Standby4321

My $0.005 per point is my own rule of thumb and it is based on avoided cost. Room tax plays into the equation because it is part of the cost that I am avoiding by redeeming points. Like anyone, I'm happy to get more and I certainly try to do that, but the real point is that I won't take less. If a $100+ room goes for 20K, that MAY work for me -- or I may hang on to my points in hopes of getting a better value. If it's a choice between $90 or 20K points, I'm not redeeming points. What you say about average room rates vs. fixed point redemption requirements is very true. The very same room might be a good point redemption for certain dates and not a good way to use points at another time.

The cost of buying points off the website doesn't fit into the equation for me anywhere. I wouldn't be interested in buying points at the price that is charged because the cost is too high in relation to the value I'm likely to receive, in my view. The only reason to do it would be to pick up a small increment that would make a specific transaction work; in other words, to capture the value from a much larger number of points than what I would actually be buying.

There is no particular reason for anyone to agree with my assessment. Getting $0.01 per point in value or even more is very possible and I've done it -- but I just don't see it as the typical offer out there.

The comparison with miles is apt. I value Northwest WorldPerks miles at 1.5 cents each and I'm not interested in buying them off the website at the cost that is charged for them, which is more than double that. I've done better than 1.5 cents per mile with redemptions sometimes, but again, it's not typical.