Newbie question about points/room value

Old Nov 3, 18, 12:01 am
  #1  
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Newbie question about points/room value

I apologize in advance for what is probably a dumb question.

I am looking at staying at an IHG property (Venetian/Palazzo to be specific) and a 1 night stay there is 60,000 points. I was thinking of booking for 3 nights and getting the 4th night free by paying for it all in points. So I would be spending 180,000 points for 4 nights total. However the average nightly rate right now for when I'd be staying is $178/night. How do I calculate this to determine what kind of value I'm getting and whether or not using points would be a good deal? I've attempted to research it but my mind is swimming at this point.

I'm still quite new to all this and just want to make sure that I'm getting the best value for the points spent. Thanks for any input.
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Old Nov 3, 18, 4:40 am
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Is there a special deal for 4th night free when using points? This isn't an IHG benefit I'm aware of.

I use a value of 0.5 cents for IHG points. So you'd be paying $300 per night of "points value" per night. Can't recall if using points allows you to avoid the resort fee.


You really need to compare the all-in total cost of paying cash, after tax after fees and compare that to the total number of points required for an award. Just do "dummy bookings" for the two different scenarios. (all the way to the end minus the final confirmation button)
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Old Nov 3, 18, 1:09 pm
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They regularly have sales of points in the range of 10,000 for $50-60 and the routine "buy cash + points" is 10k for $60 -70. So I generally go with the equation 10k = $60 to value if cash or points is a better deal, with that $60 probably being a little over as you have to keep in mind if pay cash rate you earn points which have value so the above mentioned $0.05 number is probably most accurate.

anyways, in your example cash rate as the 180k is "worth" at least $900. And, if travel a lot could easily find hotel rooms with average cash rates $150ish that go for 20k, so could "get out of those 180k points" at least $1,350 by using 3 nights at 20k worth $150...


hope this is of help
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Old Nov 3, 18, 1:51 pm
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It depends on many factors, including personal ones. I'd pay cash in OP's scenario.
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Old Nov 3, 18, 4:30 pm
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Originally Posted by 1flyer View Post
It depends on many factors, including personal ones. I'd pay cash in OP's scenario.
Exactly.

I agree with approximately $0.005 per point valuation. I regularly use 36,000 pts per night to avoid spending $180~$220 and am happy with that use of points.

So, I definitely would not want to use 60,000 points per night for that kind of room rate, ordinarily. However, that decision can change dramatically based on personal factors. What are your alternate uses of points, realistically? Also, are you trying to save cash for some reason? If I need to save cash for whatever reason, I will sometimes use points even at suboptimal redemption values. Itís not ideal, but if it helps keep a trip within budget I will do it. After all I can always get more points.
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Old Nov 4, 18, 9:32 am
  #6  
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Thanks everyone!

My initial instinct was to pay cash for the room and continue to save points as the value at that nightly room rate didn't seem like such a good redemption value. Trying to research exactly what the points should be valued at was giving me a HUGE headache, because nothing was consistent.

Though the feedback here about saving cash even if the exchange rate isn't wonderful makes great sense. I do have a lot of points accrued as a result of the IHG CC and a lot of recent travel, so I may just use the points instead.
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Old Nov 4, 18, 9:33 am
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Yes, with the IHG CC if you pay for 3 nights with points you can get the 4th free.

Edited: this was in response to Craig's question. I forgot to quote reply.
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Old Nov 4, 18, 12:24 pm
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points or cash

Originally Posted by TurksTahiti View Post
Thanks everyone!

My initial instinct was to pay cash for the room and continue to save points as the value at that nightly room rate didn't seem like such a good redemption value. Trying to research exactly what the points should be valued at was giving me a HUGE headache, because nothing was consistent.

Though the feedback here about saving cash even if the exchange rate isn't wonderful makes great sense. I do have a lot of points accrued as a result of the IHG CC and a lot of recent travel, so I may just use the points instead.
Don't forget that with a Free night, you don't pay taxes. The sales tax in Vegas is 8.25 %. Taxes can make a large difference as, for example, Canada where the sales tax is 13% and municipal taxes may be another 2.5%
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Old Nov 4, 18, 12:52 pm
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Originally Posted by bearvest View Post
Don't forget that with a Free night, you don't pay taxes. The sales tax in Vegas is 8.25 %. Taxes can make a large difference as, for example, Canada where the sales tax is 13% and municipal taxes may be another 2.5%
This is a GREAT point that I had forgotten about. Taxes can add up and fast!
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Old Nov 5, 18, 12:58 am
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Originally Posted by TurksTahiti View Post
and continue to save points as the value at that nightly room rate didn't seem like such a good redemption value.
That's a terrible value indeed.

At the same time, keep in mind that points value steadily decreases, and it's already quite hard to get any decent value from award booking at all (aside from flexibility). There are some exclusions, notably China and India (at least Delhi), but they may not stay for long either.
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Old Nov 5, 18, 6:15 am
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Originally Posted by TurksTahiti View Post
Yes, with the IHG CC if you pay for 3 nights with points you can get the 4th free.

Edited: this was in response to Craig's question. I forgot to quote reply.
Ah... No wonder IHG is devaluing like crazy.
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