By now, you probably know all about the power of airline frequent flyer points. But with flying comes time to spend at the destination. When your feet are on the ground, should you chase hotel points? For that matter, is it even worth collecting hotel points?
No doubt, it’s worth collecting points on hotel stays. But when it comes to hotel points, there can sometimes be a sacrifice. Earning hotel points usually means booking directly with that hotel chain – meaning there’s an opportunity cost. By booking directly with the hotel, you’re not using services like Qantas Hotels to top up your frequent flyer account on those spends.
So, let’s reframe the question. Is it worth collecting hotel points at the expense of frequent flyer points? In our view, it depends. Here’s where it can make sense – and equally, where it doesn’t.
ANZ Rewards Velocity Platinum
- Sign-up Bonus:
- Up to 80,000 bonus Velocity Points
- Rewards Earn Rate:
- Earn 1.5 ANZ Reward Points per $1 spent on eligible purchases up to $2,000 per statement period, then 0.5 Reward Points per $1 you spend on eligible purchases above $2,000 per statement period. Keep on your auto redemption to transfer your ANZ Reward Points to Velocity Points. 2 Rewards Points for 1 Velocity Point.
- Annual Fee:
- $149 p.a.
- Get up to 80,000 bonus Velocity Points + $50 back with the ANZ Rewards Platinum Credit Card. Earn 60,000 bonus Velocity Points and $50 back when you spend $3,500 on eligible purchases the first 3 months from approval, plus 20,000 bonus Velocity Points when you keep the card for over 15 months from activation.
When it’s worth collecting hotel points
I’d suggest there are five scenarios where it pays to collect hotel points.
- When you can earn hotel points and airline points – it’s not an either/or choice.
- For regular business travellers who plan to also notch up elite nights or stays towards status.
- For leisure travellers who have hotel status, including via a credit card.
- Where booking direct (and by extension, earning hotel points) is the most cost-effective path.
- When your ideal holiday is a staycation in your home city, or a road trip.
Let’s unpack that a little bit. Some programs, like Accor Live Limitless (ALL), allow you to earn hotel rewards and airline rewards at the same time. Choosing to earn both doesn’t mean earning fewer points in a different way, either. It’s a genuine double dip. For instance, link your ALL account to Qantas and receive three Qantas Points per $1 spent on hotels in Asia Pacific. That’s the same number of points that you’d get by booking with Qantas Hotels. But when you book through Accor, you also get reward points with ALL. You’re getting closer to your next free flight, and next free hotel stay, at the same time.
Separately, most hotel programs only recognise and reward status when you book direct. That applies not only to earning the creds needed to gain or retain a tier, but to the elite benefits as well. So if you want to enjoy the perks of your level – free daily breakfast, perhaps – you’ll usually need to book direct.
Some chains also offer a “member’s rate”. This is usually cheaper than the rates advertised on all other channels – another incentive to book direct, all while collecting hotel points. Naturally too, if your dream trip doesn’t involve flying, earning points with companies on the ground, like hotel chains, is an easy fit.
When it’s not worth collecting hotel points
When points are on offer, our default approach is to grab them all! But there can be times where it doesn’t really make sense to collect hotel points. For instance, when:
- You’re only an occasional traveller, which makes it hard to earn many points in a hotel account.
- Where your travel habits would see points expiring before you can actually use them.
- When you normally stay with one chain (and book direct), but need to make an ad-hoc booking at a chain you don’t frequent.
- When the hotel chain still recognises third-party bookings, and those third-party points are worth more.
- For the most part, when you’re earning rewards through credit card spend.
Let’s reflect on the above. You might be taking 10 trips a year – not an insignificant amount of travel. But if you’ll be staying at a Hyatt on one trip, then a Hilton, then a Marriott, then a Shangri-La, etc, you’ll struggle to earn anything meaningful. You’d have a handful of points here, a little stash of points there… but not enough anywhere to actually book something. Consolidation, such as booking through a platform for airline points, could be a smart play.
The same is true if those small pockets of points would largely go unused. Why earn points that are only going to vaporise? It defeats the point, if you’ll pardon the pun. But you might also be a savvy traveller, and understand the power of points. You might even find that the frequent flyer points you could earn might be more than the hotel points a chain might give you. Let’s look at an example.
Maximising your rewards on Radisson stays
Radisson is one of very few hotel chains to recognise stays booked through any channel. That means you could book a Radisson hotel through Qantas Hotels, but still qualify for ‘nights’ and ‘stays’ with Radisson Rewards. Okay, you won’t also earn Radisson Rewards points – there has to be some trade-off overall. But when you can earn at least three Qantas Points per $1 spent on accommodation, and still live the elite life, what’s not to like?
I put this to the test on a recent visit to Norway. A Radisson property sat in the best location for my needs. Personally, I don’t much fancy Radisson Rewards points as a currency, given the limited value you can gain when redeeming them. Yet, I have Radisson Rewards ‘VIP’ status, so I want to enjoy its benefits.
Despite booking through Qantas Hotels, I enjoyed all my usual perks at the hotel. I even earned those important nights and stays with Radisson Rewards, to help keep my tier. I simply put my Radisson Rewards number as a comment when making the booking, and the property linked things up. It was seamless.
So, when crafting your own travel strategy, don’t just default to ‘airline miles’ or to collecting ‘hotel points’. Consider your needs, think about your travel patterns – and for that matter, have those thoughts each and every time you book. After all, if you’re going to be spending that money anyway, you might as well maximise your rewards. Now it’s over to you to find your best fit!
What's your approach to collecting points on hotels?
Featured image courtesy of Andrea Piacquadio/Pexels.
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Adding to this regarding Hotel Status
Points generally do not delivery status very well – need a lot of stays to get the points
(points are more a cost and hotel spend benefit). However most Hotel loyalty programs carry both points and Nights – so you get your status whichever arrives first.
It is worth noting that some chains offer an easier way to status by counting stays…
eg. Hilton Honours 4 stays = Silver versus 10 nights or 25,000 points
Gold = 20 stays versus 40 nights.
eg. GHA Discovery require 2 Stays for Gold and 2 Stays at different brands for Platinum.
Wyndham/Ramada allow carryover and only 5 nights
Accor Limitless (ALL) allow cash conversion of points towards any stay. So you don’t need to actually have enough points for a full stay (ie. can use points to get a small discount).