If you’ve ever looked at a flight or hotel and thought, “Should I use my points or just pay for this?”, you’re not alone. We make this decision on every single trip, and it’s one of the most common questions we get!
The truth is, there’s no one-size-fits-all answer. But over time, we’ve created a simple system that helps us decide quickly and confidently.
If you’re newer to points and miles, don’t worry. We’re going to keep this simple and walk you through real examples so you can start making better decisions right away!
Start With The Value
Points are like a form of currency. Just like cash, they have value – but that value changes depending on how you use them!
Simple equation to calculate value per point:
Examples:
- A flight costs: $500 or 25,000 points → you’re getting 2 cents per point
- A hotel costs: $200 or 40,000 points → you’re only getting 0.5 cents per point
General Rule to Live By:
For both flights and hotels, we always try to make our points worth at least 1.5 cents per point … anything over 2 cents per point is good value!
When Cash Wins
Using points for cheap bookings often gives very low value. Something to keep in mind: just because you can use points doesn’t mean you should!
Examples of “Bad” Point Redemptions:
- $120 flight → 15,000 points (0.8 cents per point!)
- $90 hotel → 12,000 points (0.75 cents per point!)
Rule of Thumb:
If the price feels extremely affordable in cash, it may be better to save your points!
When Points Win
Points really shine for expensive bookings – flights or luxury hotels – unlocking experiences that might not feel worth paying for in cash.
Examples of Good Point Redemptions:
- Business class flight: $3,000 → 70,000 points (4.2 cents per point!)
- Luxury hotel: $1,000/night → 50,000 points (2 cents per point!)
Points tend to work best in situations where you’re getting higher value per point and upgrading your overall travel experience. This is where they really start to feel worth it. Instead of just saving a little money, you’re often unlocking something you might not have paid for otherwise, which gives you more value for every point you use!
Because of that, we usually save our points for bigger, more impactful redemptions. This often includes long-haul international flights, especially in business or first class, as well as high-end hotels and resorts where cash prices can be much higher.
Always Check Transfer Partners
This should be your default, not the exception!
If you take one thing from this post, let it be this: transfer partners should almost always be your first stop when booking with points.
If you have points through programs like Chase, American Express, Citi, or Capital One, you typically have the option to transfer those points directly to airline or hotel partners. THIS is where the best value lives!
Booking through a credit card portal might seem easier, but in most cases, it gives you lower value for your points. The same flight or hotel can often cost significantly fewer points when booked through a transfer partner.
For example, we’ve seen flights priced at 50,000 points in a portal that drop to around 30,000 points when booked through an airline partner. That’s a big difference for the exact same seat!
The only time we typically use a portal is when there’s a specific benefit tied to it, like your credit card offering a $300 annual travel credit that must be used through the portal. Outside of that, we always transfer points to transfer partners.
One important thing to keep in mind: only transfer points when you are ready to book and have confirmed availability. Once points are transferred, you usually can’t move them back!
Flexibility Matters
Something else a lot of people overlook … points can actually be easier to change! Point bookings often come with more flexibility as opposed to cash bookings.
For example, point bookings can provide:
- Easier cancellations
- Points refunded back to your account
- Fewer penalties for changes
Let’s say you’re planning a trip but not 100% sure on dates … using points can give you peace of mind because it’s often easier to adjust your plans later!
Our Simple Rules
Use Cash When:
- Prices are low
- Value per point is poor
- You’re looking to earn more points
Use Points When:
- Prices are high
- Value per point is strong
- You want more flexibility
Final Thoughts
Start simple, then improve. Even just asking yourself, “Am I getting good value for these points?”, will put you ahead of most travelers. Over time, you’ll spot better opportunities and feel more confident in your decisions!
If you want help deciding whether to use points or cash for a specific trip, drop your questions in the comments – we’re happy to help!
