Originally Posted by
AndyKehn
You can buy IHG pts for 0.5 cpp, so anything more than that is a good use of pts considering the constant devaluation due to dynamic pricing.
Not necessarily, I'd argue.
For example, it depends on the earning of a regular cash stay, too. Through targeted as well as non-targeted promos, 5k per night on a $100 rate is still possible sometimes (despite Accelerate being gone). I'd rather book for $100 ai and earn 5k points rather than spend, say, 20k points. You'll also earn cashback whenever you don't go for the award option.
There are other factors. Let me just give one further example in which your rule of thumb fails IMO. Suppose I have the option to book an HIX cash, pay $120 and earn a mere 2k points or book an award at that HIX for 20k points. According to your rule of thumb, we should redeem. But what if the new and shiny Hampton by Hilton across the street is either $120 or 15k Hilton points? I'd sure use Hilton points which seems like the better deal.
Or if the Hampton was just $65, I'd book it using cash! In fact, there's an argument to be made that if the Hampton is equivalent to the HIX and costs a mere $65, the value you'd get out of redeeming 20k IHG points for the HIX SHOULD be based on the lower cash rate of the Hampton!
Many bloggers propose using a rule of thumb based on a "value" threshold that is just very flawed in its construction. Don't follow such a questionable rule IMO.