You can now redeem Nectar points for hotel stays, but is it a good deal?

Jun 22, 2021

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There’s now another way to use your Sainsbury’s Nectar points to book your next hotel stay, but should you redeem your points in this way?

Nectar points became a lot more interesting and valuable earlier this year following its partnership with Avios, the points currency of British Airways. You can transfer 400 Nectar points to become 250 Avios. Alternatively, you can transfer 250 Avios to become 400 Nectar points. Essentially, with this new transfer option, you are “buying” Avios for a cost of 0.8p apiece, which isn’t necessarily a bad deal.

This 0.8p valuation figure is because you would otherwise be receiving a £2 discount on your Sainsbury’s shopping by using 400 Nectar points, so you are foregoing the discount in order to gain the 250 Avios instead.

Related: When does it make sense to transfer Avios to Nectar?

You can already earn Nectar points for your hotel stay by choosing “Pay Cash and Collect Nectar Points” when you search in the Nectar Hotels platform.

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(Image courtesy of Nectar)

As you will see from an example here, you would earn 3,000 Nectar points for booking the DoubleTree By Hilton Edinburgh City Centre through the platform.

(Image courtesy of Nectar)

Using the 0.8p valuation figure for Nectar points, the 3,000 Nectar points would be worth £24, or much less than a 10% discount. Given the huge amount of cashback and hotel programme promotions floating around right now, this isn’t a great offer. I recently earned 58 Hilton points per £1 spent, which is significantly more than the Nectar offer here.

Also, don’t forget the discount where you can obtain a 14% discount with every stay.

Let’s look instead at the new redemption offer and see if that’s a better deal.

For the same three nights at the same hotel, by choosing “Spend Nectar Points” when searching, these are the same results.

(Image courtesy of Nectar)

You can spend 63,100 Nectar points to save £369. This would give your Nectar points a value of only 0.58p per point. This is lower than the 0.8p value you can obtain from redeeming at Sainsbury’s, so not a great redemption deal.

At the other end of the scale, you could spend just 6,300 Nectar points to save £26. This is an even worse value, giving your Nectar points a value of just 0.41p each, around half of the value through Nectar.

Related: Earn up to 30 Nectar points per £1 spent by linking your credit or debit card

Bottom line

This isn’t the best way to earn or redeem your Nectar points, especially as there are so many other promotions this summer as hotel groups try and fill up all those empty rooms with fewer travellers than pre-pandemic.

If you never shop at Sainsbury’s, but you’re still earning Nectar points in other ways, such as through other partners, you can still get some value from redeeming your Nectar points for hotel stays through the Nectar Hotels platform.

Featured photo courtesy of Hilton.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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