When it comes to redeeming your hard-earned points and miles for a dream vacation, getting the best value possible is key. At The Points Guy (TPG), we have created points and miles valuations to help you understand the average value your rewards are worth. When it comes to booking hotel rooms, there are several strategies you can use to get the most out of your points. But one philosophy stands out above the rest — booking either low-end or luxury hotels to maximize the value of your points.
TPG Valuations for Popular Hotel Chains
Before diving into the best strategies for using your hotel points, it’s important to understand the current valuations for popular hotel chains. As of now, the TPG valuations for the most popular hotel chains are as follows:
– Marriott: 0.84 cents per point, on average
– Hilton: 0.6 cents per point, on average
– Hyatt: 1.7 cents per point, on average
– IHG: 0.5 cents per point, on average
While Hyatt tends to offer the highest value per point, all hotel chains have moved towards dynamic award pricing, meaning award prices can vary based on demand and cash prices. However, as a general rule of thumb, you can still maximize the value of your points by booking either the cheapest or most expensive hotels available.
Booking Low-End or Luxury Hotels
One of the best ways to maximize the value of your hotel points is to book either the cheapest or most luxurious hotels you can find. By doing so, you can often get significantly more value out of your points compared to booking middle-of-the-road hotels.
For example, let’s take a look at Marriott hotels in the Dallas area. The Courtyard Dallas-Fort Worth/Bedford offers rooms for 12,000 points per night, which equates to a value of 1.09 cents per Marriott point. While this isn’t a spectacular redemption, it’s still better than booking a more average hotel like the Renaissance Dallas Richardson Hotel, which offers a below-average value of 0.54 cents per point.
On the other end of the spectrum, the JW Marriott Dallas Arts District costs 43,000 points for a night that otherwise costs $564, providing a value of 1.31 cents per point. Similarly, The Ritz-Carlton, Dallas costs 87,000 points for a $1,042 night, yielding a value of 1.2 cents per point. As you can see, booking super-cheap or luxury hotels tends to offer the best value for your points.
How to Book Hotel Award Stays
If you know the destination you’re after, head to the hotel website where you plan to book. For example, let’s use Hyatt for this example. First, enter the location and desired travel dates and click the “Use Points” box below the dates. Then, use the filter menu to sort available hotels by award price and make your selection.
For instance, the Park Hyatt Zurich costs 40,000 points per night, or $864, which equates to 2.16 cents per point — a considerable value above TPG’s estimated redemption value of 1.7 cents per point. On the other hand, the Lindner Hotel Oberstaufen Parkhotel costs 12,000 points per night, or $276, providing a value of 2.3 cents per point, which is well above TPG’s estimated value.
By sticking to either the cheapest award prices at budget hotels or the most luxurious resorts, you can maximize the value of your hotel points. Avoiding middle-of-the-road hotels where the value tends to be lower is key to getting the most out of your rewards.
In conclusion, when it comes to redeeming your hotel points for a dream vacation, booking either low-end or luxury hotels is the best way to maximize the value of your points. By following this philosophy and focusing on the cheapest or most expensive hotels, you can ensure that you are getting the best value for your hard-earned rewards. So, next time you’re planning a trip, remember to book strategically to make the most of your hotel points and miles.