How many people here buy points?
Oct 19, 2021, 1:53 pm
#16
Join Date: Jan 2004
Location: MSP
Programs: AA Plat Pto, IHG Plat, HH Gold, Hyatt Globalist
Posts: 2,536
I have from time to time. I am most often in Cat 2 hotels so it doesn't take a huge room rate to make buying the points a net savings over the cash rate. I only buy with an intended purpose in mind and a pretty solid belief the stay will happen. I am missing out on some perks from cash rates doing this but I am not in contention for reaching lifetime globalist spend anyway.
Oct 19, 2021, 2:13 pm
#17
Join Date: Apr 2021
Location: Manhattan, Palm Beach Island, San Francisco, Boston, & Hong Kong
Programs: Lifetime United Global Services, Delta Plat, Hyatt Globalist, Marriott Ambassador, & Hilton Diamond
Posts: 3,165
Also, off topic, but broad diversification is a good strategy for most people but not all people. IMO the only way to make serious money in this world is to either a) take advantage of cheap leverage (Buffet style) b) make contrarian highly concentrated bets (Thiel style)
Oct 19, 2021, 3:57 pm
#19
Join Date: Jul 2020
Posts: 490
The most you can "invest" in Hyatt points purchases per year is about $2500 that's not a huge opportunity cost. It's actually a nice return on investment opportunity if you can find the right situations as I mentioned earlier. I have many examples but one in particular is when I purchased around 70k points for $1300 and spent 5 nights over Christmas week at the Hyatt Place in Keystone in a room that was going for $500 per night. In that example I pretty much made a 100% return on my points purchase. Not all opportunities are that good but I've found it pretty easy to make atleast a 50% return on points purchases vs cash rates. This is part of the reason why Hyatt caps the amount of points purchases that you can make in a calendar year.
Last edited by Tonyr4; Oct 19, 2021 at 4:13 pm
Oct 19, 2021, 4:01 pm
#20
Used to be 'Travelergcp'
Join Date: Jul 2003
Location: New Orleans
Programs: AA Plat, Marriott Gold, Hyatt Globalist
Posts: 2,826
Always and never don’t work in this business. Any currency can be a good deal at a low enough price. But almost certainly not at regular posted prices without a good reason.
There are a million edge cases where it works, though. Especially if you’re a globalist, don’t play corporate rate roulette, and want to park a car for free on an award stay. That’s probably why the annual cap exists.
There are a million edge cases where it works, though. Especially if you’re a globalist, don’t play corporate rate roulette, and want to park a car for free on an award stay. That’s probably why the annual cap exists.
Oct 19, 2021, 4:18 pm
#21
Join Date: Jul 2020
Posts: 490
Always and never don’t work in this business. Any currency can be a good deal at a low enough price. But almost certainly not at regular posted prices without a good reason.
There are a million edge cases where it works, though. Especially if you’re a globalist, don’t play corporate rate roulette, and want to park a car for free on an award stay. That’s probably why the annual cap exists.
There are a million edge cases where it works, though. Especially if you’re a globalist, don’t play corporate rate roulette, and want to park a car for free on an award stay. That’s probably why the annual cap exists.
Oct 19, 2021, 6:06 pm
#22
Join Date: Sep 2019
Location: Los Angeles
Programs: Hyatt Globalist, Hilton Diamond
Posts: 4,854
You are paying an opportunity cost by pre-purchasing points. There are many lucrative opportunities to invest cash and grow that capital. 2020 and 2021 were some of the most financially lucrative years for many people. Conversely, Hyatt points are a currency that cannot be invested and will only inflate over time.
Furthermore, you should factor in the opportunity cost of what points you would have earned on cash bookings. For example, spending 10K points for a $200 room is not a 2 cents / point redemption. For a Globalist with a WoH card, it would be around a 1.6 cent / point redemption.
Finally, WoH points are some of the easiest to acquire (relative to value) given the powerful UR 1:1 transfer.
