Knowing the rough value of a point is an important step in your thinking. Why? Because it’ll help you plan how to earn and use your points systematically and rationally.

In this guide, we run through our methodology and our current estimates of the value of different points currencies. We suggest you read this in conjunction with our disclaimer – and keep in mind that our method is one of many ways to value points.

Ultimately, everyone will value points differently, so just think of ours as a guide rather than a gospel.

UPDATE 16 January 2024:

 

We’ve adjusted the underlying base redemption target rate by 8% to reflect inflation affecting taxes, fees and charges. We’ve also adjusted the weightings of some of our criteria behind the scenes to better reflect what the average frequent flyer is looking for in a loyalty program.

 

In terms of individual program movements, we have down-weighted Singapore Airlines KrisFlyer slightly due to the increase in transfer rates from 2:1 to 3:1 across American Express Membership Rewards and similar programs (although it did not result in a change of its valuation).

 

Conversely, we have up-weighted Qatar Airways Privilege Club since it’s a new 2:1 partner of American Express Membership Rewards and reward availability is decent. This has pushed its value from 1.3 to 1.6 cents per Avios.

Programs with increase in valuation ↑

As of 16 January 2024 (compared to June 2023)

All values are cents per point. Many programs saw a minor uplift due to the increase of the baseline redemption rate and inflation, rather than due to specific-program changes.

The main exception is Qatar Airways Privilege Club, which enjoyed a significant boost since becoming an American Express MR transfer partner.

  • Qantas: from 1.8c to 1.9c
  • Velocity: from 1.8c to 1.9c
  • Asia Miles: from 1.7c to 1.8c
  • Skywards: from 1.1c to 1.2c
  • Privilege Club: from 1.3c to 1.6c
  • AAdvantage: from 1.6c to 1.7c
  • Alaska: from 1.8c to 1.9c
  • Avianca: from 1.6c to 1.8c
  • IHG: from 0.7c to 0.9c
  • Hyatt: from 1.5c to 1.8c
  • Radisson: from 0.2c to 0.3c
  • Accor: from 2.9c to 3.0c

Programs with a decrease in valuation ↓

As of 16 January 2024 (compared to June 2023)

One hotel program saw a drop in value due to reward nights requiring more points relative to the cash rate.

  • Marriott Bonvoy: from 1.1c to 0.7c

Watch our video or continue reading below to learn more:


Our current points valuations

Remember, these valuations are based on our bespoke set of criteria and should be taken as a guide only. There can sometimes be differences in the value between two programs that allow transfers.

A 2:1 ratio doesn’t mean we’ll automatically value one program as worth double the other – we evaluate each program on its merits based on a variety of factors. Here’s what we take into consideration.

Airline programs

  • The ease of acquiring enough points in the program to achieve your targeted redemption.
  • The range of destinations you can travel to with those points, and the availability of award seats.
  • How strict the expiry conditions on points in the program are.
  • What level of out-of-pocket costs are required when redeeming points for flights.
  • How many points are required to redeem an award seat compared to other similar programs.

Hotel programs

  • The number of points required to redeem a standard room in a major Australian city.
  • The general availability of rooms that can be booked with points.
  • The range of hotels within the program where you can earn or redeem your points (including price point and locations).
  • How strict the expiry conditions on points in the program are.

Other programs

  • The quality of Australian airline transfer partners.
  • The quality of international airline transfer partners.
  • The rate at which points can be transferred from the program to airline and hotel partners.
  • The quality of hotel transfer partners.
  • How strict the expiry conditions on points in the program are.


Airline points valuation

Program NameValuations
(in Cents)
ProsCons
Qantas Frequent Flyer1.8
1.9
Easy to earn with huge range of domestic and international redemption destinations in theory (Oneworld and Emirates).Difficult to find premium cabin availability, both on QF and some major partners such as EK.
Velocity Frequent Flyer1.8
1.9
Easy to earn with decent range of domestic and international redemption destinations (Qatar Airways, Singapore Airlines and more).Network coverage patchy within Europe and to/from South America.
Singapore Airlines KrisFlyer1.9Good seat availability and range of international destinations with low/no carrier charges on redemption bookings.3 year hard expiry on points is uncompetitive. Partner awards are often very expensive.
Cathay Asia Miles1.7
1.8
Can redeem for oneworld flights including Qantas Domestic. Expiration policy changed from hard to soft expiry.Number of points has increased, removing the competitive edge against other oneworld airlines.
Emirates Skywards1.1
1.2
Has a large international network with ability to redeem or upgrade to one of the best First Class in the marketPoints requirements can be quite high, and the ability to directly earn Skywards miles in Australia is limited. New carrier charges make premium redemptions harder to justify.
Etihad Guest1.3Access to Etihad premium cabins and ability to book Virgin Australia flights with lower carrier charges than Velocity.Points requirements can be quite high, and the ability to directly earn Etihad Guest miles in Australia is limited.
British Airways Avios1.3Great value redemptions for short-haul Economy and Business destinations worldwide on oneworld carriers. Easier to access Avios via Qatar Airways. The ability to earn Avios directly in Australia is almost non-existent with no card partners (apart from going via Qatar Airways and Amex/Citi/Commbank).
Qatar Airways Privileges Club1.3
1.6
Great value long-haul redemptions on Qatar Airways. Some partner airlines can't be booked online easily (requires a manual form).
American Airlines AAdvantage1.6
1.7
Low carrier surcharges make this a useful program to use your Qantas points on for travel in North America.Ability to earn AA miles in Australia is almost non-existent with no card partners.
United MileagePlus1.6Good range of destinations via the Star Alliance and low carrier charges. Miles never expire.Ability to earn MileagePlus miles in Australia is almost non-existent with no card partners.
Delta Skymiles
1.4Miles never expire.Dynamic Pricing makes it hard to determine redemption cost.
Alaska Airlines Mileage Plan1.8
1.9
Frequent offers in market to buy discounted points that can be used on oneworld partner airlines including Qantas.Change to reward tables makes the program less competitive in some cases.
Avianca LifeMiles1.6
1.8
Get cheap Business and First redemptions on Star Alliance carriers.The ability to earn LifeMiles in Australia is almost non-existent with no card partners. Semi-strict expiry policy for non-elite members. Difficult to manage flight change/cancellations.

