Starwood is offering to sell starpoints at $0.035 — 3.5 cents per point. If you buy 20k points, it drops to 2.6 cents per point (with a 25% discount)
Is this a good deal? Its really only a good deal if you need a little bit extra to make an award reservation.
It is difficult to get 3.5 cents or even 2.6 cents value when making a reservation.
For example, one of the hotels I booked recently in Peru and also a hotel in NYC.
- Tambo del Inka Resort & Spa, Valle Sagrado: On 11/20/13, the rate is $220 or 12k points or Cash and Points (6k plus $110).
- $220/12k = 1.8 cents per point using full points.
- $220 – $110 = $110 / 6k = same 1.8 cents per point with Cash & Points.
- Usually cash and points is a better value but here its not.
- If you don’t have the points, it is cheaper to pay cash than buy points at 3.5 cents per point.
- I’m not including taxes, which you won’t have to pay and makes the value a little better.
- The Westin New York Grand Central: On 11/28/13, the rate is $467 or 12k points.
- Adding about 15% tax, the total will be around $537. $527/12k = 4.4 cents per point.
- Here you are getting a good value and it would be worth buying points, but I rarely ever pay in full points because Starpoints are too valuable and you are better off booking cash and points. However, with the new increased rates starting this month, its become harder to find a good deal. I hope you made as many reservations as you could for the next year!
There you have it – most of the times its not worth it but in the New York Westin, it is worth it. But I would unlikely be paying for a $500+ hotel anyway.