Hotel points can be acquired through various methods, such as staying at hotels, transferring credit card points to loyalty programs, spending on a hotel credit card, or purchasing them outright. However, it’s generally advised for travelers to avoid buying points directly from hotels as they are often sold for more than their actual redemption value. For instance, while Hilton points may be sold for 1 cent each, they may only be worth around 0.6 cent according to BW’s valuation.
Nevertheless, there are circumstances where buying points can be beneficial, especially if it helps in booking a hotel stay that would otherwise be unattainable, particularly for individuals who are unable to open a hotel or travel credit card.
Here are some scenarios where purchasing points can save you money on your hotel stays.
When to consider buying points
During points sales
Certain promotions, like a 100% bonus on purchased points by Hilton, can make buying points a worthwhile investment. In such cases, buying points at a discounted rate can result in significant savings when redeeming them.
If you can get a fourth or fifth night free
Some hotel deals offer a free fourth or fifth night when booking entirely with points. If the cost of buying points is lower than paying for the nights in cash, it can lead to cost savings for longer stays. However, certain programs may require elite status or specific credit cards to avail of this benefit.
When buying points is less than paying in cash
Before purchasing points, it’s essential to analyze the costs involved. For example, a one-night stay at a specific hotel may be cheaper when buying points compared to paying in cash, resulting in potential savings.
For instance, a stay at Hyatt House San Diego/Sorrento Mesa in mid-April may cost $300 in cash or 12,000 World of Hyatt points, equivalent to $234 when purchased during a sale with a 25% discount.
In this example, buying points would result in a $55 saving compared to paying in cash for the same room type. However, it’s important to note that this may not always be the case for every scenario.
Similarly, for a stay in mid-September at the same hotel, buying points may cost more than paying in cash, leading to a higher expense for the room.
In such cases, buying points may result in a higher overall cost than paying in cash for the room, emphasizing the need for cost-benefit analysis.
Using all three strategies
While saving money by buying points is beneficial, it’s just the start of maximizing your hotel stays through point redemption. One effective approach is purchasing points during sales and using them for luxury vacations where cash rates are exorbitant.
For example, a stay at Conrad Bora Bora Nui costs 120,000 Hilton Honors points per night for a lagoon view suite, equating to approximately $1,300 in cash. However, during Hilton’s promotional sales with up to a 100% bonus on purchased points, you can acquire 480,000 Hilton points for $2,400.
By combining these points with Hilton’s fifth-night free benefit on award stays, you can enjoy five nights at the Conrad Bora Bora Nui for $2,400, whereas the cash price would amount to approximately $6,500. This illustrates a 63% saving by opting to buy and redeem points for your stay.
Maximizing rewards through strategic point purchases can significantly enhance your travel experiences and provide substantial cost savings on luxury accommodations.