[CONFIRMED] Points and Cash Devaluation Coming 1 November?
#31
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#32
Join Date: Jul 2010
Location: PHL
Programs: Hyatt Globalist, Hilton Diamond, AA Gold, FB Gold, ITA Volare Executive
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I just made a few P+C bookings in the last week. When you can find them, they can be a tremendous value. So far be it from me to say that this doesn't sting. It stings. I said it.
This said, the saving grace is that after WoH rolled itself out in get-rid-of-everybody mode, they totally relaxed in letting points bookings count toward status. Points bookings did not count toward status under either the old Hyatt Gold Passport program or the original version of WoH. P+C were crucial to me under Hyatt Gold Passport. But, now that points-alone bookings count toward status, this gutting of P+C is less painful.
It stings. It's not crippling.
This said, the saving grace is that after WoH rolled itself out in get-rid-of-everybody mode, they totally relaxed in letting points bookings count toward status. Points bookings did not count toward status under either the old Hyatt Gold Passport program or the original version of WoH. P+C were crucial to me under Hyatt Gold Passport. But, now that points-alone bookings count toward status, this gutting of P+C is less painful.
It stings. It's not crippling.
#33
Join Date: Jan 2008
Posts: 3,578
Yeah it's a definite negative if true, which I'm sure it is. Is it devastating? No. It basically will be the end of points and cash. Hyatt has an irritating habit of gutting things so that they are effectively useless, instead of just abolishing them...like the brg. I suppose there could be some rare times where half the cash rate plus the points could be an equal or better value than how it is now, but i doubt it'll be a lot.
Last edited by antonius66; Oct 20, 2018 at 8:56 pm
#35
Join Date: Sep 2002
Location: Thousand Oaks, Ca., USA
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just booked points plus cash for GH Kauai. Going rate is $559 (about 10 % less with senior discount)
i save $409 for 12,500 points after accounting for the $150 copay. . 3.27 cents per point. Without cash and points it would be
2.24 cents per mile. This is a typical redemption for me.
The purchase of points implicit in this is 12.5k points for $150, a cost of 1.2 cents per mile.
if you want, you can fine tune the math by reflecting the lost points from not paying cash, but still comes out to more than double the estimate of 1.5 cents per point.
Thats the price below which I BUY points, not the strike price for cashing points. A common mistake made by many bloggers.
This is a ton of value going away.
#36
Join Date: Feb 2000
Posts: 6,546
the only logical comparison is the cost of full points vs. points+cash.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
#37
Join Date: Jul 2000
Location: Manhattan NV
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#38
Join Date: Sep 2002
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How so?
i don’t pay resort fees. Even if I did, the math would still work out to the same redemption value is resort fee would be paid in both instances still leading to the same $savings for 12.5k miles.
And if you do it after taxes, you save even more money as the C+P tax is around $22 and the cash rate tax is $84
And then I also save parking on cash and points (and pure points) Even though I think they are going beyond when waiving parking on C+P so not fair to count it (although it’s been consistently waived in the 3 times I had a car with me)
i don’t pay resort fees. Even if I did, the math would still work out to the same redemption value is resort fee would be paid in both instances still leading to the same $savings for 12.5k miles.
And if you do it after taxes, you save even more money as the C+P tax is around $22 and the cash rate tax is $84
And then I also save parking on cash and points (and pure points) Even though I think they are going beyond when waiving parking on C+P so not fair to count it (although it’s been consistently waived in the 3 times I had a car with me)
#39
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Join Date: Aug 2011
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the only logical comparison is the cost of full points vs. points+cash.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
But I've learned not to bother enlightening people about how their 10 cent per mile/point "valuation" is just a fallacy.
#40
Join Date: Mar 2015
Location: NYC/ EWR/ PHL
Programs: UA Platinum, Hilton Gold, Hyatt Discoverist, Marriott Gold, IHG Platinum
Posts: 2,211
Still a Blow
While not the end of the world, and hopefully no further devaluations coming down the pike, regardless, it's still a blow, as it allowed those short on points to stay at properties with high paid rates
Last edited by MarkP24; Oct 22, 2018 at 3:19 am Reason: Clarification
#41
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the only logical comparison is the cost of full points vs. points+cash.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
#42
Join Date: Sep 2002
Location: Thousand Oaks, Ca., USA
Programs: AA Lifetime Plat; Bonvoy Titanium Lifetime Elite;Hyatt Globalist; HHonors Diamond; United Silver
Posts: 8,315
the only logical comparison is the cost of full points vs. points+cash.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
And there are examples where all points would deliver a redemption value lower than 1.5 cents but C&P redemption above that.
Not true that cash cash is always either better or worse than both options.
clearly if you had an infinite # of points, points would always be better.
But with the large but finite amount I have (in UR currency), it’s the difference between 4 weeks of redemptions, (700k at cat 6) vs 8 weeks. 4 weeks is about 1.33 years worth, so I will run out relatively quickly given my hyatt point earnings per year.
And cash redemption value is always a valid number if you are willing to pay the cash price.
#43
Join Date: Feb 2000
Posts: 6,546
if you are WOH points constrained, this devaluation only means that you've lost an easy way to buy more points for ~$0.013 each.
so, let's assume you would normally buy 50K points/yr using the points+cash method at the $0.013 rate or $650 total.
now, you instead buy these 50K miles directly from WOH during their annual 40% bonus period at the rate of $0.017 or $850 total.
the devaluation costs you $200 a year.
cash rates irrelevant.
so, let's assume you would normally buy 50K points/yr using the points+cash method at the $0.013 rate or $650 total.
now, you instead buy these 50K miles directly from WOH during their annual 40% bonus period at the rate of $0.017 or $850 total.
the devaluation costs you $200 a year.
cash rates irrelevant.
#44
Join Date: Sep 2002
Location: Thousand Oaks, Ca., USA
Programs: AA Lifetime Plat; Bonvoy Titanium Lifetime Elite;Hyatt Globalist; HHonors Diamond; United Silver
Posts: 8,315
if you are WOH points constrained, this devaluation only means that you've lost an easy way to buy more points for ~$0.013 each.
so, let's assume you would normally buy 50K points/yr using the points+cash method at the $0.013 rate or $650 total.
now, you instead buy these 50K miles directly from WOH during their annual 40% bonus period at the rate of $0.017 or $850 total.
the devaluation costs you $200 a year.
cash rates irrelevant.
so, let's assume you would normally buy 50K points/yr using the points+cash method at the $0.013 rate or $650 total.
now, you instead buy these 50K miles directly from WOH during their annual 40% bonus period at the rate of $0.017 or $850 total.
the devaluation costs you $200 a year.
cash rates irrelevant.
i just said I do it 21 nights a year, 262.5k points a year. Now we are over $1000 if Hyatt would sell me that many. Is there a cap on the annual sale? If so, then cash price is relevant for sure.
#45
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Join Date: Dec 2003
Location: LAX
Posts: 10,909
My math is different.
just booked points plus cash for GH Kauai. Going rate is $559 (about 10 % less with senior discount)
i save $409 for 12,500 points after accounting for the $150 copay. . 3.27 cents per point. Without cash and points it would be
2.24 cents per mile. This is a typical redemption for me.