When Purchasing Hotel Points Can Help You Save Money

You can accumulate hotel points through loyalty programs without needing to stay at a hotel or resort. Kickstart your points with welcome bonuses from co-branded credit cards and keep adding more through your spending. Additionally, points can be earned via shopping portals and through partnerships with airlines and car rental services. However, a less recognized method to gain a substantial amount of hotel points is by buying them directly from the loyalty program.

Four major hotel loyalty programs allow you to buy points directly from their websites: Hilton Honors, IHG One Rewards, Marriott Bonvoy, and World of Hyatt. While purchasing points at their standard price may not usually be wise, taking advantage of promotional sales can be a savvy and economical choice. Here’s all the information you need about the best times to buy hotel points.

Why Consider Buying Hotel Points

Typically, it’s better to earn points rather than buy them. However, there are certain situations where purchasing points can be beneficial.

You might consider adding to your existing points balance to secure a complimentary night at a hotel or resort. Additionally, you may wish to boost your total points to unlock multi-night booking perks. For instance, with Hilton Honors, you can enjoy a free fifth night when booking four consecutive nights with points. Similarly, IHG One offers a free fourth night for three-night point bookings.

In some cases, purchasing and booking with points can be more economical than paying cash for a hotel or resort stay (more details in the examples later). If there's a property you're interested in, comparing the cost in points versus cash could lead to substantial savings, particularly with Hilton Honors and World of Hyatt, which eliminate significant resort fees and taxes on award stays.

Since award bookings often come with favorable cancellation policies, it can be advantageous to buy hotel points instead of paying cash, especially if your travel plans are uncertain. The best cash rates often require prepayment and are non-refundable, while standard award bookings are generally refundable, provided you cancel within the specified timeframe of the loyalty program and/or hotel (which could be as much as seven days or even 24 hours prior to the stay).

Ideal Times to Purchase Hotel Points

Hotel loyalty programs usually sell points at a markup, but during promotions and bonuses, the prices can become much more appealing. These moments are often the best times to buy.

Hilton Honors often has a promotion where members receive a 100% bonus when buying at least 5,000 points, effectively lowering the cost to 0.5 cents per point. While the rules state that members can buy a maximum of 80,000 points each year (which doubles to 160,000 with the bonus), recent promotions have allowed for larger purchases. Buying Hilton points at 0.5 cents each is generally a great deal, but we advise against maxing out unless you're ready to book or are an experienced points user.

IHG also regularly offers a 100% bonus promotion, but their dynamic pricing means fewer travel hacking opportunities compared to Hilton Honors or World of Hyatt. While opportunities do exist, accumulating points without a specific hotel or resort in mind isn't advisable. Likewise, Marriott Bonvoy’s dynamic pricing often diminishes chances for exceptional points redemptions; personally, I’ve found it harder to score deals with Marriott compared to the others mentioned.

Generally, consider purchasing large quantities of points only during sales for any of the major loyalty programs. Be aware of the annual limits on purchases; for instance, World of Hyatt allows bonus points purchases from 2,000 up to 55,000 points per calendar year, while Marriott Bonvoy lets members buy up to 100,000 points annually, before any bonuses.

Analyzing the Costs

While there are numerous instances where buying points is more advantageous than paying cash, there are also many situations where it isn’t. The best approach is to compare the price of a hotel or resort for your desired dates using both payment methods. As mentioned, Hilton Honors and World of Hyatt waive resort fees and taxes on award stays, which might make booking with points more appealing. Remember, award stays don't earn points like paid stays do; however, you can still earn points on-property and count nights toward elite status, though not for the actual cash value of the hotel night.

Real-World Illustrations

I recently organized a family getaway to the Grand Hyatt Baha Mar in the Bahamas for early 2024 to celebrate my mom's milestone birthday. On my chosen dates, a room was priced at over $810 per night. However, at the time of booking, it was only 20,000 World of Hyatt points per night. During that period, World of Hyatt was offering a points sale with a 25% bonus, meaning 40,000 points cost $768 (or $384 per night), effectively halving the room cost. The savings continued because World of Hyatt waived resort fees and taxes on award stays. At the Grand Hyatt Baha Mar, the daily resort fee is $85 per person, along with high hotel taxes, so booking with points saved me several hundred dollars. Ultimately, I booked two nights for 40,000 points, which would have cost $2,023.46 directly from Hyatt (including resort fees and taxes), but I only spent $768 by purchasing points. What a deal!

As another example, I plan to attend Art Basel Miami in December 2023. The Gale South Beach, Curio Collection by Hilton is ideally situated for enjoying the festivities during this vibrant art week. Hotels are typically exorbitantly priced during Art Basel, and this one is no exception, with rates averaging over $700 per night. If I opt to pay cash for a standard room for five nights in early December, the total with a semi-refundable rate comes to $4,261.06. However, the points needed for five nights totals 360,000 (four nights at 90,000 points each plus the fifth night free benefit from Hilton Honors). I currently have 200,000 Hilton Honors points from a Hilton Honors credit card welcome bonus and my spending. If I purchase 80,000 points during Hilton's 100% bonus promotion, I'll receive 160,000 points for $800, providing enough for my expensive five-night stay at a fraction of the cash price. Another win for me!

Key Takeaways

In many instances, opting for hotel points instead of cash at hotels and resorts is a wise decision. If you’ve already tapped out your avenues for acquiring large quantities of points through welcome bonuses, consider buying hotel points during sales. Always calculate whether purchasing points will be more economical than paying cash for your room, and if the numbers favor buying, go ahead!