Use hotel points vs $$$
Jan 5, 2011 | 12:53 pm
#1
Original Poster
Join Date: Jan 2011
Posts: 6
Use hotel points vs $$$
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.
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.
Jan 5, 2011 | 1:16 pm
#3
Join Date: Feb 2009
Posts: 3,774
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.
Jan 5, 2011 | 1:31 pm
#4
Join Date: Apr 2003
Location: MSY
Programs: BA GfL
Posts: 6,056
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.
Jan 5, 2011 | 1:36 pm
#5
Join Date: Jul 2008
Location: CLL
Programs: MS Plat, AOR ninja
Posts: 2,177
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.
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.
Jan 5, 2011 | 7:23 pm
#7
Join Date: Jul 2009
Location: Tucson, Arizona
Programs: Hyatt Globalist; Marriott Gold
Posts: 514
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.
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.
Jan 5, 2011 | 7:41 pm
#9
Original Poster
Join Date: Jan 2011
Posts: 6
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.
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.
Jan 5, 2011 | 7:45 pm
#10
Original Poster
Join Date: Jan 2011
Posts: 6
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.
Jan 5, 2011 | 7:54 pm
#11
Join Date: Mar 2006
Location: Miami, FL, USA
Posts: 4,103
Jan 5, 2011 | 8:01 pm
#12
Join Date: Mar 2010
Location: mountains of western NC
Programs: Life, Love and Laughter
Posts: 9,812
Loyalty Traveler is probably your best source of info for comparing the value of hotel programs and their points:
http://boardingarea.com/blogs/loyaltytraveler/
http://boardingarea.com/blogs/loyaltytraveler/
Jan 5, 2011 | 8:02 pm
#13
Formerly known as cagalindo
Join Date: Sep 2010
Location: MCO TPA
Programs: Citi AA/HH/TYP Amex SPG/HH & Chase SP/PC
Posts: 1,335
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).
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).
Jan 5, 2011 | 8:42 pm
#15
FlyerTalk Evangelist
Join Date: Sep 2003
Location: HH Diamond, Marriott, IHG, Hyatt something
Posts: 34,504
