Updated: October 25, 2024
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The world of travel rewards can be confusing and overwhelming. Each rewards program usually comes with its own rewards currency, value-per-point/mile, transfer partners and redemption policies. As such, it can take some work to determine which rewards programs offer you the best value and will suit your lifestyle and spending habits. To make this process a little easier, MoneyGeek broke down how much airline miles and points are worth in a specific program.
The value of airline miles and hotel points can vary based on the rewards program and your booking details.
Co-branded credit cards are ideal for individuals who favor a specific airline or hotel chain.
You may have more flexibility in redeeming miles or points if you use a general travel credit card.
Airline miles are the currency used by airlines to reward frequent fliers. You can typically earn airline miles by flying with a specific airline, using that airline’s shopping portal or participating in the airline’s dining program. Alternatively, you can get a credit card that rewards you with miles when you spend. Once you’ve racked up enough airline miles, you can redeem them for discounted or free flights.
You can calculate the value of airline miles by subtracting the taxes paid from the cash price of your ticket and dividing the difference by the number of miles required to book a flight. So, if the flight costs $398.20 or 30,000 miles plus $11.20 in taxes and fees, the value would be roughly 1.3 cents per mile.
To maximize the airline miles you earn, make sure to get the right credit card based on your traveler profile. A co-branded credit card is preferable if you frequently travel with one airline, whereas a general travel card is ideal if you don’t have a preferred airline. You can also maximize your miles by taking advantage of welcome bonuses offered by airlines or travel cards.
Airlines Rewards Program | Value per Mile/Point | Why We Geek Out |
|---|---|---|
1.4 cents to 1.8 cents per mile | Can fly to approximately 1,100 destinations worldwide. | |
1.1 cents to 1.2 cents per mile | Miles are unlimited and have no expiration date. | |
1.3 cents to 1.4 cents per mile per mile | Allows you to pool points with family members and friends. | |
1.4 cents per point | Companion Pass allows a guest to fly with you for almost free. | |
1.2 cents to 1.3 cents per mile | Member of Star Alliance, the first global aviation alliance. |
In general, you're not usually able to transfer airline miles between rewards programs. You may, however, use your miles to book a flight with an airline partner. For instance, American Airlines allows you to earn and redeem miles with its partner airlines, including Alaska Airlines, British Airways, Japan Airlines and more. If you're using a travel credit card like Citi Premier, you may be allowed to convert points to miles by transferring them to a frequent flyer program.
Hotel points are a hotel’s currency that you can typically spend within the hotel chain. In general, you accrue hotel points based on how much you spend at a hotel. But you also stand to earn hotel points when you use hotel shopping portals or participate in hotel dining programs. These points can be redeemed for discounted rooms or award stays.
To calculate the value of hotel points, you need to divide the actual price of the booking by the number of points needed to book a room. That means if you need 30,000 points to book a $250 room, the value of each point is 0.83 cents.
Like with airline miles, there are various ways to maximize your hotel points. You may get a co-branded hotel card if you favor one hotel chain or a general travel card if you want to earn rewards on hotel purchases regardless of where you stay. Alternatively, you can maximize your hotel points by keeping an eye out for various hotel offers.
Hotel Rewards Program | Value per Point | Why We Geek Out |
|---|---|---|
1.7 cents to 2.8 cents per point | Offers greater redemption value at high-end hotels. | |
0.5 cents to 0.6 cents per point | No resort fee when you use your points on reward stays. | |
0.5 cents to 0.7 cents per point | Its rewards program is suited for both budget-conscious | |
0.7 cents to 0.9 cents per point | Has over 8,000 properties spread across 30 brands. |
Some hotel loyalty programs allow you to convert hotel points to airline miles by transferring them to frequent flyer programs. These include the Marriott Bonvoy and World of Hyatt programs. That said, the number of airline miles you receive for your hotel points will depend on the hotel and its airline partner.
You can redeem a free night at a Hilton property for a minimum of 5,000 points. However, the actual number of points required may increase depending on various factors, such as the type of property you choose and your desired travel dates.
Credit card companies often provide incentives or benefits to entice you to sign up with them. For instance, a rewards credit card can help you earn points on eligible purchases that you may convert to hotel points, airline miles or travel credits.
It’s worth noting that converting your points to miles by transferring them to a frequent flyer program can cause their value to change. That’s why it’s important to check the transfer ratio before doing this. Keep in mind that once you convert your points to miles, you usually can’t convert them back.
Credit Card Rewards Program | Approximate Value per Point | Why We Geek Out |
|---|---|---|
0.5 cents per point | Cardholders can transfer their Membership Rewards points to | |
1 cent per point | To boost your card’s reward-earning potential even more, you | |
1.5 cents per mile | Depending on the Capital One credit card you own, you can earn | |
2 cents per point | Chase Ultimate Rewards transfer partners include domestic and | |
1 cent per point | Citi's transfer partners cover all three major airline alliances | |
1 cent per mile | Through its Cashback Match program, Discover automatically | |
1 cent per point | The rewards you earn with your Wells Fargo credit card can be |
Travel credit cards are ideal for individuals who want to earn points and redeem them for travel. These cards usually offer more freedom since they are not affiliated with a particular airline or hotel. However, they often come with annual fees.
