
4 $75 for 5k points =1.5 cents per point
5 $110 for 6k or 10k points = 1.83/1.1 cents per point
6 $180 for 10k or 15k points = 1.8/1.2 cents per point
7 $275 for 15k or 20k points = 1.83/1.38 cents per point
So as you can see this just gives you the cost you are paying per starpoint to use cash and points over all awards. The sweet spot is Cat 5-7 during high season. However there are other considerations that skew this:
1. You have to pay taxes most often on the cash price in C&P (none for awards, although some resorts may charge a resort fee still). This addition can be significant depending on the country/city you are redeeming. Don't discount this savings in some countries with a tax+service charge can be 20-30% of the room rate. Award stays will not have this (sans some resort fees perhaps if applicable).
2. When you use all points you get the 5th night free which is the best deal going for SPG point value most times.
3. On weekends Cat 1/2 charge 1k points less for award redemptions, thus it is terrible value to use C&P on weekends for Cat 1/2 properties.
4. You don't earn starpoints on the cash portion of the C&P price.
5. There are capacity controls for C&P whereas award stays are any basic room it is open.
6. Although C&P does earn elite credit they don't count for promos (same for award nights).
7. Can't use at all suite properties, whereas you can use award nights for an increased number of starpoints.
Thoughts?