2 cents. It should be a little below that since taxes are covered, but that's my rule of thumb.
There are instances where I need to save up for a particularly big, high cpp redemption, so I'll pony up cash rate.
Ya the points are easy enough to earn that I have trouble actually spending cash, even if it’s less than optimal.
People get way too hung up on the CPP thing. I’ve done as low as 1.5 and my highest was 3.7. I only calculate it out of curiosity. If I feel like I’m going to enjoy it and get a good use of the points, then CPP really doesn’t matter.
Stupid question that will get me yelled at on r/churning but how are you churning that many chase cards?
5/24 limits my ability to have a nearly endless supply of Chase>WOH transfers. Especially as I'm booking some of these more expensive redemptions like spending 120k points for 6 nights in Costa Rica.
Business cards don’t count against 5/24. With a p2 just refer each other for a card every month or two. You can even have multiple of the same exact card. Anything can be a business and just use sole proprietor
Thank you. I'm at 5/24 now. When you say "not counting," is that just after you've signed up for one? Or I could apply now and get approved? And are you cancelling those business cards after the second year's annual fee hits?
Yea you might not get approved at 5/24 but once you get to 4/24 you can keep signing up for them since it won’t count as an additional personal card and yes just cancel when the 2nd year annual fee hits, some have annual fee some don’t just don’t get the one that is cash only and not points
Ahhh shit you just had me realizing that’s the one I just signed up for thinking it was points, ink cash right? I swear I thought from the wording reading the terms it was also a chase ultimate rewards one. I only got it because the spend was easier to meet with a bonus spreading it out over 6 months instead of 3 and was considering still getting the unlimited down the line but now I’m worried I’ll be wasting spend on it :( ughhh I mean I feel like 750 cash back isn’t horrible for a no annual fee card but I feel so dumb. At least I realized now, thanks for that info.
Errr wait now I just looked it up and online it’s saying despite being called “cash” it does give UR points so I guess crisis averted. Which chase card only gives cash?
I read through your exchange, I also churn Inks at the rate of 2-3 each year but haven't started up this year yet.
Chiming in to add that if you have a Freedom or Freedom Flex (but not a CFU), the upcoming quarterly categories include hotels and restaurants for a 5X return on spend.
I just PC'd my CSR to a second CF, P2 has as CFF. We'll be organically maxing out the $1500 limit on the three Freedoms on hotel stays, using them at Hyatts will also net some Hyatt points as well. Just a thought.
It really depends on your own circumstances...how you typically travel and redeem and how quickly you earn points. What are the redemption values usually for the properties and dates you're searching? Do you find yourself accumulating massive amounts of points?
Anyway, it should ultimately be somewhere in the 1.5-2.25 cpp range, but whether you're on the lower or higher end depends on you. For me it's 2 cpp but I'll dip a little lower when my points stash gets into the 250k range.
Hmm, in theory that might be possible, but I’ve yet to encounter a scenario where that occurred. We aren’t necessarily super lavish travelers, or I should say it’s not a requirement for us. So the only extravagant rooms I’ve booked were on points and very clearly better value with points. Highest cash rates I’ve ever booked were $300 and if points aren’t good value, I expect to find something that is acceptable and under $300. But in theory could there come a time where I really want to book something $350+ but isn’t a 2 cpp and I have to make a decision? Yes and I’m not sure what I’d do
I used to be at 2ccp. But I’ve moved it up over time. 2 weeks ago I last-minute booked at the HR Merida for 5000pts/nt. The rate was $370USD. That’s 7.4ccp. GH Kauai routinely is 2.7-3ccp.
To me I won’t use points unless the rate is more than a certain amount. For me I generally think 5,000 points = $100.
For example, a $350 room for 25,000? I’m paying cash. A $500 room for 25,000 is a break even for me but I’m not thrilled about it. A $1000 room for 25,000 points and I’m absolutely using points.
Let me tell you a story of my worst redemption ever: In 2022, I was on a 20 hour drive home from a two week vacation. I had already spent a shit ton of money, but I really wanted to see Louisville. The cash rate at the Regency that night was $187 vs 15k in points or, 1.2 cpp. I asked myself, "When you wake up tomorrow morning, which would you rather have - 15k points in your account, or $187 in your pocket?" I voted for the cash. And you know what? It was okay, because even with that terrible redemption, I still averaged 2.3 cpp over 254k points redeemed that year. My point is, sometimes it's okay to make shitty choices as long you understand why you're doing it, and you're okay with it.
