1120

I see threads about all sorts of topics here, but I have never seen one that specifically addresses how we use points.

For instance, do you have a specific target for value per point redeemed? If so, do you typically use 5 for the price of 4, 7 night (or 5, if you're eligible) travel package redemptions, point savers and so forth?

Now what makes sense for one of us may not make sense for another for any number of reasons. I'm thus not looking for people to prove that what they do is "better" than what someone else does; I just want to hear what you do and hopefully learn something along the way.

I've done (or have booked) three redemptions over the past year:

NYC Edition on a point saver last year - I originally planned to do a travel package, but the point saver looked better to me. It worked out to better than 2 cpp plus an upgraded room.

Ren Phuket next month- done as a 7 night tp with 132K UA miles. This one will be at least 1.5 cpp

Courtyard Ogden in January - for a whopping 7,500 points I'll save $140.

Back to my original question, I don't redeem for less than 1.5 cpp. I've had a couple stays where I thought about redeeming, but the category seemed a little high relative to the cash price.

Anyway, I hope this topic can be helpful for many of us. This site has been incredibly valuable to me over the past several years and I'd like to see that be the case for everyone.

DJ_Iceman

I hardly ever redeem points for hotel nights. I'd much rather earn MORE nights and points credit. In years gone by, I redeemed millions of points for free cruises. I also got lots of items from the merchandise catalog that weren't necessarily the best value, but let me get lots of electronics I probably wouldn't have bought with cash. I have redeemed a few travel package rewards because I wanted frequent flier miles and it just made more sense to get the free week at a Marriott as well, but I struggle to find a time I spend an entire week at a single property, especially on vacation. In any event, I have never calculated cpp on any points I've cashed in.

1120

Great response and this exactly the sort of thing I'm interested in. I have no idea whether I'll ever redeem MR points the way you have, but I wouldn't have thought of it before I saw your message.

3Cforme

Advanced search on 'worth, points' restricted to the last year finds 80 - yes, 80 - threads in this forum. The topic of point value gets discussed all the time.

Cledaybuck

I will save them up if I have a specific redemption I am looking for in the next year or so. Otherwise I earn and burn, unless the redemption value is really bad. The chances of these points going up in value seems pretty remote while the chance of a devaluation seems pretty good, so I see no reason to keep them long term. I don't travel enough to earn any real elite status, so the nights and stays don't mean much to me.

lougord99

I have a very simple redemption philosophy. I pay for business travel and I redeem for personal travel. I don't pay any attention to the redemption rate.

joshua362

Very true, much reading is available. My personal thoughts and takeaways:

1. Your favorite & desired hotels will increase in category almost every year therefore devalue 15-20-25% yearly so burn when you can.
2. Always try and redeem 4 for 5 nights.
3. If you have the Visa card, burn the 1-5 cert at the first opportunity regardless as the opportunity may not return given the limited desirable 1-5 hotels in cities, the northeast and US
4. If you make cpp calculations, don't forget to add 15-20% for the ridiculous taxes. Conversely, cap your valuation numerator at what you would personally pay in cash for the same room, just because they charge $1000 the night before the Superbowl for a $150 room, wildly inflating the cpp, doesn't make it a great calculation in my eyes.

CPRich

I agree with the first part but not the last. I always look at redemption rates across programs and balance hotel quality with redemption rates. I've never failed to find a good property at a rate that was acceptable (at least.5 Hilton, 1 MR, 2 SPG). I try to work out using 5th night free as much as possible, but I don't let redemptions drive my vacation planning - where we go, what we do, etc., comes first, then hotel planning follows from that.

I'd never redeem points for merchandise, car rentals, or most of the other "enhanced options" programs always try to convince you to try.

Jon Maiman

Yes and no on the cpp calculations for a room for the Superbowl (or other mega-event with inflated pricing). On one hand I agree saying you got 6 to 7 cpp on the redemption is unrealistic. On the other hand if it enabled you to get a room where either you couldn't afford or want to pay the cash rate, it is still an excellent redemption. Some folks would argue it is one of the best redemption's.

