FlyerTalk Forums - View Single Post - [ARCHIVE to 2018] American Express Announces Two New Hilton Credit Cards
Old Dec 30, 2018, 7:46 pm
  #1590  
B3nder
 
Join Date: Apr 2011
Posts: 231
Originally Posted by amanuensis
In determining the benefit of something, it is important to keep in mind not just the "list value" value of that benefit, but also the "net value". Take, for example, the resort credit. For that, the list value equals the net value only if a cardholder would have spent the money at the resort anyway even if no rebate offer existed. So if a person got a spa service SOLELY because it was "free" then there is no net value. This is because, to that person the spa service was not really free -- because of the card's annual fee.
Resort credit is good on room rate and taxes, not just overpriced services. However, the qualifying list of resorts is limited. And many of them track on"resort fees" that you must pay if you book the room paying cash (credit card) that you would not pay if you paid with points. For this reason, I would find it hard to value the $250 resort credit at more than $200.

Similarly airline credits, even if converted to gift cards, are at most worth about 85 cents on the dollar to me. Airline gift cards are regularly available from other channels at 10% off of face value. Additionally, you lose the insurance components you would get if you paid for the tickets on a card like the sapphire reserve (which would also give 4.5% rebate) and have to juggle gift card codes. Or on some airlines (Southwest) there are other benefits you lose by paying with gift cards vs with transferred points.
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