Purchasing Points?

Frequently Airlines and Hotel chains will give members the option to purchase points. As a regular prospect this is a terrible idea, but there is an exception. When a bonus offer is available, purchasing points can be an ingenious move – but only if you have a specific redemption in mind.

To determine whether buying points with a bonus offer is worthwhile, consider the following:

- Calculate the cost per point (CPP) to ensure you're getting a good value

- Compare the CPP to the average market value (currently above 2 cents per point)

- Verify that the bonus offer significantly reduces the cost per point

By doing your due diligence, you can potentially save a substantial amount of money on your desired travel experience.

Example 1:

If a flight costs $500 cash or 25,000 points, the CPP would be ($500 / 25,000) = 2 cents per point.

Example 2:

If a flight costs $500 cash or 25,000 points, but there is a 100% point buy bonus, you would only need to buy 12,500 points which breaks down to ($500 / 12,500) 4 cents per point.

As long as you have imminent bookings and price out your trips properly, buying points with a bonus offer can be a strategic way to maximize your rewards.

Provider	Buy Bonus	End  Date
Airlines
Air Canada Aeroplan	-30%	14-May
Alaska Miles	50%	23-Mar
American Airlines	-35%	N/A
Avianca LifeMiles	160%	31-Mar
Copa Connect Miles	60%	18-Apr
Hawaiian Miles	50%	23-Mar
JetBlue TrueBlue	120%	20-Apr
Lufthansa Miles	50%	31-Mar
Qatar Avios	50%	25-Mar
Southwest Rapid Rewards	-50%	4-Apr
United Mileage Plus	100%	29-Mar
Hotels
Choice Privileges	50%	8-Apr
Hilton Honors	Up to 90% (Targeted)	N/A
IHG One Rewards	100%	29-Mar
LHW Leaders Club	100%	28-Mar
Marriott Bonvoy	45%	30-Mar
World of Hyatt	25%	14-Apr
Wyndham Rewards	80%	15-Apr