With all of this being said, pre-purchasing Hyatt points is not strictly terrible (it’s silly to do so right now was we do not fully understand this upcoming peak pricing devaluation). However, most people would probably be better off investing their money into equities/RE/whatever and buying/earning points as needed rather than “investing” in pre purchased points. The limited time promos are not as limited or necessary as most people think.
TL;DR Invest *with* money into things even as simple as broad index funds and the value grows over time. Invest in points and the value will continuously and arbitrarily decrease over time.
Furthermore, you should factor in the opportunity cost of what points you would have earned on cash bookings. For example, spending 10K points for a $200 room is not a 2 cents / point redemption. For a Globalist with a WoH card, it would be around a 1.6 cent / point redemption.
Finally, WoH points are some of the easiest to acquire (relative to value) given the powerful UR 1:1 transfer.
With all of this being said, pre-purchasing Hyatt points is not strictly terrible (it’s silly to do so right now was we do not fully understand this upcoming peak pricing devaluation). However, most people would probably be better off investing their money into equities/RE/whatever and buying/earning points as needed rather than “investing” in pre purchased points. The limited time promos are not as limited or necessary as most people think.
TL;DR Invest *with* money into things even as simple as broad index funds and the value grows over time. Invest in points and the value will continuously and arbitrarily decrease over time.
First ONLY EVER PURCHASE POINTS IF THERE IS A BONUS GOING ON.
For example (25-40% bonus on points purchased), these run pretty frequently I’d say every other month.
Next -
I would recommend purchasing if you have a specific stay in mind, not just to bank the points for years to come.
I would also factor in parking fees and resort fees waived if you are or are not a Globalist which can be substantial.
For example -
A Globalist staying at a $200 a night “resort or destination type property” that costs 12,000 points per night with a $40 per night parking charge, after taxes and fees total per night would be roughly $275.
Factor in applicable promos appropriately which could be a 3x promo or a Points Rebate promo.
If it’s theres points rebate promo running then the best choice would be to buy the points and make an award stay, even if a 3x promo is running concurrently.
Oct 19, 2021, 6:42 pm
#23
Join Date: Apr 2021
Location: Manhattan, Palm Beach Island, San Francisco, Boston, & Hong Kong
Programs: Lifetime United Global Services, Delta Plat, Hyatt Globalist, Marriott Ambassador, & Hilton Diamond
Posts: 3,165
While I mostly agree I see definitely plentiful situations where purchasing points is useful -
First ONLY EVER PURCHASE POINTS IF THERE IS A BONUS GOING ON.
For example (25-40% bonus on points purchased), these run pretty frequently I’d say every other month.
Next -
I would recommend purchasing if you have a specific stay in mind, not just to bank the points for years to come.
I would also factor in parking fees and resort fees waived if you are or are not a Globalist which can be substantial.
For example -
A Globalist staying at a $200 a night “resort or destination type property” that costs 12,000 points per night with a $40 per night parking charge, after taxes and fees total per night would be roughly $275.
Factor in applicable promos appropriately which could be a 3x promo or a Points Rebate promo.
If it’s theres points rebate promo running then the best choice would be to buy the points and make an award stay, even if a 3x promo is running concurrently.
First ONLY EVER PURCHASE POINTS IF THERE IS A BONUS GOING ON.
For example (25-40% bonus on points purchased), these run pretty frequently I’d say every other month.
Next -
I would recommend purchasing if you have a specific stay in mind, not just to bank the points for years to come.
I would also factor in parking fees and resort fees waived if you are or are not a Globalist which can be substantial.
For example -
A Globalist staying at a $200 a night “resort or destination type property” that costs 12,000 points per night with a $40 per night parking charge, after taxes and fees total per night would be roughly $275.
Factor in applicable promos appropriately which could be a 3x promo or a Points Rebate promo.
If it’s theres points rebate promo running then the best choice would be to buy the points and make an award stay, even if a 3x promo is running concurrently.
