Get 30% extra Avios on hotel point transfers, but is it worth it?
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Transferring points between programmes can help you achieve your next redemption, however, doing so is much more lucrative when programmes offer bonuses on these transactions.
The following are the participating hotel programmes, transfer rates and minimum transfer amounts:
|Hotel Programme||Transfer rate||Minimum transfer amount|
|IHG Rewards Club||5:1||10,000|
- You must convert your points between 10 November and 9 December 2020;
- Bonus Avios can take 4-6 weeks to appear in your Executive Club account;
- You need to log in to your hotel loyalty scheme account and transfer points to your Executive Club account.
Is it worth it?
As with all uses of miles and points, it’s important to work out the value you get when using those points. For the two programmes that this bonus applies to, I’ve applied TPG U.K.’s current valuations against the transfer ratio and bonus rate to work out the amount value of the Avios you end up with after the transfer. I used these results to work out if the transfer is worth it.
In the chart below, I’ve used an example transfer amount of 10,000 hotel points.
|Transfer Partner||Value of 10,000 points||Transfer Ratio + Bonus||Amount and Value of Avios received (1.1p valuation)||Loss of value|
|IHG Rewards||£40||5:1 + 30%||2,600 / £28.60||29%|
|Radisson Rewards||£30||10:1 + 30%||1,300 / £14.30||52%|
Looking at the table above, it becomes very obvious that the value of Avios you end up with does not come close to the original value of the hotel points.
The Radisson transfer looks particularly bad, with a 52% loss, meaning more than half of the value of your points disappears.
When might it be worth transferring points?
You may have small balances of hotel points to clear. If a transfer helps you achieve a redemption with Avios, subject to the minimum transfer amounts above, it could be worth pooling your points in a place like the Executive Club where you are more likely to use them. After all, unused or expired points have no value whatsoever, and you can throw my calculations out the window.
Ultimately, you should be guided not only by how to extract the maximum value from your points, but also by common sense. If the value doesn’t quite work out, but you have the chance of topping up your Avios balance for your next desired redemption, then this bonus might just help you get there a little quicker. But for most, leaving larger stashes of hotel points where they already are probably makes the most sense.
Emily McNutt contributed to this story.
Featured photo by Nicky Kelvin/The Points Guy.
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