room rate v HHonors points

Discussion in 'Hilton | HHonors' started by thegrailer, Jun 13, 2011.  |  Print Topic

  1. thegrailer
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    thegrailer Silver Member

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    I have a ton of HHonors points and I am looking to burn some. What do the folks here consider the cut-off point for an award redemption? For example, I am looking at the Hitlon Prague and it is running less than $200 a night for the nights I am looking at - would you burn 35,000 points for a night at this room rate? On this same trip, I will be in IST and the Hilton's room rate is much much higher - but I can get 3 nights for 34,000 points per night. IST seems to be a no brainer if I stay art a Hilton, but I am unsure of 35K for Prague [I'd simply pay for the room instead]. Thoughts? Ideas about dollar to point ratio where it just make absolute or alternatively, no sense to redeem points

    Cheers
     
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  2. upgrade

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    Many people value HH points at 0.6-0.7 cents/point, although you can yield close to double that in the right circumstances (such as the pilot Points & Money program, evidently not available in Prague). Personally, I would spend the money, especially since a paid stay will also earn additional points you wouldn't get from a reward stay.

    Re IST, how are you coming up with 34K/night x 3 nights? That's a cat 6 property, so I don't see any way those numbers work. You could get a 4-night GLON reward for 136K = 34K/night. Is that what you mean?

    Not to plug too shamelessly, but I have a brand new HHonors reward stay FAQ posted (under my FT nom de guerre, beltway). It's still a work in progress, so please check it out and PM me (MP or FT, either one) or leave a comment in the separate comment thread.
     
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  3. thegrailer
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    thegrailer Silver Member

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    Thanks for the info. I will look at the sites and I will also take a peek at your site.

    You are correct, IST is 4 nights at 34K for GLON. [typo above that I missed]

    As for points for the stay, while nice, I am a Diamond light these days, ie, through Amex spend.

    Cheers -

     
  4. upgrade

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  5. pokerhammy
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    pokerhammy Silver Member

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    If from credit card spend:

    35000 / 3 points per dollar = $11666 spent x 1% cashback = worth at least $116.66 (or 2% = $233.32)
    35000 / 6 ppd everyday purchase = $5833 spent x 1% cashback = worth $58.33 (or 2% = $116.66)

    So the worth depends on what other cards you have and what you could've earned with the amount you've spent. It also depends on how many points you have and what other hotel that's worth more that you may want to spend on. If you have loads of points then it may be a good use of points. If you are saving for Bora Bora then the points are better used there. If the points are not from everyday purchase and you can usually get 2% cashback from spending then the points are not a good use. Etc, etc.
     
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  6. upgrade

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    I find this an extraordinarily odd way to estimate the value of points.

    Yes, points do have an acquisition cost (if bought outright) or an attendant opportuntiy cost (if acquired via card spend, in lieu of some alternative benefit such as cash rebates). And that cost can be determined with reasonable accuracy since it relates to a past event, unlike the future redemption value of points (which depends enormously on how well or poorly one chooses the redemption).

    But cost is plainly not the same as value; if that were true, then the $10 bill I find on the sidewalk on my way to work would have zero value because it cost me nothing. Value is what I reasonably can (or in a specific instance, actually do) get for a given number of points. Those 35,000 points, for example, have the same HHonors redemption value regardless of whether I bought them, picked them for free as a card signup bonus, or earned them from card spend.
     
  7. mattsteg
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    mattsteg Gold Member

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    What you can reasonably expect to redeem for is what to value them at. On the earning side, it's wise to weigh that vs other earning options you're foregoing. Flipping it around, unless you're straight-up buying the points, can be misleading.
     
  8. thegrailer
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    thegrailer Silver Member

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    All interesting answers. I am sitting on 800K+ with a Maldives hope/prayer sometime in the next year or so and have no other major redemptions planned.

    My dilemma if it wasn't clear [and I've pm'd with some folks]: The cost for Prague for 3 nights is south of ~$600. The cost in HHonors points is 105K. Does that relatively low $ cost for 3 nights suggest paying and using points for something that is more costly? Notwithstanding some of the calculations, would you, my fellow frequent traveler, use points or pay $ for the 3 nights? [and if you know that paying $ or using points leads to a better room at the PRG Hilton, pray do tell]

    Cheers -
     
  9. Rambuster
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    Rambuster Silver Member

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    I value my points at ca USD 0.0075 per point.
     
  10. upgrade

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    That's 7.5c/point. Don't you mean USD 0.0075 (= 3/4 c) per point?
     
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  11. Rambuster
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    Rambuster Silver Member

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    Yes,you are right. One zero missing ... Sorry, post corrected.
     
  12. newbluesea
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    newbluesea Gold Member

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    Actually the savings would have to be quite a bit more than $100 a night for me to stay elsewhere.

    Say you and your wife staying.... conservative estimate
    1) Breakfast for two 35 euro ( not even considering the Hilton Prague has one of the best HH lounges in Europe better than Cavalieri or Paris ADT)
    2) Two drinks each in the lounge in the PM = 40 euro
    3) Free internet = 15 euro per day
    We have just shattered the $100 barrier :)

    Icing: better hotel, points earned etc etc etc
     
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