metoo

I booked 2 nights at Le Meridien Chiang Mai for 1600 pts plus $30 per night. I am wondering if the 4000 pts for a free night would be a better redemption.

Anyone?

phlashba

Only if you could buy 2400 points for less than $30. I would keep the cash and points rate.

metoo

thanks. good to know i did the right thing for once.

jdtravel

Totally agree, cash and points.

milesmuncher

Cash and points is pretty much always a better deal than regular award redemptions (with or without the 5th night free). Even with the upcoming changes, it's still a better deal than 5th Night Free.

tfong007

100% cash and points. 4000 = 125 USD

xxmimxx

What do you guys uusally value your spg pts at? I always have a hard time deciding when to use.

chanp

Do the cash and points.

TerryK

+1.^ C&P is always better when available. I value 1 point = 3 cents.

jb3t

One factor missing... How much is the room? Then you can determine the point value for that hotel at that given time.

tbaumann3

In most cases this correct. However one sweet spot where using points is better than C&P is category 1 properties on the weekend where you can get an award night for 2000 points compared to C&P for 1200 points plus $25 (plus tax on the cash portion). In this situation you are paying over 3 cents per point to save those 800 points.

milesmuncher

I've never redeemed for a Cat 1 before - thanks for the tip!

Coolers

Varies based on your own circumstances, such as how much credit card and/or SPG spend you have. I have limited SPG earning potential, so I value them slightly more, but I don't think anyone with disagree with 2cpm minimum.

tbaumann3

I value SPG points at $0.03. I came up with the following chart to make it easy to determine when Cash, Points or C&P was the better deal based on a point value of $0.03 and a room tax rate of 18.14% I have this in Excel, so I can easily change these assumptions. The first column is the number of points required for an award stay, the 2nd and 3rd columns are the points and cash required for a C&P stay. The fourth column is the cost per point to "buy" the points you save on a C&P stay over a pure award stay. The last two columns tell you the pre-tax breakeven room rate where paying cash is better than points or C&P respectively. The chart also assumes you are staying less than 5 days and are not getting the 5th night free. In addition, the chart assumes you earn 3 points per dollar (at least Gold status) on cash stays plus 2 PPD for using the AMEX SPG Card on cash and C&P stays. Therefore, points earned on cash stays are considered in the breakeven points.

For example, using my assumptions, if you are booking a Cat 5 property during high season, you are "buying" the 11,200 point differential between points and C&P for $0.009 per point, a really good deal. In addition if the pre-tax room rate is less than $469.06, then paying cash is a better deal than using points, if you value them at $0.03. At rates above $469.06, points are the better deal. When the room rate is less than $239.03 cash is better than C&P, when the rate is above $239.03 C&P is better.

Also, anytime the last column (C&P breakeven rate) is lower than the next to last column (Points breakeven rate) then C&P is a better deal than points. The only redemption where points is a better deal than C&P is a category 1 weekend redemption.

Comparison of Cash and Points Values (1 - 4 Night stay)
__________Points Only | Cash and Points
__________Points | Points | Cash | Cost per Pt | Points | C&P
Cat 1(Weekday ) 3000 | 1200 | 25 |0.016 | 87.94 | 62.48
Cat 1(Weekend ) 2000 | 1200 | 25 | 0.037 | 58.65 | 62.48
Cat 2(Weekday ) 4000 | 1600 | 30 | 0.015 | 117.31 | 79.68
Cat 2(Weekend ) 3000 | 1600 | 30 | 0.025 | 87.94 | 79.68
Cat 3 (All days_) 7000 | 2800 | 45 | 0.013 | 205.24 | 131.27
Cat 4 (All days) 10000 | 4000 | 60 | 0.012 | 293.18 | 182.87
Cat 5 (Low___) 12000 | 4800 | 90 | 0.015 | 351.83 | 239.03
Cat 5( High __) 16000 | 4800 | 90 | 0.009 | 469.06 | 239.03
Cat 6 (Low __) 20000 | 8000 | 150 | 0.015 | 586.37 | 398.39
Cat 6( High __) 25000 | 8000 | 150 | 0.010 | 732.96 | 398.39
Cat7 ( Low __) 30000 | 15000 | 275 | 0.022 | 879.55 | 740.17
Cat 7 (High __) 35000 | 15000 | 275 | 0.016 | 1,026.13 | 740.17

Canuck2012

I'd say it all has to do with how many points you have. If you have many points, you can afford to spend them freely, if you have fewer points, then C & P makes your points go further, but it will cost you a little $$ each night.