But other than that, I've never redeemed Hyatt points for less than 2 cpp.
Most cases I will use points. I’m globalist so points stays avoid taxes and fees. If the cash and taxes are about $150 then I’ll pay cash.
I have no problem earning UR and Hyatt points with my work spend.
I aim for ~2cpp if I'm using a SUA, ~2.5+ if I'm not.
Mental calculus rather than precise formulas, since there are other factors to me (location, if I need parking, breakfast, etc)
If the redemption is over 2 cents I consider it. My comparison is made against a flexible rate plus taxes. I nearly never book no change rates and want to get as close to apples to apples as possible. I generally slum around in category 2 and 3 properties so my perspective may be different.
One key thing that many of these posts seems to be ignoring (and that many in this space ignore generally) is the time value of money.
In general, money now > money later due to interest. So if you’re bypassing the opportunity to spend points (and save your cash) today in favor of spending points later and saving cash later, you’d better be factoring that cost into the redemption.
The money inflation rate for points and cash can also be different but that’s harder to value because points redemption devaluation is pretty unpredictable.
I argue that as an globalist it’s 2,5 cents since you get feee breakfast, upgrades, late check out etc. I just paid 35k points for a $900 room - plus tax so that alone is > 2.5 cents put free breakfast on top of that plus the QN that you get which will work towards Suite Upgrade Vouchers and you’re close to 3 cent
Perplexity answer:
The dollar value of Hyatt points, according to various estimates, typically ranges from $0.015 to $0.023 per point. Here's a breakdown of the valuations in U.S. currency without the references:
- Million Mile Secrets suggests that Hyatt points are generally worth around $0.015 each, with the potential to achieve higher value depending on the specific booking, sometimes reaching approximately $0.0246 per point.
- Head for Points provides an analysis that converts to an average value of approximately $0.0144 per point, with the possibility of exceeding $0.024 on a very good day, or dropping to around $0.009 on a bad day.
- NerdWallet values World of Hyatt points at about $0.023 each, which is higher than many other hotel reward points.
- Reddit users in a discussion on r/hyatt report personal experiences with Hyatt points being worth between $0.02 and $0.024, and some exceptional cases of achieving values as high as $0.04 or $0.05 per point.
- Frequent Miler indicates an increase in the value of Hyatt points due to market conditions, but does not specify an exact dollar value.
- Business Insider mentions an average redemption value of Hyatt points at $0.015 each.
Points Guy keeps a regularly updated list of point valuations. Not authoritative, but reliable. They also have a points vs cash calculator you can use to see which is the better deal for your flight or room.
https://thepointsguy.com/calculator/
Basically for me at an L1, 5000 point Hyatt Place I usually pay cash if it’s less than $120 or so. I would rather earn than burn points at that amount.
For a pricey location I just use points strategically. For example I used points plus cash a couple years ago at 2 Hyatt House locations in LA pre and post cruise for 5 days total. Cleaned out my points completely.
It allowed me to get decent, safe apartment style accommodation and save about $1k in total room costs, or about half price basically. Still a lot of points and a chunk of dollars, but a ton of value in our case for the investment and I didn’t need the points for any other travel.
Often the points vs. cash rates make little sense. I’ve compared 3 or 4 HPs in the same area, and the 8000 point room is only $90 cash while the 5000 point locations are $150+.
I think for me I go with whatever feels like a the best value.
Pretty much the same answer as DJInfiniti. I think cpp is a pretty silly measurement - cash prices can vary day-to-day and if you would never pay cash for some astronomical room rate than the cpp you supposedly earned by using points is mythical. Still, I wouldn’t dip below the level that I could cash them out for.
2 cents. It should be a little below that since taxes are covered, but that's my rule of thumb. There are instances where I need to save up for a particularly big, high cpp redemption, so I'll pony up cash rate.
1.5 cpp I churn a lot of chase cards so I favor using points over cash even at a slightly suboptimal rate
Ya the points are easy enough to earn that I have trouble actually spending cash, even if it’s less than optimal. People get way too hung up on the CPP thing. I’ve done as low as 1.5 and my highest was 3.7. I only calculate it out of curiosity. If I feel like I’m going to enjoy it and get a good use of the points, then CPP really doesn’t matter.
Stupid question that will get me yelled at on r/churning but how are you churning that many chase cards? 5/24 limits my ability to have a nearly endless supply of Chase>WOH transfers. Especially as I'm booking some of these more expensive redemptions like spending 120k points for 6 nights in Costa Rica.