For my other redemption patterns:

1) Annual Visa night, we almost always have transit overnights driving to or from our summer vacation. Frequently these hotels off an interstate are low category but high nightly rate since they know they have the vacation travelers locked in. I typically use them on $160+ Fairfield rooms. Note, I also do IHG and they have the same inflated rate issue in these areas (as does Hilton though I don't do that program). So typically a 2 for 1 return for the $85 annual credit card fee.

2) There is a property near where my father and sister live on LI that for whatever reason is only a Cat. 3 but routinely has nightly rates of $200+. I average 6 to 10 nights a year spread over 2 to 3 trips at this property and always pay with points. Still an excellent return on cpp versus cash.

3) In general I try to get >= 1 cpp but at times will go lower if I am strapped for cash and/or exceptionally flush with points.

4) Haven't done it in a few years, but travel packages were always the best cpp. I do find 7 nights in one place a bit long, but hey how much can you complain about a week on the beach in Hawaii.

In general, earn and burn on a regular basis regardless of the cpp value. Maximize cpp when you can within that overall strategy. Hoarding just leads to devaluation of your accumulated points. To each their own... Do what makes the most sense for you (and your family).


--Jon

SkiAdcock

That's my philosophy as well. I also think earn low, redeem high. I have a tendency to save points for very expensive hotels. If a hotel is cheap I'd probably pay for it vs. using points, but there have been times when even w/ cheap hotels I used points because $$ were tight (self-employed) & free was still better than cheap. It's a to each their own. I've never once done a CPM calculation re: hotel points or airline miles.

And yes this topic crops up all the time.

Cheers.

joshua362

<redacted>

pinniped

I redeem close to 100% of my Marriott points for Travel Packages. Usually with some sort of airline mileage bonus.

I don't fret *too* much about the value-per-point of the 7-night hotel certificate. I always redeem at a city (non-resort) Marriott/Renaissance or (if I'm really lucky) an MVCI unit, usually somewhat high category, usually in a location I actually want to spend a week in but would find good lodging expensive.

My 2018 Travel Packages will be Rome (Boscolo Exedra) and Hawaii (the newer MVCI north of Kona). Those both happen to be $450-500/nt. properties, but I probably wouldn't have booked either with my own cash so the value I assign to them is somewhat subjective.

2019 will probably be Hong Kong and one more TBD. Crossing my fingers that Travel Packages stay strong through the program merger and are bookable into 2020 and beyond.

When I need one or two night award, I look to my smallish stash of Hyatt, IHG, or Carlson points. When I need a resort hotel, I look to my Hilton stash.

CPRich

You can ignore these numbers when you're trying to define the "value" of a point. Some people point out that it's possible, with planning, to find a $25K airfare JFK-NRT in F, thus miles are worth $25K/redemption cost. No, of course their not.

But if you have tickets to the Super Bowl, and need somewhere to stay, and rooms are $1000, and you can redeem at a property for 30K/night, you certainly won't "ignore" the opportunity because it's "inflated". I didn't pay going rate for SB XL.

joshua362

Definitely. In retrospect, Super Bowl was a bad example, worthy of a "splurge" certainly. Maybe a $500 SF JW only because its new years eve in a big city is better.

VisaW

Agree with 1.5 cpp minimum.

Someone above mentioned devaluation, which, while always a consideration, does not happen to Cat 9 properties, because, well, there's no Cat 10. The best consistent value I find are in those Cat 9 properties that in peak season run $6-7-800 a night sometimes. Five nights at a property like that for 180k points is valuable. The reverse is true as another person said above -- some crazy Cat 1 deals out there if you're in the right place at the right time.

One other thing not mentioned specifically -- if you fly Southwest and transfer 110k+ points to their program, you'll instantly get their companion pass, allowing for buy-one-get-one travel for up to two years (if you time it properly). That's probably more valuable than any hotel redemption if you live near a Southwest hub. I myself am a Delta loyalist, so I don't take advantage of this.