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Hyatt has been running a points sale since the end of January in which it has been offering World of Hyatt members a discount on the price they pay for points rather than offering the usual bonus points that we often see. What this means is that although the headline number (25%) doesn’t look all that impressive, the final price you pay per point isn’t too bad at all….but you have less than 48 hours left to take advantage of this offer.
The More Important Info
- Sale runs through 29 February 2020 (tomorrow!)
- Get a 25% discount by purchasing a minimum 5,000 points
- World of Hyatt members can buy a maximum of 55,000 points per calendar year (excluding bonuses)
- You must have been a World of Hyatt member for at least 60 days in order to be eligible to buy Hyatt points.
The full terms and conditions have been reproduced at the end of this post and can also be found on the sale page.
One of the better aspects of this sale is that Hyatt doesn’t mess around with the price of points within a given bonus band so, as the latest bouns band runs from 5,000 points to 55,000 points, any number of points that you buy within that band will come at the same cost/point.
Here’s the math:
If you were to buy 5,000 Hyatt points it would cost just $90…
…and $90 for 5,000 points would see you buying points at 1.80 cents each.
At the opposite end of the buying range, if you were to buy the full allowance of 55,000 points it would cost you $990…
…and, once again, you would be buying points at 1.80 cents each.
Is This A Good Deal
Possibly…but only if you know what you’re doing and if you’re prepared put a little effort into working out how you’ll be using any points that you buy.
Note: As we don’t yet know what dates various hotels will operate off-peak/standard/peak award pricing which comes into effect on 22 March 2020 it’s difficult to predict how the cost of future award nights will compare to future cash rates – bear this in mind as you read on.
I value Hyatt points at a conservative 1.4 cents each so it may appear a little strange for me to say that a points purchase at 1.80 cents/point can be a good deal…but it can be.
I use my 1.4 cents/point valuation as a benchmark to show the value I believe I’ll have little or no trouble getting out of any Hyatt points that I have…but that doesn’t mean that I can’t get a lot more value out of them if I put some work in.
Buying points at 1.80 cents and making them work for you requires thought and planning but it can still be a good idea…and here’s how.
Here’s the current World of Hyatt award chart which is valid for bookings made through 21 March 2020…
…and here’s the new standard room award chart (effective 22 March 2020) which shows the various seasonal pricing that Hyatt is introducing:
- Buying points in this sale and using them to book a top-tier Hyatt property (Category 7) during standard season would see you pay approximately $540/night
- Buying points and using them to book a top-tier SLH property (Category 8) during standard season would see you pay approximately $720/night
I consider both of those scenarios to be expensive and I do not suggest buying points in this sale if that’s how you plan to use them.
Ok, sure, if you already have a stay booked at a super-expensive property where a single night can easily cost upwards of $800 (e.g. the Park Hyatt New York or the Park Hyatt Maldives), then it may make sense to buy some points in this sale if you want to add on another night to your stay…but I can’t see the logic in buying points at this price just to book a 1-night stay.
If you’re looking to get real value out of this sale it’s the mid-tier properties that you should probably be focusing on (and possibly the occasional low-tier property) although it’s still far from a certainty that you’re guaranteed to get a fantastic deal.
I’m going to use the Andaz London Liverpool Street as an example to illustrate what I mean.
This property falls into Category 5 so an award night here will cost 20,000 points/night during standard season.
On a random night in September, an entry-level room at this property will cost £394 (~$510) or 20,000 points:
Using points to book a room on this particular night would see you get approximately 2.55 cents of value out of each point used (assuming a standard season rate)…and that’s a pretty great deal if you only paid 1.80 cents per point in the first place.
Effectively you would have paid $360 for a room that would otherwise have cost $510 so you would have saved $150 by buying points in this sale.
Just as this property can prove my point that it can be a good idea to buy points in this sale it can also prove my point that you need to be careful – buying points and then using them without working out the value you’ll be getting is a great way to lose money.
On another date in September, the Andaz Liverpool Street can be booked for £270 (~$350) or 20,000 points (assuming standard season rates)…
…so if you were to use points to make this booking you’d only be getting approximately 1.75 cents of value out of every point you used….and that’s not a great deal if you originally bought those points at 1.80 cents each.
Buying points in this sale can definitely save you money but you need to be selective with your bookings if you’re to guarantee a good return on the money you spend.
Hyatt points sales are processed by Points.com so you’re not going to get a credit card travel/hotel category bonus if you buy points in this sale.
This is a good time to use a card on which you’re looking to earn a welcome bonus (especially if you have recently applied for the big bonuses on the IHG Rewards Club Premier Card or the new United Business Card) or a card whose points you value highly.
My personal preference would be to use the Blue Business Plus Credit Card from American Express (2 points/dollar on the first $25,000 of spending every year) or a strong cash back credit card or even the Chase Freedom Unlimited Card (1.5% or 1.5 Chase Ultimate Rewards Points per dollar).
Two Things To Note
There are two negative aspects of this sale that you should be aware of before you decide to buy points:
- This isn’t the lowest rate at which we see Hyatt sell its currency. There may well be a time this year when Hyatt brings back a sale where points cost ~1.71 cents each.
- Buy buying points in this sale you will have maxed out the number of Hyatt points you can buy in 2020 and picked up just 55,000 points. If you were to buy points in a sale where bonus points are on offer you’ll be able to pick up 55,000 points + the bonus before you’re maxed out for the year (because bonus points don’t count towards the annual limit).
In some cases this sale doesn’t represent a great deal but, as I’ve shown, there will be instances where buying points in this sale can save a World of Hyatt member quite a bit of money…and I found the example I gave above without any trouble whatsoever so it won’t be too hard to find a good deal if you’re prepared to put in a little work.
As always, it all comes down to individual circumstances and math.
If you’re planning a stay in the next few months, you should check award availability, compare the cash rate to the number of points needed, do the math and see if buying points at 1.8 cents each could save you some money – If you’re prepared to do a little work there’s a good chance that it will.
Full Terms & Conditions Per Hyatt
- Offer available with purchases made between 12:01 am ET January 28, 2020 and ends 11:59 pm February 29, 2020.
- Purchase 5,000 or more Bonus Points in a single transaction and get a 25% discount.
- Bonus Points will be awarded upon completion of individual transaction.
- In order to participate in a purchase transaction, you must be a member for at least 60 days to purchase or receive Bonus Points.
- Bonus Points can be purchased in increments of 1,000, up to 55,000 points per calendar year.
- Members can receive points in increments of 1,000, up to 55,000 points per calendar year.
- Additional Bonus Points awarded under this offer do not count towards these maximums.
- Offer may be withdrawn or changed without notice.
- Offer cannot be combined with any other offer.
- Only purchases made online are eligible for the promotion.
- Price includes all applicable fees. GST/HST will be charged to Canadian residents.
- This transaction is completed by Points.com .
- Purchased points are not refundable and transactions are non-reversible.
- Purchased points are applicable toward all World of Hyatt awards.
- Points purchased using this option will post within 48 hours.
- You may purchase World of Hyatt Bonus points in increments of 1,000 up to 55,000 points per calendar year.
- Purchased points do not count toward World of Hyatt elite membership tiers.
- All World of Hyatt Terms and Conditions apply.