Oct 20, 2021, 5:38 am
#24
Join Date: Aug 2012
Posts: 6,752
My approach has anyways been that anything at a low enough price may become appealing, while anything at a high enough price can become unappealing. No idea how others the Hyatt currency, but, for my purposes, unless it's under 1cpp, I wouldn't even consider it. If I needed them, I could just bust out those Ink cards and cheese all day long.
If you give something away for free, I ain't paying for it--nothing in life worse than being a patsy.
If you give something away for free, I ain't paying for it--nothing in life worse than being a patsy.
Oct 20, 2021, 7:17 am
#25
Join Date: Jan 2014
Programs: Amtrak Guest Rewards (SE), Virgin America Elevate, Hyatt Gold Passport (Platinum), VIA Preference
Posts: 3,134
My approach has anyways been that anything at a low enough price may become appealing, while anything at a high enough price can become unappealing. No idea how others the Hyatt currency, but, for my purposes, unless it's under 1cpp, I wouldn't even consider it. If I needed them, I could just bust out those Ink cards and cheese all day long.
If you give something away for free, I ain't paying for it--nothing in life worse than being a patsy.
If you give something away for free, I ain't paying for it--nothing in life worse than being a patsy.
That being said...I think quite a few of us are flush with points thanks to recent circumstances.
Oct 20, 2021, 7:52 am
#26
Join Date: Dec 2008
Location: DUB-BOS
Programs: various
Posts: 3,689
For people in the US there are many ways to aquire hyatt points at far less than they sell them, promo or not.
If they were below 1cpp, then there might be a decision on cost vs convenience but not at current rates.
If they were below 1cpp, then there might be a decision on cost vs convenience but not at current rates.
Oct 21, 2021, 6:56 am
#27
Join Date: Feb 2017
Programs: LT Marriott Titanium, Hyatt Globalist, Hilton Diamond, IHG Plat, Hertz Prez Circle, United Platinum
Posts: 767
I 'buy' points using a different strategy.
In my case, I have to monitor my number of annual nights to barely hit 60/yr. So I have purposely underpaid my taxes and make quarterly estimated tax payments using my Hyatt credit card.
Hitting 60 nights this year hasn't been difficult, but most years I'll charge ~$80k/yr toward taxes which gives me 32 nights' credit just for tax payments.
Charging points in this manner costs me 1.96 cents/pt (using PayUSAtax). Not the best, but I'll pay the small premium in order to avoid any mattress runs. With the current 30% bonus on buying points, I calculate that to be 1.85 cents/pt..
In my case, I have to monitor my number of annual nights to barely hit 60/yr. So I have purposely underpaid my taxes and make quarterly estimated tax payments using my Hyatt credit card.
Hitting 60 nights this year hasn't been difficult, but most years I'll charge ~$80k/yr toward taxes which gives me 32 nights' credit just for tax payments.
Charging points in this manner costs me 1.96 cents/pt (using PayUSAtax). Not the best, but I'll pay the small premium in order to avoid any mattress runs. With the current 30% bonus on buying points, I calculate that to be 1.85 cents/pt..
Oct 21, 2021, 7:53 am
#28
Join Date: Aug 2012
Posts: 6,752
Oct 21, 2021, 8:18 am
#29
Join Date: Jan 2017
Programs: Marriott Lifetime Titanium, Hyatt Globalist
Posts: 2,193
Right now I have around 500,000 Hyatt points and have used almost 500,000 this year so I'm not buying... But yes I normally do buy for the following 2 reasons:
1) guest of honor for my wife and kid when they travel
2) if the 3 of us stay in a single room (for the free 3 breakfast and in places where I know I'll get a suite), it's cheaper to book w points than 3 people.
So it makes complete sense for me to buy points. I often will buy them on a new card to get the bonus points...
1) guest of honor for my wife and kid when they travel
2) if the 3 of us stay in a single room (for the free 3 breakfast and in places where I know I'll get a suite), it's cheaper to book w points than 3 people.
So it makes complete sense for me to buy points. I often will buy them on a new card to get the bonus points...