As a World of Hyatt Globalist, I have been missing a value enhancement to my World of Hyatt points that were hiding in plain sight. The following corrects that notion.
Point Values Should Be Realistic
The first step for anyone collecting points and miles is to determine their value. Many travel bloggers reveal their full list of point and mile valuations based on a number of criteria. It wouldn’t be prudent (in my opinion) to base point valuations solely on what they could be worth.
For example, a commenter in a group recently discussed how they reached a valuation of nearly 10¢/SPG point because the cost of a hotel in cash was so high in relation to a much lower cost in points. My wife and I once booked tickets and in error, the cost of the redemption was included in an email. The cash price of the two business class tickets to Bali was more than $18,500 for a combined redemption of 220,000 American Airlines miles. I challenge any reader to find a credible source that would value American Airlines Advantage miles at 8.4¢/mile.
Point Values Are Personal
My value for any point currency (American Express Membership Rewards, United Mileage Plus, World of Hyatt etc.) is based on what I would otherwise pay out of pocket for a given cost. I would never pay $1,000/nt for a hotel in the Maldives, at a Park Hyatt or anywhere else – I just wouldn’t do it – therefore the value of my Hyatt points can’t possibly be 4¢/point ($1,000/25,000 points). I would, however, pay $375/nt out of pocket for such a stay or 25,000 points for the stay. For me, Hyatt points are worth about 1.5¢ each.
They may be different for you. If you only stay in 5,000 point/nt Hyatt Place hotels whereby you would otherwise spend $150, it’s totally reasonable to determine the value of your points at 3¢ each. Point values are personal.
Enter: Hotel Confidante – Hyatt Unbound Collection, Miami Beach, FL
I have been clear about my love for Hotel Confidante in Miami from Hyatt’s Unbound Collection. When we stayed there around Christmas of last year, nightly cash rates approached $450/night, a great value redemption for 15,000 points or an excellent redemption for those who hold a free Category 1-4 night (Confidante is a Category 4 and can be an expensive property).
Shoulder season can make Miami hotels very inexpensive, and in the summer, downright cheap. For an upcoming stay, the cost is $144/nt plus tax and extras.
The extras are $44/nt for parking plus tax and a $30/day resort charge plus tax. I don’t mind resort fees for a beachfront property with things to do (games, pool toys, beach chairs). The parking is also reasonable, we will need it, we aren’t going to shop it and valet is fast. It’s not like the Hyatt Regency Denver where valet parking requires staff to move it five spots and not pull it up front for the nearly $50/nt. Altogether, the charges would exceed $246 with taxes.
Gloablists With Hyatt Get More Value From Points
While Hyatt has not been shy about the extra perks Globalists receive when redeeming their points, I hadn’t adjusted my point valuations based on these and I should have. For example, while $144/nt would be a cash rate where I would usually spend dollars not points on a 15,000 point stay when adding in extras and taxes ($102) my new out-of-pocket cost would reach $246 or a value of 1.64¢/point. That crosses my threshold value and if I am flush with World of Hyatt points, it’s an easy decision to save $102 by staying on points instead of paying with cash.
On previous stays where I used a certificate to pay for the night, those additional charges were also waived, the only cost on my bill was a tip for breakfast which was untaxed.
Have you adjusted your point values for award redemption-only cost savings? What’s your valuation of World of Hyatt points?