Chase Ultimate Rewards is offering a 60% transfer bonus to IHG — is it a good deal?

If you have a Chase cobranded credit card, such as the Chase Sapphire Preferred Card, Chase Sapphire Reserve, Ink Business Preferred Credit Card, or Chase Freedom Flex, you have the opportunity to earn Chase Ultimate Rewards points. These points can be redeemed through the Chase travel portal or transferred to airline and hotel partner programs. Transferring your points can be a great way to maximize their value and get more out of your rewards.

However, not all transfer bonuses are created equal. While some can provide excellent value and help you stretch your points even further, others can be quite disappointing. It’s important to evaluate each transfer bonus carefully before deciding to take advantage of it.

Let’s take a look at a specific example to illustrate this point. Currently, Chase is offering a 60% bonus when transferring Ultimate Rewards points to IHG One Rewards. On the surface, this might seem like a great deal. However, when you consider the value of the points involved, it becomes clear that it’s not the best use of your points.

According to valuations by The Points Guy (TPG), Chase Ultimate Rewards points are worth 2.05 cents each, while IHG One Rewards points are worth only 0.5 cents each. This means that when you transfer 1,000 Ultimate Rewards points, you would receive 1,600 IHG points. Based on TPG’s valuations, this is like trading $20.50 worth of Ultimate Rewards points for only $8 worth of IHG points.

In practical terms, let’s consider a specific hotel reservation. The Holiday Inn Express Columbus – Ohio Expo Center can be booked for 24,000 IHG points, or by transferring 15,000 Chase points to IHG during this transfer bonus. TPG estimates that 16,000 Chase points are worth $328. However, the cash rate for the same room is only $164. Even with the 60% bonus, the value you’ll get for your Chase points is below average.

In this scenario, it would be more beneficial to forgo the transfer bonus and simply book the stay with points through the Chase travel portal. Chase points are worth a fixed rate of about 1.25 cents each when redeemed this way. Even cashing out your points at a rate of 1 cent each would save you thousands of points compared to using the current transfer bonus.

It’s important to remember that not all transfer bonuses are a bad deal. Some can provide excellent value and help you get more out of your points. To determine if a transfer bonus is a good idea, consult TPG’s monthly valuations and do the math to see if the value you’re getting is above or below the average value of points. Additionally, be sure to keep an eye on our transfer bonus page, which is regularly updated with the latest offers. We’ll let you know when a great deal pops up.

In conclusion, while transfer bonuses can be a great way to stretch your points and miles for more trips and savings, not all bonuses are worth taking advantage of. It’s important to evaluate each offer carefully and consider the value you’ll receive for your points. By doing so, you can make the most of your rewards and get the best value for your hard-earned points.

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