Use hotel points vs $$$
 

I'm a novice here with perhaps a too simple question.

When I use frequent flyer miles to purchase an airline ticket, I use the guideline: I'd like to get a penny and a half per point. Ex. Use 25,000 miles for a ticket that would cost me $375 or more. Nice, but lately I've been getting only a penny per point.

My question is, when it comes to hotel points, what would be a reasonable guideline? If I use 10,000 points for a room that would cost $125, or a penny and a quarter per point, is that a good, bad or average deal?

Thanks for any insights.

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Depends on the program. If I'm using SPG and know that I can transfer to an airline and get a minimum value of at least 1.25 cents per mile... I usually will make sure I get at least 3 cents per SPG when redeeming. The cash and points feature can also maximize the value per point if it is available at expensive hotels.

Different hotel programs have very different valuations for their points (and give very different numbers of points per dollar spent at their properties). Look at HHonors vs. SPG, for example. Due to these differences, it's not possible to come up with an acceptable dollars/points ratio that would cover all of them.

bbj -- welcome to FT!

As the others have stated, not all points are the same. Some hotels have bottom tier rooms starting around 4K points, others start at 10K. The points are also earned at different rates as well. Some award 5 points per dollar, others only one per dollar.

I am a SPG whore and I try to milk my points for about 3cents per. So when redeeming 10K points for a room, the room should be about $300 per night or higher.

Thanks for all your quick responses. In my case it's Marriott points. Not sure if I should save them for a stay at an expensive Marriott (for more than 10K points per night) or use them this weekend at a Fairfield Inn.

For Marriott? I start to consider using them at about 1.0 cents per point, and would strongly do so above about 1.25 cents per point. You can buy points at 1.25 cents per point, so that seems like a good breakpoint.
Others have different cutoffs. The best Marriott reward is the travel package, but that starts at 200,000 points. If I could foresee that level, I'd save more. But I'm not near that.

One additional difference between hotels and airlines is that hotel night redemptions usually include taxes, unlike airline redemptions. The US$100 room rate means $110 or $115 or even more. That makes the hotel numbers a little better.

Its always best to sell because you don't make miles when flying with miles. I'm not sure about hotel stays... I think its the same way.

For this weekend the room rates will be US$117 and $127 (different rates for different nights) so I'd be getting 1.17 to 1.27 cents per point plus the taxes. I'm going to use your guideline and use the points. Thanks so much for the reply!

I don't understand what you mean by, "It's always best to sell..." I do understand that when you're not paying for a flight/hotel room, you don't earn miles/points.

It's not just you. I don't understand it either.

Loyalty Traveler is probably your best source of info for comparing the value of hotel programs and their points:
http://boardingarea.com/blogs/loyaltytraveler/

Example with airline miles:

This summer I want to go to Europe. Thats 60K AA miles roundtrip in coach.

So..

IF I USE MILES

Beginning balance: 60K
Ending balance: 0K

IF I SELL MILES/PURCHASE TICKET

Beginning balance: 60k
Ending balance: 15K (Around that depending on segments...)

By purchasing I have more miles in the end and spend the same or just a bit more money... here's how it works:

The thing is you need to know someone that you can trust to actually use the ticket/give you the money.

So, if they are looking for a $1,200 ticket, you sell it to them for $1,100 and use your miles to purchase it under their name.

Then purchase your ticket (pay any difference if necessary).

Thanks, now I understand. Interesting strategy but not appropriate for my situation this time.

Seems like foolish advice to me as well. Perhaps you should translate the users name from Spanish into English, and perhaps that will give you a clue. ;)