How much are Starpoints worth for you?
Feb 25, 2015, 10:00 pm
#16
Join Date: Jul 2012
Location: NY
Programs: SPG Plat(100), Hyatt Diamond, Marriott Plat, Hilton Gold, IHG Gold, Avis First, United Gold
Posts: 93
I use the 3cent rule as well but sometimes go as low as 2 in case my balance is above 250kpoints.
Best redemption is upcoming stay for Xmas at St Regis Puerto Rico: 30k points but rooms are 2300$ per night
Best redemption is upcoming stay for Xmas at St Regis Puerto Rico: 30k points but rooms are 2300$ per night
Feb 26, 2015, 2:27 am
#17
Join Date: Aug 2009
Programs: UA, AA, BA, National EE, Hertz President Circle, SPG Gold, Hilton Gold, IHG Plat, Marriot Silver
Posts: 301
Doing the math and determining your pain threshold is the best approach. If you are happy with the results, that's all that matters. The only finite rule I have is to burn them as quickly as you can. No program has increased point value over time. So unless you have a big vacation coming up that you want to use points, burn them now.
Feb 26, 2015, 6:46 am
#18
formerly declinespecificinformatiom
Join Date: Jul 2011
Location: USA
Posts: 1,140
If people don't buy the SPG points at .028 when they are on sale any valuation method over that threshold is absurd in my opinion.
Feb 26, 2015, 7:43 am
#19
FlyerTalk Evangelist
Join Date: May 2002
Location: Pittsburgh
Programs: MR/SPG LT Titanium, AA LT PLT, UA SLV, Avis PreferredPlus
Posts: 31,008
When you have a million points, the value of purchasing an incremental point has to be discounted to when you expect to use/redeem that incremental point. A point I buy today would likely not be used for at least 10-15+ years, decreasing the NPV of that point.
This is a different financial analysis than a current valuation of using a point vs. paying cash for a room in the near-term.
Much like the US Army continuing to buy Abrams tanks when they already have thousands in storage, a "good price" doesn't define a good purchase.
This is a different financial analysis than a current valuation of using a point vs. paying cash for a room in the near-term.
Much like the US Army continuing to buy Abrams tanks when they already have thousands in storage, a "good price" doesn't define a good purchase.
Last edited by CPRich; Feb 26, 2015 at 7:54 am
Feb 27, 2015, 1:32 am
#20
Join Date: Nov 2004
Location: YYZ, HKG, MFM
Programs: AC35K, AS MVP, WS Gold, ITA EP, Marriott Plat, Hyatt-Explorist, IHG Diamond
Posts: 2,019
I value my Starpoints at 0.02/point, and I will only redeem it if the value is minimum $0.027/point.