You can earn 50,000 Aeroplan points back when you redeem for hotel stays, but is this truly a worthwhile offer?

The Air Canada Aeroplan loyalty program is providing members with up to 50,000 points back when they use their Aeroplan points for hotel bookings.

Sign up online and make your reservation by Sept. 30, 2024, for travel between Sept. 3, 2024, and Feb. 28, 2025, to qualify for the following points rebates:

• Receive 10,000 points back when you redeem a minimum of 40,000 points for your stay
• Get 25,000 points back when you redeem at least 80,000 points for your stay
• Earn 50,000 points back when you redeem at least 150,000 points for your stay

Additionally, Aeroplan elite members will enjoy an extra 2,500 points back.

There's no cap on how often you can earn points back during this promotion. The points rebate will be credited to your Aeroplan account within six weeks after your stay, so ensure you have enough points before booking.

If you possess Air Canada's Aeroplan® Credit Card from Chase, you’ll enjoy a complimentary fourth night when redeeming points for hotel stays, enhancing the attractiveness of this offer.

At TPG, we usually advise against using airline points and miles for hotel bookings, so is this seemingly generous offer actually worthwhile?

Using Aeroplan points for hotel stays without an Aeroplan credit card

If you don’t possess the Aeroplan Credit Card from Chase or plan to book only up to three nights, you won’t qualify for the fourth-night-free offer.

For a two-night stay at SLS South Beach in Miami Beach, Florida, you can redeem 126,700 Aeroplan points for a Superior City View King room. This rate includes taxes and fees but is non-refundable.

With this promotion, you’ll get 25,000 points back (by redeeming between 80,000 and 150,000 points), making your net cost 101,700 Aeroplan points after the rebate is processed post-stay.

Alternatively, you can book the same room type with the same conditions directly through Accor for $931.04.

With this ongoing promotion, your 101,700 Aeroplan points would equate to $931.04, valuing them at 91 cents each.

Considering TPG values Aeroplan points at 1.5 cents each according to our September 2024 valuations, redeeming for just 91 cents doesn't make the most of your points.

Using Aeroplan points for hotel stays with an Aeroplan credit card

If you intend to book four nights with points and have the Aeroplan Credit Card, the value changes significantly, as you benefit from the fourth night free feature that comes with the card.

If you’re considering a four-night stay at the same hotel, SLS South Beach, you can book the Superior City View King room for 189,950 points after applying the free night benefit from the credit card.

With this promotion, redeeming at least 150,000 points for a hotel stay will earn you 50,000 points back. Additionally, cardholders automatically receive Aeroplan 25K elite status for the rest of this calendar year and the following one.

Cardholders will also get an extra 2,500 points back, bringing the total out-of-pocket expense to 137,450 points after rebates.

You could also reserve the same hotel room directly with Accor for $1,862.08 on the same dates and under the same conditions.

By redeeming 137,450 Aeroplan points for this stay, you would effectively save $1,862.08, which values your points at 1.35 cents each. This aligns more closely with our 1.5-cent valuation of Aeroplan points, representing a respectable, if not extraordinary, redemption.

How to accumulate Aeroplan points

New applicants for the Air Canada Aeroplan Credit Card can earn 75,000 bonus points after spending $4,000 in the first three months of opening their account. Additionally, they can receive 25,000 bonus points after spending $20,000 within the first 12 months for an annual fee of just $95. With this card, you’ll also earn:

• 3 points for every dollar spent at grocery stores, on dining, and for purchases made directly with Air Canada
• 1 point for every dollar spent on all other purchases

The card comes with a variety of additional benefits, including monthly bonus points, lounge access, discounted award rates, and upgrade credits.

You can also transfer the following credit card rewards to Aeroplan at a 1:1 ratio:

• American Express Membership Rewards
• Bilt Rewards
• Capital One miles
• Chase Ultimate Rewards

This means that the following cards currently provide excellent welcome bonuses with rewards transferable to your Aeroplan account:

• The Business Platinum Card® from American Express
• The Platinum Card® from American Express
• American Express® Gold Card
• Capital One Venture Rewards Credit Card
• Capital One Venture X Rewards Credit Card
• Chase Sapphire Preferred® Card

Final thoughts

Aeroplan's latest promotional offer allows members to earn up to 50,000 points back when redeeming points for hotel stays.

For short stays where the fourth-night-free benefit doesn't apply, this is not an ideal way to use your Aeroplan points. You typically gain more value by redeeming Aeroplan points for flights, particularly with partner airlines.

If you hold the Aeroplan Credit Card and plan to book four or more nights, this promotion provides a reasonable but not exceptional way to redeem Aeroplan points.