When choosing between two credit cards with similar benefits and annual fees, the decision can be swayed by the welcome bonus points offered. However, it’s essential to consider the actual value of the points to determine which bonus is better. BW provides valuations of various rewards programs to help users make informed decisions.
Understanding the value of points and miles is crucial for making the most of them when booking travel. Valuations can help in deciding whether to book with points or cash, evaluating different award booking options, maximizing spending, and assessing other earning opportunities.
How to use valuations for award travel
Valuations can assist in deciding whether to book flights with points or cash by calculating the redemption value per point. It’s important to consider the actual worth of the points in relation to the cash price to make an informed decision.
Decide whether to book with points or cash
Using tools like the flight calculator, individuals can determine the best option for booking flights based on the value of points and miles. Calculating the redemption value per point can help in making cost-effective decisions.
For example, when booking a hotel stay with Hilton Honors points, comparing the redemption value to BW’s valuation can indicate whether booking with points provides better value than paying cash.
Choose between award booking options
Valuations help in determining the type of award to book and which loyalty program offers the best value for booking travel. By comparing redemption values and award rates, individuals can make informed decisions on how to use their points and miles effectively.
For instance, booking a flight using Alaska Mileage Plan miles for an American Airlines flight can offer better value than using AAdvantage miles directly based on the redemption value per mile.
Maximize spending
Points and miles valuations can also help in maximizing spending by identifying the best ways to earn and redeem rewards. By considering the value of points earned and the conversion rates, individuals can make strategic decisions to optimize their rewards.
Comparing the return on spending with different credit cards, such as the Chase Sapphire Preferred® Card and the Hilton Honors American Express Surpass® Card, can show how the value of points influences the overall rewards earned.
Evaluate other offers
Using valuations, individuals can assess the potential return from various earning opportunities, including credit card bonuses, loyalty program promotions, and other incentives. Understanding the value of rewards can help in making informed decisions when choosing how to earn and redeem points.
For example, a hotel loyalty program promotion offering bonus points per night can be evaluated based on the valuation of the points to determine the actual value gained from participating in the promotion.
How not to use points and miles valuations
Avoid relying solely on valuations as the ultimate factor in decision-making, as they may not capture the full value of rewards in every scenario. Consider personal preferences and usage patterns when assessing the worth of points and miles.
Don’t treat valuations like gospel
While valuations provide a useful reference point, they should not be viewed as absolute truths. Individual preferences and travel goals can impact the actual value derived from points and miles, so it’s important to consider personal factors in addition to valuations.
Consider how much you’ll use a reward currency
The value of rewards is only realized when they are actually used, so it’s important to consider how likely you are to utilize a specific reward currency. Factors like airline availability, hotel locations, and personal travel preferences should be taken into account when deciding which points to collect.
Don’t confuse valuations for return on spending
When evaluating the return on spending, it’s essential to consider both the value of the points earned and the rate at which they are earned. A higher earning rate may offset a lower valuation per point, resulting in a higher overall return on spending.
Don’t over-maximize
While maximizing the value of points and miles is important, it’s equally crucial to ensure that the awards align with your travel preferences and goals. Don’t get caught up in chasing high redemption values if they don’t match your desired travel experiences.