Some links to products and travel providers on this website will earn Traveling For Miles a commission that helps contribute to the running of the site. Traveling For Miles has partnered with CardRatings for our coverage of credit card products. Traveling For Miles and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone and have not been reviewed, endorsed, or approved by any of these entities. For more details please see the disclosures found at the bottom of every page.
Hyatt has launched a points sale which runs through the end of the month and it’s 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 particularly impressive, the final price you pay per point isn’t too bad at all.
The More Important Info
- Sale runs through 30 September 2020
- 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 30 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 bonus 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.
I value Hyatt points at 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. I’ll show you how.
Here’s the current World of Hyatt award chart as it stands right now (don’t forget that Hyatt will be introducing seasonal pricing at some point next year):
- Buying points in this sale and using them to book a top-tier Hyatt property (Category 7) would see you pay approximately $540/night
- Buying points and using them to book a top-tier SLH property (Category 8) 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/upper mid-tier properties that you should probably be focusing on (and possibly the occasional low-tier property). I’m going to use the Great Scotland Yard Hotel in London as an example to illustrate what I mean.
This property falls into Category 6 so an award night here will cost 25,000 points/night and, on a random night next May, an entry-level room at this property will cost a staggering £640 (~$850)…
or 25,000 points:
Using points to book a room on this particular night would see you get approximately 3.40 cents of value out of each point used, 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 $450 for a room that would otherwise have cost ~$850 so you would have saved $400 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 a randomly selected date in March, the Great Scotland Yard Hotel can be booked for £216 (~$285) or 25,000 points.
If you were to use points to make this booking you’d be getting under 1.2 cents of value out of every point you used and that’s not a good idea 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.
What this means is that this is a good opportunity to use a credit card on which you’re working towards a welcome bonus…
…or to use the excellent Blue Business Plus Credit Card from American Express which will earn you 2 points/dollar (up to $50,000 in spending per year).
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 that I gave above with my very first search 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 August 31, 2020 and ends 11:59 pm September 30, 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 30 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.