Using MP for hotels
Apr 26, 2015 | 5:34 pm
#1
Original Poster
Join Date: Feb 2009
Location: SFO
Programs: UA GS
Posts: 302
Using MP for hotels
Is there ever a case where using MP miles for a hotel is a good deal? Is it generally just a bad way to spend miles?
Obviously it depends on how you value your miles, but in general...?
Obviously it depends on how you value your miles, but in general...?
Apr 26, 2015 | 5:40 pm
#2
Suspended
Join Date: Apr 2015
Location: SFO
Programs: UA 2MM, AA MM, SPG Platinum
Posts: 22
It's rarely a good case, but a rule of thumb is to value miles at the cash acquisition cost of 1.9-2.1cpm ... Just call it 2cpm for simplicity
If UAMP wants 20,000 miles for the hotel room per night, check if the rate is above or below $400.
If UAMP wants 20,000 miles for the hotel room per night, check if the rate is above or below $400.
Apr 26, 2015 | 5:44 pm
#3
A FlyerTalk Posting Legend
Join Date: Apr 2004
Location: GVA (Greater Vancouver Area)
Programs: D.R.E.A.D. Gold card holder
Posts: 53,203
Since it's more typical to acquire miles for much less, this really overvalues the miles.
Apr 26, 2015 | 6:01 pm
#4
Original Poster
Join Date: Feb 2009
Location: SFO
Programs: UA GS
Posts: 302
Thanks. This year I will probably rack up a lot more RDMs than usual as I fly a lot of TPAC in J. There's no way I'll be able to fly enough to use them and I'm sure further devaluations are coming soon.
Apr 26, 2015 | 7:20 pm
#5
Join Date: Apr 2006
Location: LAS
Posts: 118
I used to do the reverse; I had something like a million IHG points and I redeemed them for air travel several times. I knew it would take a long time to use them for hotel redemption, I figured I might as well spend them before they get devalued.
Apr 26, 2015 | 7:25 pm
#6
FlyerTalk Evangelist
Join Date: Nov 2006
Location: Bangkok or San Francisco
Programs: United 1k, Marriott Lifetime PE, Former DL Gold, Former SQ Solitaire, HH Gold
Posts: 11,889
Yes - it can make sense if you invoke the law of diminishing marginal utility. If you have 100,000 miles, using all of them on a poor redemption value award is probably not a good deal. If you have three million, why not?
I used to do the reverse; I had something like a million IHG points and I redeemed them for air travel several times. I knew it would take a long time to use them for hotel redemption, I figured I might as well spend them before they get devalued.
I used to do the reverse; I had something like a million IHG points and I redeemed them for air travel several times. I knew it would take a long time to use them for hotel redemption, I figured I might as well spend them before they get devalued.