Not All Points Are Created Equal

Sometimes, when I start talking to people about travel points & miles, they will quickly respond and say, "Oh yeah! I already have Hilton Points, or Delta Miles, or I get cash back..." While that's a great starting point, there's literally an entire world out there filled with thousands of dollars in free travel with points if you understand this key principle...

Not all points are created equal!

This is the key principle that separates the casual amateurs from the skilled professionals in the Travel Hacking world. Knowing the different types of points and the values of those points is essential. This is a paradigm shifting reality that will often make or break your potential for dream travel.

The four types of points are: Transferable Points, Hotel Points, Airline Points, and Fixed-Value Points. Let me quickly walk through what each of them are, and how you can maximize value for each of them.

Transferable Points

These points offer the highest flexibility and often the highest value. Examples of transferable points would be: Chase Ultimate Rewards, American Express Membership Rewards, Citi Thank You Points, Capital One Points, and Bilt Rewards. Each of these point eco-systems have dozens of transfer partners that allow you to transfer these general points into dozens of airline or hotel point programs. Here's a breakdown of how each of these points are valued:

• Citi Thank You Rewards - 1.8¢ per point
• Capital One Points - 1.85¢ per point
• American Express Membership Rewards - 2.0¢ per point
• Bilt Rewards - 2.05¢ per point
• Chase Ultimate Rewards - 2.05¢ per point

These are the most valuable and should always be guarded and redeemed for maximum value through the various transfer partners.

Hotel Points

Hotel points have a significant value difference between the low and high value points. Here's a breakdown of how each of these points are valued:

• IHG Rewards - 0.5¢ per point
• Choice Privileges - 0.6¢ per point
• Hilton Honors - 0.6¢ per point
• Marriott Bonvoy - 0.84¢ per point
• Wyndham Rewards - 1.1¢ per point 
• World of Hyatt - 1.7¢ per point

Brands like IHG and Hilton will often try to entice you with hundreds of thousands of points in their Credit Card Welcome Bonus, but by learning that their points are only valued at 0.5¢ each, you quickly learn that it cost 40,000-60,000 points to book standard rooms with their brands. In contrast, the elite value that Hyatt provides through their rewards program is incredible! Rather than spending 60,000 Hilton Points for a standard hotel room, you can book luxury all-inclusive resorts with Hyatt for as low as 29,000 points per night. While Hyatt points are typically valued at 1.7¢ per point, you can even find redemptions as high as 5¢ per point!

Airline Points

Airline points are similar in value, but vary significantly on cost. Here's a breakdown of how each of these points are valued:

• Delta Airlines - 1.2¢ per point
• Southwest Airlines - 1.4¢ per point
• Jet Blue - 1.4¢ per point
• United Airlines - 1.45¢ per point
• American Airlines - 1.55¢ per point

Delta flights are often most expensive and their points are the least valuable. In contrast, Southwest Airlines is similar in point value, but their flights are often the most inexpensive. United and Jet Blue are solid values, and American consistently ranks the highest in point value and their flights are very cost effective. As an example, if I wanted to fly from Philadelphia, Pennsylvania to Denver, Colorado for a ski trip, it would cost me 69,500 points with Delta, but it would only cost me 36.700 Southwest Points for the exact same flight.

Fixed-Value Points

These points never fluctuate in value and can be used for a variety of travel needs. For instance, Chase Ultimate Rewards can be used as fixed-value points (1.25¢ per point) in the Chase Travel Portal and be used to book unique hotels like historic mansions, pay for activities like helicopter tours, cover the cost of rental cars, book cruises, and more. Ultimately, you should never redeem any points for less than 1¢ per point value!

Stacking Them All Up 

Knowing the difference between the different types of points and the different values of the points can have a significant impact on what type of points you earn, which travel credit cards you pursue, and what type of destinations you can travel to. When you rank the different types of points, Transferable Points are always best because of their value and flexibility. Hotel Points are next because of their high value, Airline Points are third, and Fixed-Value Points are last because of their lower value and limited use.

This is just a glimpse into a much larger picture, and if you take my Launch into Travel Hacking Course, I'll teach you how to earn the best points, redeeming them for maximum value, tools for finding great redemptions, and a points calculator to ensure that you're always getting the best value!