Guide to Travel Points and Miles Value in 2023?

RUMAHBERSIH.ID – We analyzed the fee of 27 one-of-a-kind loyalty programs’ factors and miles to help you make smart cash moves.

Making the most of travel rewards requires some perception of the basic questions, like how plenty each reward forex is worth. Earning 100,000 factors sounds great, but what does that imply in phrases of dollars?

To find out, NerdWallet performed a comprehensive, data-driven evaluation of 15 airlines, seven lodge applications and 9 credit score card rewards programs. We in contrast money and award bookings throughout many dates and cities to determine how a lot true cost you can expect to get from any given factors or miles.

How factors and miles valuations work

In essence, factors and miles valuations are the goal cash values utilized to journey rewards currencies when redeeming.

Unlike many factor and mile valuations, ours are drawn from real-world data. They are no longer hypothetical or maximized values based on idealized conditions, however actual estimates of how many cents per point or mile you can anticipate to get when making award bookings.

Basically, we appeared up hundreds of travel bookings the usage of both cash or miles, and at once calculated the results.

For determining the cost of airline miles and motel points, we picked the seventy fifth percentile value as an alternative than the common or median. This means that for every 4 searches, we picked the one that supplied the absolute best value. We accept as true with this displays how vacationers save for award bookings — through evaluating cash and factor redemptions across several dates.

Consider these values a “baseline” for what you could really get when the usage of your award currency to book normal journeys (i.e., we’re not limiting our search just to travel preferences where you would acquire outsize value).

How plenty are airline miles worth?

Keep in idea that the airline points values are based on foremost cabin economy tickets and eliminate top rate cabin redemptions.

Hotel factor values

The excellent motel factor price goes to Hyatt at 2.8 cents. This is nearly 5x in value greater compared to the lowest on the rung, Hilton, and nearly a full cent higher in value than the 2021 Hyatt valuation.

Credit card point values

Because transferable deposit card points provide more complexity and fee range than preferred travel rewards from motels and airlines, we offer two separate values for each software or card:

Baseline value. This is the promised cost from the issuer when the usage of the factors to book journey at once with their inside tools, such as the usage of Chase Ultimate Rewards® points to e book journey thru the Chase tour portal.

NerdWallet value. This is a combination of the baseline price and the value of every programs’ highest-value transfer partner (per the table above).

How factors valuations have changed over time

Airlines

A few magnificent trends emerged in the course of the pandemic.

Airline miles are retaining their value, but not preserving up with inflation. First, mile valuations have typically multiplied seeing that 2020. This can also be due to inflation affecting the rate of money airfare, even though that can’t tell the whole story because airfares had been low-cost in 2021. This runs counter to the common notion that airline miles inevitably devalue over time. For the closing few years, they haven’t.

There are fewer and fewer outliers. The difference in price between programs is collapsing. Most airline miles are now well worth between 1.3 cents and 1.5 cents, which is a narrower range than preceding years.

Southwest, dethroned. Southwest Airlines used to stand atop these valuations, but now it shares its cost with three other airlines: American, Delta and JetBlue. American Airlines in particular has considered a great amplify in value, rising 50% on account that 2019.

Hotels

Hotel points have followed the same trend as airline miles, with values ticking up average through the last various years.

Hyatt’s award chart means higher value for redemptions. World of Hyatt usually gives higher-value factors than the competition, and the difference has solely extended this year. Hyatt is now the solely company imparting a constant award chart, and this skyrocketed the price of its points for the duration of the inflation-intensive duration in which the data used to be collected.

Marriott tendencies downward, but again. On the flip aspect is Marriott Bonvoy, which has devalued considerably considering the fact that 2019. Bonvoy points are now worth solely slightly greater than Hilton Honors points, which would have been not possible earlier than the pandemic.

Research methodology

We amassed real-world data on heaps of flights and lodge stays to determine these values.

We compared money prices to award redemptions for the equal flights and rooms. For example, we cross-referenced the cost of flying round-trip from New York to Los Angeles the use of both money or award miles. Then, we divided the fee of the cash tickets by way of the price of the award tickets to decide a “cent per mile” cost for every flight.

These searches were made in August 2022.

Airline valuation methodology

We in contrast essential cabin fares across all airlines. We did not encompass simple financial system fares.

Routes

  • Three of the busiest routes from the airline’s hub.
  • Three quick routes (under 650 miles).
  • Three mid-length routes (651-1,500 miles).
  • Two trans-continental routes (over 1,500 miles).
  • One route from a hub to a small airport.
  • Ten worldwide routes.

Dates

  • For every airline, we selected three dates for comparison:
  • Within 15 days of departure.
  • Six months out.
  • During top wintry weather vacation travel (Dec. 22-29).

Hotel valuation methodology

For both cash and reward bookings, we chosen the lowest-priced refundable room.

Destinations

  • We selected 5 major cities and 5 midsize cities:
  • Major:
  • New York.
  • Los Angeles.
  • Chicago.
  • Philadelphia.
  • Dallas.
  • Midsize:
  • Akron, Ohio.
  • Scottsdale, Arizona.
  • Tampa Bay, Florida.
  • Buffalo, New York.
  • Modesto, California.

For every hotel chain, we selected brands from three categories: budget, mid-tier and luxurious (as determined by way of our in-house experts). We chosen character accommodations from every class in every city, when available.

Dates

We chosen two timeframes for each cash and reward bookings:

  • Within 15 days of travel.
  • Four months out.

Credit card valuation methodology

To determine the value of savings card points, we considered:

  • The fee of these factors when used to book travel directly with the savings card’s journey portal.
  • The price of the airline and hotel factors to which these factors can be transferred, when relevant (based on the separate analyses above).
  • The number of top-tier tour transfer partners, as determined through our specialist panel.

The ordinary price is decided as: A weighted common between (1) and (2), with the weight decided via (3). The application with the biggest number of high-value companions receives a one hundred percent weight on (2), and a software with zero high-value partners receives a 50% weight on (2).

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