We stay in very nice hotels when we travel. No, we aren’t rich…we are just travel-smart. Hotels can be expensive, but there are many options for saving money on the cost.
I spend most of my year using my credit cards to earn points for paying bills, dining out, and buying gas or groceries. Eventually, I will use those points to book flights or hotels. Sometimes I know which program I will need the points for far enough ahead that I can make a strategy to build up my points bank. Otherwise, I focus on earning transferrable points or take advantage of bonus points promotions in the programs I use most frequently.
BUYING POINTS
One of the first things I read about when beginning my foray into points and miles for travel was that buying points is seldom a good idea because it’s usually not a good value. But what I discovered as I went along is that sometimes it is.
If the cost to pay with points is much less than the cost of the room it might be worth it. Especially if you are staying somewhere with 2-3 levels of Taxes or a high Resort Fee which may be included with an award stay.
Tip: If you buy points, you do not have to pay with the card that matches the loyalty program the points are from. Points are generally sold by a third party so you should use a card with the best return rate (2 to 3 points per dollar) on all purchases.
Hotel Math Scenarios for Booking the Same Room
Hotel HYZ is a luxurious oceanfront resort with amazing amenities. Your travel dates are not flexible. What’s the best option to book this hotel if you don’t want to spend break the bank? Here are a few options.
ALL CASH
- Hotel costs $1,089 per night
- + $204.59 in Taxes
- + $50 Resort Fee
- + $65 for valet parking (only option)
- Total for 1 night = $1,408.59
- 2 nights (minimum stay requirement) = $2,817.18
Yikes! No, thank you. Too rich for my blood!
If you choose this option, I hope you will at least earn lots of points or get a fat rebate from booking through a shopping portal or taking advantage of a credit card offer.
PAY WITH POINTS – BUT HAVE TO BUY THEM ALL WITH NO BONUS
- Standard rooms are available for 110,000 points
- You have 0 points
- You purchase points when there is no bonus match. 220,000 points = $2,200
- You do not have to pay taxes or a resort fee on the award stay
- 2 nights parking at $65 = $130
- 2 nights = $2,230 and saves you $587 off the cash rate
Better, but still not there for me.
PAY WITH POINTS – BUT HAVE TO BUY THEM ALL WITH 100% BONUS
- Standard rooms are available for 110,000 points
- You have 0 points
- You purchase 110,000 points with a 100% match so 220,000 points = $1,100
- You do not pay taxes or a resort fee on the award stay
- 2 nights parking at $65 = $130
- 2 nights = $1,230 saving you over $1,500!
This is a better option than paying the cash rate. It is basically like Buy One Night and Get One Free. I would probably go this route if this hotel stay was an important part of our trip and my points bank was empty.
TOP UP YOUR POINTS
- Standard rooms are available for 110,000 points
- You only have 150,000 points
- You top up buying 30,000 points with a 100% match so 60,000 points = $300
- You do not pay taxes or a resort fee on the award stay
- 2 nights parking at $65.00 = $130.00
- 2 nights = $430.00 saving you over $2,387!
I feel like this is a solid option. I would definitely go this route if I had most of the points and could purchase the remainder with a 100% match.
PAY WITH POINTS – YOU HAVE ENOUGH
- Standard rooms are available for 110,000 points
- You have 220,000 points
- You do not pay taxes or a resort fee on the award stay
- 2 nights parking at $65 = $130
- 2 nights = $130 saving you over $2,687.18!!
Happy Dance….Best Scenario (other than using Free Night Certificates)!
More Ways to Save Money on Your Hotel Stay
- A simple way is to have one credit card that earns points that can be transferred to several different hotel programs (like the Chase Sapphire cards or the American Express Green/Gold/Platinum cards).
- Open a credit card for your favorite hotel chain. You can earn points through spending and the card may also provide valuable status or additional money-saving benefits.
- Even if you don’t have a credit card that earns points, you can still sign up for the free hotel loyalty programs at your favorite hotel chains. That will allow you to earn points on current stays which you can redeem later.
- If you buy points, watch for a points match promotion, or click through from a shopping portal that will rebate a percentage of the cost.
- As soon as you know your plans, book a refundable rate (you may need to change or cancel later) for the best price and availability. Often room rates go up as the supply goes down.
- If your hotel charges a Resort Fee you get the benefits even when booking an award night. Know what is included in that fee and take advantage of any items that appeal to you.
- If you earn any Free Night Certificates, try to save them for the most expensive stay allowed.
- Most Hyatt FNC’s are only valid at category 1-4 hotels.
- With IHG you can buy up the difference between a 40,000 points per night certificate and the hotel room rate. I like to squeeze every drop of value out of these redemptions and book during a 20% points discount promotion to get a room that would normally be 48,000 points.
- Hilton FNC’s are uncapped so the sky is the limit as long as there is standard room availability. I like to shoot for the stars with these!
The World According to Dev 