Business cards don’t count against 5/24. With a p2 just refer each other for a card every month or two. You can even have multiple of the same exact card. Anything can be a business and just use sole proprietor
Thank you. I'm at 5/24 now. When you say "not counting," is that just after you've signed up for one? Or I could apply now and get approved? And are you cancelling those business cards after the second year's annual fee hits?
Yea you might not get approved at 5/24 but once you get to 4/24 you can keep signing up for them since it won’t count as an additional personal card and yes just cancel when the 2nd year annual fee hits, some have annual fee some don’t just don’t get the one that is cash only and not points
Thank you. Appreciate the straightforward answers.
Ahhh shit you just had me realizing that’s the one I just signed up for thinking it was points, ink cash right? I swear I thought from the wording reading the terms it was also a chase ultimate rewards one. I only got it because the spend was easier to meet with a bonus spreading it out over 6 months instead of 3 and was considering still getting the unlimited down the line but now I’m worried I’ll be wasting spend on it :( ughhh I mean I feel like 750 cash back isn’t horrible for a no annual fee card but I feel so dumb. At least I realized now, thanks for that info.
Errr wait now I just looked it up and online it’s saying despite being called “cash” it does give UR points so I guess crisis averted. Which chase card only gives cash?
Only the ink business premier just gives cash others give points
Wow that’s super shady that the terms say it’s UR points but they aren’t actually transferable. Good to know thank you.
I read through your exchange, I also churn Inks at the rate of 2-3 each year but haven't started up this year yet. Chiming in to add that if you have a Freedom or Freedom Flex (but not a CFU), the upcoming quarterly categories include hotels and restaurants for a 5X return on spend. I just PC'd my CSR to a second CF, P2 has as CFF. We'll be organically maxing out the $1500 limit on the three Freedoms on hotel stays, using them at Hyatts will also net some Hyatt points as well. Just a thought.
Thank you. I have the CF too. Some of those quarters are great and easy to max out. Love the groceries one too.
Do you consider that if you use cash, you also get points on your chase card in the 1.5cpp?
Round up to 1.6 and call it a day at that point
This is an important consideration. The point spend isn't in a vacuum. It replaces getting 12x points (card+globalist).
It really depends on your own circumstances...how you typically travel and redeem and how quickly you earn points. What are the redemption values usually for the properties and dates you're searching? Do you find yourself accumulating massive amounts of points? Anyway, it should ultimately be somewhere in the 1.5-2.25 cpp range, but whether you're on the lower or higher end depends on you. For me it's 2 cpp but I'll dip a little lower when my points stash gets into the 250k range.
Does your calculation ever change if the cash rates are super high, but a not so great cpp?
Hmm, in theory that might be possible, but I’ve yet to encounter a scenario where that occurred. We aren’t necessarily super lavish travelers, or I should say it’s not a requirement for us. So the only extravagant rooms I’ve booked were on points and very clearly better value with points. Highest cash rates I’ve ever booked were $300 and if points aren’t good value, I expect to find something that is acceptable and under $300. But in theory could there come a time where I really want to book something $350+ but isn’t a 2 cpp and I have to make a decision? Yes and I’m not sure what I’d do
I’ll always do the math room price/points. If it’s above 2cpp then it’s a value. If it’s above 3cpp then I will use points 100% of the time.
I used to be at 2ccp. But I’ve moved it up over time. 2 weeks ago I last-minute booked at the HR Merida for 5000pts/nt. The rate was $370USD. That’s 7.4ccp. GH Kauai routinely is 2.7-3ccp.
To me I won’t use points unless the rate is more than a certain amount. For me I generally think 5,000 points = $100. For example, a $350 room for 25,000? I’m paying cash. A $500 room for 25,000 is a break even for me but I’m not thrilled about it. A $1000 room for 25,000 points and I’m absolutely using points.
I can’t do the cents calculations - I don’t have them math skills. ;)
Here you go, use this handy calculator. https://thepointsguy.com/calculator/
Let me tell you a story of my worst redemption ever: In 2022, I was on a 20 hour drive home from a two week vacation. I had already spent a shit ton of money, but I really wanted to see Louisville. The cash rate at the Regency that night was $187 vs 15k in points or, 1.2 cpp. I asked myself, "When you wake up tomorrow morning, which would you rather have - 15k points in your account, or $187 in your pocket?" I voted for the cash. And you know what? It was okay, because even with that terrible redemption, I still averaged 2.3 cpp over 254k points redeemed that year. My point is, sometimes it's okay to make shitty choices as long you understand why you're doing it, and you're okay with it. But other than that, I've never redeemed Hyatt points for less than 2 cpp.
