Redeeming hotel points can be an excellent way to make your travels more affordable and luxurious. However, navigating the complexities of reward programs can be difficult and mistakes can lead to lost value, unexpected fees, and stressful travel experiences. Let’s explore common pitfalls to avoid when redeeming hotel points, ensuring you maximize the benefits and enjoy your stay to the fullest.
Redeem Your Rewards Points Too Quickly
A common mistake when booking hotels with points is not comparing the cash rate to how many points you’ll use. People often use points for popular hotels without checking if the cash rate makes it worthwhile. For example, spending tens of thousands of points on a $200 room might not be the best choice. Use a calculator to divide the cash cost by the points needed; if the value is under half a cent per point, it’s likely not a good deal.
Using Points for Non-Travel Rewards
Hotel points are like currency and can be redeemed for various rewards, not just hotel stays. However, using them for non-travel rewards often yields poor value. For example, Hilton Honors points can be used on Amazon, and Marriott Bonvoy points can be used for gift cards, but both offer just 0.2 cents per point. This is far less than the value you could get when redeeming points for hotel stays, making those redemptions typically a bad deal.
Missing Out by Letting Your Points Expire
While some major hotel chains have paused points expiration, this may change soon. Now is a good time to review the policies of your loyalty programs to ensure your points remain active. Typically, points from Hilton Honors, and IHG Rewards expire after 12 months of inactivity, Choice Privileges and Wyndham Rewards expire after 18 months, and Marriott Bonvoy and World of Hyatt expire after 24 months. Best Western Rewards points don’t expire. Simple activities like shopping through hotel affiliates can keep your points active even while you’re not traveling.
Being Fixed on Certain Travel Dates
Trying to use hotel points on specific dates is common, but a bit of flexibility can offer more options and better value. Many hotel loyalty programs, like Marriott Bonvoy and Hilton Honors, have introduced saver, standard, and peak pricing, resulting in significant award rate differences. For instance, The Ritz-Carlton, Hong Kong, ranges from 62,000 to 100,000 points per night, depending on the date. Similarly, the Conrad Koh Samui ranges from 75,000 to 95,000 points. Flexibility in travel could earn you up to 38,000 points per night.
Overlooking Single-Night Bookings
When using points to book rooms, prices can fluctuate, especially if standard rooms aren’t available for all nights, leading to premium pricing for the entire stay. Experts advise checking rates nightly to avoid this. For example, if a five-night stay has standard rooms available for only four nights, book a suite for just the unavailable night. Sometimes, hotels may upgrade you to the suite for the entire stay. Or try booking two or three-night stays if single nights aren’t available due to minimum-stay requirements.
Not Using Free Night Certificates
Certain hotel credit cards offer award night certificates to members, either automatically or upon reaching spending milestones. The Marriott Bonvoy Boundless from Chase grants a yearly award night worth up to 35,000 points, while the Marriott Bonvoy Brilliant from Amex offers one worth up to 50,000 points. The Hilton Honors Aspire Amex gives a yearly free weekend night for Fridays through Sundays at nearly any Hilton property globally. Certificates generally expire within a year, so use them before they lapse.
Ignoring Benefits of Fourth and Fifth Night Free Promotions
Three major hotel chains offer members discounts on award stays of several nights, saving you tens of thousands of points. Marriott Bonvoy members receive the fifth night free when booking five consecutive nights, a 20% discount. Hilton Honors elite members—Silver, Gold, or Diamond—also enjoy the fifth night free on award stays. Hilton credit cards also provide various elite statuses. IHG Rewards Club Premier cardholders get the fourth night free on awards stays.
Neglecting to Book a Stay Before Hotel Category Updates
Each year, many major hotel loyalty programs reassign some properties to different categories. While some hotels move to lower categories and require fewer points, others shift upwards. For instance, on March 3, the W Aspen changed from a Marriott Bonvoy Category 7 to Category 8, increasing room costs from 44,000–70,000 points to 62,000–100,000 points per night. Booking before this date locks in the lower rate; afterwards, expect to use significantly more points.
Missing Out on Cash and Points Options
Hilton, Hyatt, IHG, Marriott, and Radisson all allow members to mix points with cash for bookings, offering flexibility for those short on points. However, this can sometimes be a drawback. For instance, World of Hyatt award nights vary from 5,000 to 30,000 points, with cash and points options ranging from 2,500 to 15,000 points plus half the nightly rate. While convenient, this might lead to a lower point value, especially during low-occupancy times. For example, at the Category 4 Grand Hyatt in Washington, D.C., you might get better point value by saving your points for higher-rate periods.
Paying Too Much on Premium Rooms or Suites
Some hotel chains offer the option to redeem points for premium rooms or suites, but it’s important to evaluate the value. At the Hilton Austin, a standard king room cost $134 or 26,000 points per night in March. Upgrading to a Skyline View room costs $163 or 55,000 points—more than double the points for just a $29 price increase. Similarly, at the Renaissance Austin, a standard king room costs $116 or 25,000 points, while an executive suite costs $134 or 44,000 points—an extra 19,000 points for just $18 more in value. In both cases, it’s not worth the additional points.
Exchanging Hotel Points for Airline Miles
Many people forget that they can exchange hotel points for miles with various airlines, but due to poor conversion rates, it’s generally not advisable. For example, Radisson Rewards points transfer at a 10:1 ratio to miles with 35 airlines, and Wyndham Rewards points at 5:1 with 11 airlines.
An exception is Marriott Bonvoy, which converts into miles with over 40 airline partners at a typical 3:1 ratio. Transferring 60,000 Marriott points grants a 5,000-mile bonus, yielding 25,000 miles instead of 20,000. While hotel rewards usually offer better value, this can be useful for hitting specific flight rewards.
Choosing Hotel Points Instead of Credit Card Points
Certain credit card points like Amex Membership Rewards, Chase Ultimate Rewards, Citi ThankYou Rewards, and Capital One Venture miles can often be redeemed for hotel bookings, yielding better returns than hotel-specific points. For instance, Chase Ultimate Rewards offers a 1.5 cents per point redemption rate for Sapphire Reserve cardholders. This rate saves over half the points compared to IHG Rewards for a room at the Kimpton Muse Hotel in New York.
Buying Points to Book Hotels
Hotel loyalty programs, similar to airline frequent-flier programs, charge high prices for points—Hilton points cost $10 per 1,000, translating to one cent each, while redemption values hover around 0.4 to 0.6 cents per point. Buying a small number to top off your balance for a luxury stay might be worthwhile; otherwise, consider cash booking options.
Missing the Cancellation Deadline
A major advantage of using hotel points for bookings is the flexibility to cancel if necessary. Many award rates are refundable up to 24 hours before check-in, allowing last-minute changes. However, missing this deadline may result in charges for one night at the “best available rate”— which is often the steepest price —along with taxes and fees.
Failing to Account for Resort Fees
Many hotels in vacation destinations now charge resort fees, while city properties charge “amenity fees” for services like Wi-Fi and gym access. Hilton Honors, World of Hyatt, and Wyndham Rewards typically waive these fees for award stays, but Marriott and IHG do not. For example, The Ritz-Carlton on Maui adds a daily $35 fee for various services, and the Kimpton Canary in Santa Barbara charges the same amount for amenities, even if you don’t use them. Using hotel points can save money, but you must navigate these fees to maximize value.