Redemption value of HHonors Points

[Pleb Status]

What is the prevailing wisdom on the redemption value of HHonors points? I have been working on ~0.75c/pt as not bad value (Conrad Hong Kong and various NYC hotels get this return).

Some hotels can provide a return over 1.0c/pt but are these just generally overpriced and better value found elsewhere?

 

[serfty]

In my experience anything over ½¢ is reasonable.

Note that you need to examine any point earn when comparing paid v award stay value.

 

[kpc]

If I can get 1c value I'm happy. ..I just used 160K pts for 2 nights at Conrad Koh Samui + my free night from Macquarie HHonors Visa card. ..it's about $800 pn

 

[Pleb Status]

In my experience anything over ½¢ is reasonable.

Note that you need to examine any point earn when comparing paid v award stay value.

Thanks. I wanted to ensure there were no tricks I was missing (transfers via AA etc) before spending a very large chunk of HHonors points.

I booked at a Conrad this morning which gives an effective return of 1.49c/pt but as this is during a special event, their cheapest room rate is extortionate (along with everyone else in town).

 

[Cynicor]

I aim for 0.005 USD approx as acceptable value.

 

[Deleted member 29185]

Some hotels can provide a return over 1.0c/pt

In my experience anything over ½¢ is reasonable.

If I can get 1c value I'm happy.

Are you referring to AUD or USD?

My benchmark rate is AU$0.005.

If a redemption values a point at less than that, I'll pay cash. If a redemption values a point at exactly that, I'll consider it, but I may or may not accept it. If a redemption values a point at more than that (especially considerably more than that), than I'll be likely to grab it. It's why the HH point sales are sometimes worth it, but mostly not as if I have to pay more than AU$0.005 per point, it is likely too dear for many properties (although there are exceptions).

 

[dajop]

Are you referring to AUD or USD?

My benchmark rate is AU$0.005.

If a redemption values a point at less than that, I'll pay cash. If a redemption values a point at exactly that, I'll consider it, but I may or may not accept it. If a redemption values a point at more than that (especially considerably more than that), than I'll be likely to grab it. It's why the HH point sales are sometimes worth it, but mostly not as if I have to pay more than AU$0.005 per point, it is likely too dear for many properties (although there are exceptions).

I agree with this.

I have a "basket" of likely hotel stays I look at to calculate my value, and it comes out at ~0.4c (USD) per point or $0.004 USD per point. In doing so I look at the hotels I would likely stay at and the cost of points vs pay. Anything above (or even slightly below) the threshold will definitely use points, and also use this for comparing points to points + pay. Interestingly, when I first did the calculation it was 0.5c per point, so definitely getting a devaluation over time.

In my basket, I exclude hotels I would not normally pay for (for example I've never paid $1000/night for a hotel room, and can't see myself doing so, unless a very very special event, so don't factor those in) and even say in New York, which is one of the cities in my basket, I won't include a Hilton, for example selling at $500/night when I would happily stay at a Hilton Garden Inn a few blocks away for $200/night.

 

[Pleb Status]

Are you referring to AUD or USD?

My benchmark rate is AU$0.005.

If a redemption values a point at less than that, I'll pay cash. If a redemption values a point at exactly that, I'll consider it, but I may or may not accept it. If a redemption values a point at more than that (especially considerably more than that), than I'll be likely to grab it. It's why the HH point sales are sometimes worth it, but mostly not as if I have to pay more than AU$0.005 per point, it is likely too dear for many properties (although there are exceptions).

I was referring to AUD. I aim for AUD0.0075 as not too bad.

The actual return is harder to calculate as the room rate may be well above 'market rate'. In my booking this morning, I have a return of AUD0.0149 but there is no way I would pay what is they are asking in cash (~AUD896/night). However, it would be reasonable for the dates at half the rate so I should be getting at least my desired return.

 

[Deleted member 29185]

I agree with this.

I have a "basket" of likely hotel stays I look at to calculate my value,

I don't have a basket as such, as I tend to only do the figures when I have a holiday coming up and specific cities/properties in mind. I might also say that I rarely redeem points in Oz (I can only remember doing so once at HI-CNS, last Christmas day as the prices in CNS were ludicrous). Also, the vast majority of my stays in AU are for business and hence either paid for by others, or a tax deduction, so why would I use points? Overseas holidays however, are a different kettle of fish!

 

[serfty]

I factor as USD.

Note that a USD800 per night stay can earn a Diamond 17000 HHonors points, or even 27000 under the current double points promotion, so to book for 160K point can actually means a points cost of 187K when lost earning is taken into account.

 

[kpc]

I factor as USD.

Note that a USD800 per night stay can earn a Diamond 17000 HHonors points, or even 27000 under the current double points promotion, so to book for 160K point can actually means a points cost of 187K when lost earning is taken into account.

Good points but the $800 was the advanced purchase rate...the flexible rate is > $1000....I would never book a non flexible rate for that amount ...+ most of my HHonors pts are picked up on expensed stays...and I tend to blow them on expensive leisure stays eg Maldives, Moorea, KS, Conrad Tokyo...anyway it is a distinct individual decision / choice