This article only introduces some of the more popular points programs and a few higher-value ways to use them. For the most detailed lists of redemption options and ways to earn points, please refer to each company’s official website. The evaluation here is based mainly on the following factors:
- Point value: whether the points can be redeemed for high-value flights, hotels, etc.
- Point flexibility: whether they can be converted into other points of similar value, and how broad their use cases are
- Earning speed: this depends on the available earning channels
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Hotel Points Programs
Hotel points are generally rewards that hotel chains give to frequent guests. You can also earn corresponding points by participating in certain hotel promotions. A hotel points program is often evaluated from several angles: point value, point flexibility, and earning speed. In practice, point value is usually inversely related to earning speed, and positively related to flexibility.
- SPG (Starwood Preferred Rewards)
- Point value (high): average hotel redemptions can exceed 2c (equivalent to 1 point redeeming for $0.02, or 10K points redeeming for a $200 hotel stay on average)
- Point flexibility (high): can transfer at up to 1:1.15 to common airline programs including AC, ANA, and AA for award tickets; hotel footprint is also fairly broad.
- Earning speed (low): mainly earned through hotel stays or the corresponding credit card.
- IHG (InterContinental Hotels Group)
- Point value (low): average hotel redemptions are around 0.6c (equivalent to 1 point redeeming for $0.006, or 10K points redeeming for a $60 hotel stay on average)
- Point flexibility (medium): broad hotel footprint.
- Earning speed (high): generous stay promotions, special quarterly promotions, and a dining rewards portal.
- Hyatt
- Point value (high): average hotel redemptions are around 1.6c (equivalent to 1 point redeeming for $0.016, or 10K points redeeming for a $160 hotel stay on average)
- Point flexibility (medium): broad hotel footprint.
- Earning speed (low): mainly earned through hotel stays or the corresponding credit card.
- HH (Hilton)
- Point value (low): average hotel redemptions are around 0.4c (equivalent to 1 point redeeming for $0.006, or 10K points redeeming for a $40 hotel stay on average)
- Point flexibility (medium): broad hotel footprint.
- Earning speed (high): many hotel promotions and many corresponding credit cards.
Airline Miles Programs
The value of airline miles is more complex, because different redemption methods can have a major impact on value. Below are just a few common redemption examples. Airline miles
- UA (United Airline)
- Point value (medium): average flight redemptions are around 1.5c (35K can redeem a one-way ticket from a smaller U.S. city to a smaller city in China; round-trip awards can include a stopover)
- Point flexibility (high): can redeem for UA flights as well as Star Alliance flights (ANA, OZ, CA, AC).
- Earning speed (medium): flight earning is tied to ticket price (slow!), plus credit cards, the UA shopping portal, and dining rewards portal.
- AA (American Airline)
- Point value (high): average flight redemptions are around 1.7c (35K can redeem a one-way ticket from a smaller U.S. city to China). If you have an AA credit card, redemptions can get a 10% rebate.
- Point flexibility (high): can redeem for AA flights and other oneworld alliance flights.
- Earning speed (high): flight earning is tied to flight distance (fast!), plus credit cards, the AA shopping portal, and dining rewards portal.
- BA (British Airline)
- Point value (medium): average flight redemptions are around 1.5c; good for short domestic U.S. flights and flights from certain U.S. cities to Hong Kong.
- Point flexibility (medium): can redeem for AA flights and other oneworld alliance flights, but taxes and fees are often high
- Earning speed (high): flight earning is tied to flight distance, plus credit cards, the BA shopping portal, and many transfer partners.
- ANA
- Point value (high): average flight redemptions are around 1.6c (60K + taxes/fees can redeem U.S.-China flights)
- Point flexibility (medium): can redeem for UA and other alliance flights; taxes/fees are low when redeeming UA
- Earning speed (medium): flight earning is tied to flight distance
Credit Card Points Programs
Credit card points are even more complex, because the best points can often be transferred to hotel and airline programs. Below are just a few redemption examples to help analyze the major credit card points systems.
- UR (Ultimate Rewards) ----Chase Freedom/ink/sapphire preferred/bold
- Point value (high): overall value is 2c; airfare booked through UR travel is worth 1.2c; points can transfer 1:1 to Hyatt and UA
- Point flexibility (high): with a Chase sapphire preferred/ink/bold card, points can be transferred flexibly
- Earning speed (high): use Chase Freedom’s quarterly 5X bonus, Sapphire preferred travel 2X, plus a shopping portal
- MR (Membership Rewards) -----AMEX EP/EDP/PRG/PLT
- Point value (high): overall value is 2c; airfare booked through MR travel is worth 1.2c; points can transfer 1:1 to airline programs such as ANA and AC
- Point flexibility (high): basically any card that earns MR can transfer points, and transfer speed is relatively fast
- Earning speed (high): using Eveyday Proffered, grocery rewards can be as high as 4.5X, gas 3X, and everyday spending 1.5X
- TYP (thank you prefferred)
- Point value (medium): overall value is 1.3c, l booking AA flights can be worth up to 1.6c, and points can transfer 1:1 to Singapore Airlines miles
- Point flexibility (medium): not many transfer partners
- Earning speed (medium): only certain cards offer 3X or 2X on dining and travel (the 5X card has already been discontinued)
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Summary:
- Getting good value from any points program takes some know-how; this article only mentions a few basic redemption methods
- For the same number of points: credit card points > airline miles > hotel points
- The fastest way to earn points in each system is through credit cards (for people who are not hardcore travelers)
- Choose a points system you like and focus your earning there; don’t spread yourself too thin