Credit Card Name | Points Earned per Dollar Spent |
|---|---|
1–5 points per dollar | |
1.5 points per dollar | |
2 miles per dollar | |
1–3 points per dollar | |
1–3 points per dollar |
When you use a co-branded hotel card, you stand to earn hotel points in a specific loyalty program when you make purchases with that credit card. Some cards can grant you elite hotel status, while others may offer free account anniversary nights.
Credit Card Name | Points Earned per Dollar Spent |
|---|---|
3–7 points per dollar | |
3–12 points per dollar | |
3–12 points per dollar | |
1–2 points per dollar | |
1–9 points per dollar | |
1–15 points per dollar | |
1–25 points per dollar | |
2–6 points per dollar | |
1–3 points per dollar | |
2–6 points per dollar | |
2–6 points per dollar |
Co-branded airline credit cards work with a specific airline or airline partner to reward you for everyday purchases. In most cases, you earn airline miles for flights and seat upgrades. Additionally, these cards often come with benefits such as free checked bags or early boarding.
Credit Card Name | Points Earned per Dollar Spend |
|---|---|
1–2 miles per dollar | |
1–2 miles per dollar | |
1–2 miles per dollar | |
American Airlines AAdvantage® MileUp® Card | 1–2 miles per dollar |
1–3 miles per dollar | |
1–2 miles per dollar | |
1–2 miles per dollar | |
1–2 miles per dollar | |
1–3 points per dollar | |
Aer Lingus Visa Signature® | 1–5 Avios per dollar |
1–2 miles per dollar | |
1–3 miles per dollar | |
1–3 miles per dollar | |
1–3 miles per dollar | |
1–3 miles per dollar | |
1–2 miles per dollar | |
1–2 miles per dollar |
When you earn rewards with a credit card, it’s wise to spend your points as you would your cash — strategically. Loyalty programs want you to earn points and redeem them as quickly as possible. Redemptions such as merchandise and magazine subscriptions are likely not to earn you a solid value. So be sure to save your points as you would cash, and redeem your rewards for high-value travel. — Brett Holzhauer, contributing expert for MoneyGeek
Because airlines, hotels and credit card issuers don’t often provide their own point and mile valuations, MoneyGeek’s valuations can help you estimate how much each program’s rewards are worth. In addition, they can give you a baseline to decide whether you are getting a good deal for your redemption. That can, in turn, help you understand how and when to redeem your points or miles to get the most from your chosen loyalty program.
To determine our valuations, MoneyGeek gathered and analyzed data on various flights and hotel stays. Afterward, we divided the cost of each booking by its cost in rewards to determine the cash value of a mile/point for a given flight or hotel stay. Note that these valuations may change or fluctuate depending on the airlines’ or hotels’ policies.
It’s best to confirm with your airline, hotel or credit card whether their rewards expire. Some rewards programs, like Delta SkyMiles, don’t expire, so you don’t have to worry about losing your points. However, other programs have an expiration date, meaning you stand to lose your hard-earned points if you don’t use them within an allotted time. For instance, Citi ThankYou points earned through the Citi Premier card expire after two years.
Yes, you can. Some hotel loyalty programs allow you to convert hotel points to airline miles by transferring them to a frequent flyer account. Examples include Marriott Bonvoy and World of Hyatt programs. Make sure to check the transfer ratio before doing it to see if transferring your points is a wise move.
No, you usually can’t transfer hotel points from one hotel loyalty program to another. If you want more freedom with your hotel loyalty program, you may want to consider getting a general travel credit card.
You usually can’t convert your airline miles to cash if you’re using a popular U.S.-based airline loyalty program like American Airlines AAdvantage, Delta SkyMiles, Southwest Rapid Rewards and United MileagePlus.
Generally, you can’t transfer miles between frequent flyer programs. But you can use your airline miles to book a flight with a partner airline.
Depending on the credit card you use, you can convert your credit card points to hotel points or airline miles. That said, the value may increase or decrease when you convert your points.
This will typically depend on your lifestyle and spending habits. Frequent flyer miles may be worth it if you are loyal to a specific airline or often travel because you can use them to book flights, get seat upgrades and more. But before you sign up for a frequent flyer program, it’s important to understand the value of its airline miles to determine how far it can take you.
Similarly, hotel rewards points may come in handy if you prefer a certain hotel chain or frequently travel. As always, it’s best to have an idea of a hotel loyalty program’s value-per-point to determine if you’ll get great value for your redemption.
About Doug Milnes, CFA
Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.
Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.