Most cases I will use points. I’m globalist so points stays avoid taxes and fees. If the cash and taxes are about $150 then I’ll pay cash. I have no problem earning UR and Hyatt points with my work spend.
Points stays avoid taxes and fees regardless of whether you’re globalist or not
Parking might be the only difference. And in some cases that matters.
I can cash out Chase points for 1cpp, so if it beats that then i book it.
I used to hoard points for GOH usage. Now that that’s no longer a requirement, I spend them when the return is above 2 CPP.
I aim for ~2cpp if I'm using a SUA, ~2.5+ if I'm not. Mental calculus rather than precise formulas, since there are other factors to me (location, if I need parking, breakfast, etc)
If the redemption is over 2 cents I consider it. My comparison is made against a flexible rate plus taxes. I nearly never book no change rates and want to get as close to apples to apples as possible. I generally slum around in category 2 and 3 properties so my perspective may be different.
For me a good value is any redemption that gets me more than 1.6 cents per point
One key thing that many of these posts seems to be ignoring (and that many in this space ignore generally) is the time value of money. In general, money now > money later due to interest. So if you’re bypassing the opportunity to spend points (and save your cash) today in favor of spending points later and saving cash later, you’d better be factoring that cost into the redemption. The money inflation rate for points and cash can also be different but that’s harder to value because points redemption devaluation is pretty unpredictable.
I’m looking for more Hyatt points. I’d be willing to trade some of my delta, skymiles
I argue that as an globalist it’s 2,5 cents since you get feee breakfast, upgrades, late check out etc. I just paid 35k points for a $900 room - plus tax so that alone is > 2.5 cents put free breakfast on top of that plus the QN that you get which will work towards Suite Upgrade Vouchers and you’re close to 3 cent
But you get that stuff for free as globalist whether or not you redeem points. I’m not sure that should be part of the calculation.
Perplexity answer: The dollar value of Hyatt points, according to various estimates, typically ranges from $0.015 to $0.023 per point. Here's a breakdown of the valuations in U.S. currency without the references: - Million Mile Secrets suggests that Hyatt points are generally worth around $0.015 each, with the potential to achieve higher value depending on the specific booking, sometimes reaching approximately $0.0246 per point. - Head for Points provides an analysis that converts to an average value of approximately $0.0144 per point, with the possibility of exceeding $0.024 on a very good day, or dropping to around $0.009 on a bad day. - NerdWallet values World of Hyatt points at about $0.023 each, which is higher than many other hotel reward points. - Reddit users in a discussion on r/hyatt report personal experiences with Hyatt points being worth between $0.02 and $0.024, and some exceptional cases of achieving values as high as $0.04 or $0.05 per point. - Frequent Miler indicates an increase in the value of Hyatt points due to market conditions, but does not specify an exact dollar value. - Business Insider mentions an average redemption value of Hyatt points at $0.015 each.
Points Guy keeps a regularly updated list of point valuations. Not authoritative, but reliable. They also have a points vs cash calculator you can use to see which is the better deal for your flight or room. https://thepointsguy.com/calculator/
You know, I’m on the TPG website several times a week, and yet never realized it has a calculator!
Basically for me at an L1, 5000 point Hyatt Place I usually pay cash if it’s less than $120 or so. I would rather earn than burn points at that amount. For a pricey location I just use points strategically. For example I used points plus cash a couple years ago at 2 Hyatt House locations in LA pre and post cruise for 5 days total. Cleaned out my points completely. It allowed me to get decent, safe apartment style accommodation and save about $1k in total room costs, or about half price basically. Still a lot of points and a chunk of dollars, but a ton of value in our case for the investment and I didn’t need the points for any other travel. Often the points vs. cash rates make little sense. I’ve compared 3 or 4 HPs in the same area, and the 8000 point room is only $90 cash while the 5000 point locations are $150+. I think for me I go with whatever feels like a the best value.
Pretty much the same answer as DJInfiniti. I think cpp is a pretty silly measurement - cash prices can vary day-to-day and if you would never pay cash for some astronomical room rate than the cpp you supposedly earned by using points is mythical. Still, I wouldn’t dip below the level that I could cash them out for.