The Logic of Purchasing Hotel Loyalty Points for High-End Accommodations
Article: Strategies for Purchasing Hotel Points for Luxury Stays
For those seeking a luxurious getaway without breaking the bank, purchasing hotel points during promotions can be a smart move. Here are some key strategies to maximise your value when buying hotel points for high-end stays.
Buy Points Strategically
The best time to purchase hotel points is when you're just short of what you need for a redemption. For instance, Marriott occasionally offers up to a 100% bonus on purchased points, making it more cost-effective for luxury stays at JW Marriott Phu Quoc or The Ritz-Carlton Mexico City, where cash rates exceed the purchase cost of points.
Look for Sales and Bonuses
Hyatt points can be bought up to 55,000 points annually, with occasional 30% bonuses reducing the cost per point significantly. This can be useful to top off your balance for costly redemptions.
Earn Points Primarily Through Other Means
Buying points to stockpile in advance is generally not recommended due to devaluation risks. Instead, earn points primarily through stays, credit card spending, and promotions, then buy points only to top off your balance to complete an award booking.
Combine Earning Strategies
To maximise points before purchase, combine multiple earning strategies. This includes using co-branded hotel credit cards with category bonuses, merchant offers, and elite status bonuses to accumulate a large number of points and then buying the small remainder needed to reach an award threshold.
Maximise Redemptions
Maximise your redemptions by booking hotels that offer good value per point and taking advantage of perks like the fifth-night-free rule on award stays at Marriott, which can boost your effective redemption value against cash rates.
Case Study: The Alila Ventana Big Sur
Redeeming World of Hyatt points for a 2-night stay at the Alila Ventana Big Sur would cost 5.1 cents apiece. With nightly award rates starting at 45,000 World of Hyatt points, this represents a significant saving compared to cash rates that hover around $2,300 per night for a base room.
The Benefits of Buying Points
Buying hotel points for an aspirational hotel stay may be a worthwhile option if one has applied for many travel credit cards in a brief period or is above Chase's 5/24 rule and wants to alleviate the pressure on their credit score.
Promotional Offers
During promotional offers, purchasing hotel points can be cost-effective for expensive luxury hotel stays. For example, Hilton Honors points can be purchased at a rate of 0.5 cents per point during a limited-time promotion, making it an attractive option for booking Baker's Cay Resort, where nightly award rates start at 90,000 Hilton Honors points.
Avoiding Unfavourable Purchases
The author avoids buying hotel points when there's no promotional discount or bonus offer available. During the holiday season or in the winter months, cash rates at the Grand Hyatt Kauai Resort & Spa can easily reach over $1,000 per night, making it a good time to explore the possibility of transferring flexible points to the hotel's loyalty program before booking an expensive hotel.
Conclusion
In summary, the best approach to purchasing hotel points for luxury stays is to accumulate most points through spending and promotions, then strategically purchase points—ideally during offers—to top off your balance for a targeted luxury hotel redemption where you achieve a clear cash value advantage.
- To maximize luxury stays at high-end hotels like JW Marriott Phu Quoc or The Ritz-Carlton Mexico City, it's wise to buy hotel points advantageously during promotional periods that offer bonus points.
- Purchasing Hyatt points during sales or when offered a 30% bonus can be beneficial for costly redemptions, especially when it helps top off your balance.
- When planning an aspirational hotel stay, it might be a good idea to buy hotel points if you've recently applied for multiple travel credit cards or have already surpassed Chase's 5/24 rule to avoid negatively affecting your credit score.
- During promotional offers, purchasing Hilton Honors points can be an economical choice for expensive luxury hotel stays, like Baker's Cay Resort, where award rates start at 90,000 points.
- A pitfall to avoid is buying hotel points without a promotional discount or bonus offer, especially during the holiday season or winter months, when cash rates at hotels like Grand Hyatt Kauai Resort & Spa can be steep, making it worth exploring the possibility of transferring flexible points instead.
