Points and Miles
I recently described areas where I give up savings, essentially paying more for what I consider superior experiences. That conversation primarily involved cash money, so I figured it would be interesting to have a similar one around points and miles. Some chase what they call “sweet spots” for big miles and points savings, which is perfectly understandable. Many enjoy the hunt just as much as the redemption. Meanwhile, I routinely prefer achieving my family’s goals in the simplest way possible, which often means paying more for points and miles redemptions. Today, I’m discussing a few reasons why.
Foregoing Fifth Night Free
We try to be flexible with our plans to keep points and miles redemption prices low whenever possible. But schedules, primarily school-related, can limit our travel timeframes here and there. Also, certain locations may be worth a four-night visit, but maybe not five. Flights might not line up for longer stays, either. For all of those reasons, my wife and I may redeem our hotel points while giving up the fifth night free from Hilton and Marriott (IHG offers many a fourth night free option).
While that may end up with a higher points per night cost, our level of satisfaction doesn’t necessarily decrease. Indeed, if tailoring the trip based on competing priorities leads to a better fit, that free extra night was never worth as much to us.
An Aspirational Experience
We’ve focused on enjoying the journey along with the destination for years. I’ll pay more miles, maybe at a lower return, to fly premium economy, business, or first class if I want to experience a particular flight product. And when we get to our destination, we may pay an inflated amount of points to stay at a particular hotel we want to experience.
This may seem like malpractice to many points and miles enthusiasts. But at a certain threshold, saving those points and miles for a rainy day doesn’t make sense. Doing so would be incompatible with our goals. We particularly double down here because we don’t and won’t ever travel enough to fully consume our points and miles balances. This relates to those healthy levels, but just as much to our modest, realistic travel outlook. Defining your points and miles goals (yes, that word again) and forecasting your related demand plays a key role.
Know thyself.
Novelty
Let’s go the other way from goals now. Sometimes, I shamelessly redeem points and miles for the entertainment value. For instance, I’ve redeemed my Banana Republic Rewards points on a variety of stuff I would never buy with cash money. I just used an AA Loyalty Point Reward on a luggage tag I’ll probably never use. It’s fun to mix things up. Speaking of, I don’t recall ever redeeming miles for a cocktail in a Delta lounge, but I don’t necessarily rule that out in the future.
As a longtime cashout fan, I highly value redemptions unrelated to a flight or hotel stay. In a similar, perhaps-less-logical vein, I’m intrigued by silly, creative redemptions. Remember, our points and miles hobby should be fun. Do whatever you want to keep it that way.
Immediate Availability
I place a high value on the ease of availability and will therefore pay a premium for it. If I can obtain the flight or hotel award with minimal effort, I’ll often book what some may perceive as an inflated rate. I don’t flinch in those situations, because I have the peace of mind knowing I got what I wanted in minimal time. Keep in mind that time can have a value superior to those extra points and miles you’d pay. The latter can be replenished while the former cannot.
Of course, this doesn’t mean to give up on easy ways to save. For instance, we save on those eyepopping Delta redemptions by using the TakeOff 15 benefit. We’ll sometimes travel during the low season to dampen any super-expensive hotel award rate. We’ll also look at rebooking when lower rates appear. But we know in many circumstances we’re paying a higher rate and are more willing to do so when our solution is simple.
Points and Miles Redemptions – Conclusion
We know there’s a certain point when finding that cheap award rate goes from fun to drudgery. That comes much earlier for us than with others, and we’re fine with it. While I enjoy both, I know I like earning points and miles more than finding the cheapest deals with them. I must also keep in mind that this dynamic can change over time. As scaled earning periodically takes a hit, I know I can respond with more economical redemptions, if necessary. Mindfully earn and redeem. Do big things!
In what situations do you use more on your points and miles redemptions than what others may perceive as necessary?
Time definitely does have a deteriorating effect on the points we hoard. To prove it, I was going to take part of my family plus wife and I to Munich and Vienna back in 2020 (Total 6 people). It was all Business class roundtrip on different airlines, and the hotels included Hiltons, Marriotts and concluded in Vienna with 3 rooms on the executive lounge floor. The trip totaled $105,000.00 had I paid for it but came in a little over $3,500.00 to pay for fees with the airline tickets. It would have been great, but then the whole trip had to be cancelled because most of the things we were going to see were cancelled due to Covid.
Fast forward to 2025. We’re all heading over in June with almost the same itinarary, however, point deflation has reared its ugly head. Instead of Business, we’re going economy. Instead of the Munich City Hilton, were using the City Holiday Inn. In Salzburg, we’re staying at the same hotel as originally planned, The Goldener Hirsch. In Vienna, it’s now the Vienna Marriott instead of the Ritz, but we’ll all be staying on the club floor. I’m still spending an enormous amount of points and miles for the trip but I’m grateful that I’m still able to use them no matter what class I’m in.
There are no perfect redemptions. You spend the points and miles that make sense to you. Everyone’s needs are different. The whole idea behind signing up for all those credit cards was to use them for trips you might otherwise not be able to take. And like Jack stated, forget about the cents per point redemption rate.
It is astounding to what extent some hobbyists are obsessed about cents per point . . . at the expense of experience or convenience. Often they are self-enslaved to a particular hotel program. And, for an extra 0.15398 cent per point, they will rationalize an inferior property that is only a couple blocks away from a clearly superior property in the same hotel program. Life’s too short.
Preach, Jack. But it appears some just adore what I (and you) abhor.
My issue is I have a lot of points across numerous hotel and airline programs plus a large amount of Amex, Chase and Citi points. I have my own value of points. I I want to go somewhere or stay in a specific city and I’m not getting the value I expect from the points I just pay cash. I’m fortunate enough to be financially set (for me and my next generation or two) so cost isn’t an issue and never stops me from going where I want or staying at properties I prefer. On the other hand I will NEVER waste points on a sub optimal rate. Sorry but maybe I’m one of the few that can easily afford whatever I want and simply use points or miles to offset the cost. BTW most of my points/miles are international business or first class, domestic first class and 4/5 star hotels. I feel you need to get true value. If not just pay for it so you don’t waste points/miles.