{"id":19212,"date":"2025-08-08T23:16:29","date_gmt":"2025-08-08T23:16:29","guid":{"rendered":"https:\/\/finderica.com\/?p=19212"},"modified":"2025-08-08T23:16:29","modified_gmt":"2025-08-08T23:16:29","slug":"points-and-miles-valuations-what-to-know","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=19212","title":{"rendered":"Points and Miles Valuations: What to Know"},"content":{"rendered":"
\n
\n

Imagine you\u2019re planning to get a new credit card and you\u2019re weighing two similar options. Both offer comparable benefits and charge the same annual fee. But one card offers a welcome bonus of 80,000 points, while the other offers a welcome bonus of 100,000 points. Based on those bonuses, which card would you choose?<\/span><\/p>\n<\/div>\n

\n

The card that comes with more points may seem like the obvious answer, but the reality is that you\u2019re missing a crucial piece of information: You can\u2019t tell which bonus is better without knowing how much the respective points are worth. Depending on the value of the points each card earns, the smaller welcome bonus could actually be worth more.<\/span><\/p>\n<\/div>\n

\n

Knowing the value of points and miles is a vital step toward using them wisely, which is why <\/span>SS publishes valuations<\/span> of popular airline, hotel and credit card rewards. Here\u2019s how you can use those valuations to your benefit.<\/span><\/p>\n<\/div>\n

How to use valuations for award travel<\/span><\/h2>\n
\n

Knowing the value of your currency is essential in any transaction. Here\u2019s how points and miles valuations can assist you in booking travel.<\/span><\/p>\n<\/div>\n

Decide whether to book with points or cash<\/span><\/h3>\n
\n

Award travel creates opportunities to save money, but just because you can book a trip with points or miles doesn\u2019t mean you should. Some award redemptions are phenomenal and some are dismal, with a lot of territory in between. Valuations are the key to figuring out where a given award lies on that spectrum.<\/span><\/p>\n<\/div>\n

\n

You can use <\/span>our flight calculator<\/span> to figure out whether to book flights in points or cash. Or you can do the calculation yourself: (Cash price – fees when booking with points)\/number of points.<\/span><\/p>\n<\/div>\n

\n

Suppose you\u2019re booking a long weekend visit to the University of Arizona in March of 2026. You want to be close to campus, so you decide on the <\/span>Graduate by Hilton<\/span> Tucson hotel. After taxes, the total cost for three nights in a 1 King Bed room is $1,319.27.<\/span><\/p>\n<\/div>\n

\n
\n
\n
\n
<\/div>\n<\/div>
<\/figcaption><\/figure>\n<\/div>\n<\/div>\n
\n

However, you have a stash of <\/span>Hilton Honors points<\/span>, so you check the award rate and see that you could instead book the same stay (with a comparable cancellation policy) for 165,000 points.<\/span><\/p>\n<\/div>\n

\n
\n
\n
\n
\"File,<\/div>\n<\/div>
<\/figcaption><\/figure>\n<\/div>\n<\/div>\n
\n

Dividing the cash price by the award price yields a redemption value of just under 0.8 cents per point. SS\u2019s valuation for Hilton Honors is <\/span>0.6 cent<\/span> per point; by that metric, booking an award provides better than expected value in this case.<\/span><\/p>\n<\/div>\n

\n

For another example, consider an American Airlines economy flight from Chicago to New York LaGuardia in October 2025. This nonstop itinerary is available for $229.97 round-trip.<\/span><\/p>\n<\/div>\n

\n
\n
\n
\n
\"Text,<\/div>\n<\/div>
<\/figcaption><\/figure>\n<\/div>\n<\/div>\n
\n

Alternatively, you could book the same flights for 17,000 <\/span>AAdvantage miles<\/span> plus $11.20 in fees.<\/span><\/p>\n<\/div>\n

\n
\n
\n
\n
\"Page,<\/div>\n<\/div>
<\/figcaption><\/figure>\n<\/div>\n<\/div>\n
\n

This award offers a return of approximately 1.3 cents per mile, whereas SS\u2019s valuation for AAdvantage miles is <\/span>1.6 cents<\/span> apiece. That means the award provides lower than expected value, so if your decision rests solely on that valuation, then paying cash is the better option.<\/span><\/p>\n<\/div>\n

\n

But valuations don\u2019t exist in a vacuum, and there are other factors to consider when assessing the value of an award. In the case of booking the American flight, redeeming miles provides a <\/span>more flexible cancellation policy<\/span>. You can cancel and get a full refund so long as you do so before the first flight departs. You can also cancel the cash fare, but you\u2019ll be refunded in American Airlines credit that expires after a year. That distinction makes the award flight more enticing, especially if your plans are tentative.<\/span><\/p>\n<\/div>\n

\n

Apart from a more favorable cancellation policy, you might also prefer to book an award if you\u2019re worried about <\/span>points expiring<\/span> or you\u2019re looking to keep cash costs down. <\/span><\/p>\n<\/div>\n

\n

On the other hand, you might lean toward paying cash if:<\/span><\/p>\n<\/div>\n

\n