Hotel points valuation

ProgramValuation
(in cents)
ProsCons
Hilton Honors0.5Can be used across a wide range and standard of hotels in the Hilton Group with good availability for redemption.Dynamic pricing.
IHG Rewards0.7
0.9
Can be used across a wide range and standard of hotels in the IHG Group with good availability for redemptionDynamic pricing. 12 month points expiry for non-elite members.
Marriott Bonvoy1.1
0.7
Can be used across a wide range and standard of hotels in the Marriott Group with good availability for redemptionDevaluation has made the program less appealing in terms of number of points required for a redemption
World of Hyatt1.5
1.8
Fewer points required for a redemption than most programsMuch smaller range of hotels available than other similar programs and redemption availability can be limited.
Radisson Rewards0.2
0.3
Good transfer rate from Citibank Prestige card.Smaller range of hotels available than other similar programs and redemption availability can be limited. Points requirement extremely uncompetitive.
Accor Live Limitless2.9
3.0
Easily redeemed via a discount off your hotel charges at a rate of 2,000 points for every 40 Euros (~AUD$66)Points expire in 12 months if no account activity.

Other points valuation

ProgramValuation
(in cents)
ProsCons
American Express Membership Rewards (Ascent)1.0Highly flexible with no expiry on points and the ability to transfer to a large range of airline and hotel programs.Can't transfer points to Qantas Frequent Flyer program. Ability to earn points limited to places where Amex is accepted.
American Express Membership Rewards (Ascent Premium)1.2Highly flexible with no expiry on points and the ability to transfer to a large range of airline and hotel programs.Ability to earn points limited to places where Amex is accepted.
Amplify Rewards0.8Ability to transfer points to the Velocity and KrisFlyer programs.Transfer rates to airline partner programs is low.
ANZ Rewards0.8Flexibility to transfer to Velocity, KrisFlyer and Asia Miles.Transfer rates to airline partner programs are low, especially on international carriers.
NAB Rewards0.8Flexibility to transfer to Velocity, KrisFlyer, Asia Miles and NZ Airpoints.Transfer rates to airline partner programs are low, especially on international carriers.
Westpac Altitude Rewards0.5Flexibility to transfer to Velocity, KrisFlyer, Asia Miles, NZ Airpoints and Enrich.Transfer rates to airline partner programs are very low across all partners.
Flybuys0.8Easy to earn on everyday spend and can be transferred to Velocity points.
Everyday Rewards0.8Easy to earn on everyday spend and can be transferred to Qantas points.
Citi Rewards (Prestige)1.0Huge range of airline and hotel programs to convert points to including both major domestic carriers.Transfer rates to airline partner programs are low, especially on international carriers.
Citi Rewards (Premier)0.8Huge range of airline and hotel programs to convert points to.Transfer rates to airline partner programs are low, especially on international carriers.
CommBank Awards0.8Strong list of airline partners (plus 1 hotel partner) to transfer points to including both major domestic carriers.Transfer rates to airline partner programs are very low.

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Why consider the value of points?

All points are not created equal!

Many people believe that each loyalty program delivers the same level of value to its members. But this is far from true! Each program sets up its points differently. The number of points members earn when transacting with the program or its partners (e.g., purchasing a product or service) varies.

And not only that – the number of points required to redeem for a particular reward (e.g. a Business Class flight) differs as well. Simply put, the way each program is structured from an ‘earning’ and ‘redeeming’ perspective makes the value of a point in each program unique. Plus, these values can change over time.

Our valuation methodology

At Point Hacks, we base our valuations on the rate we feel consumers could afford to ‘buy’ points – knowing that they could safely redeem those points for something of higher value.

As we mentioned, we determine our valuations from the perspective of an Australian-based customer. We don’t delve into the complexities of our calculations in this guide. However, we do explore the factors that contribute to the overall points value for each type of program.

How to use points valuations

Ultimately, when you have an idea of the value of a point, it allows you to better assess whether you’re getting good value from earning or redeeming those points.

As a simple guide, you’re getting good value if:

 

  • You can earn points at a cost that is less than the value of the point you are acquiring; and

  • If you can redeem your points for a product or service that has a value higher than the value of the points you are using.

Advanced examples

Below, we dive into a number of examples. These will help you determine the cost of acquiring points or the value you’re getting from a points redemption.

Purchasing points directly from programs

Overall, we wouldn’t advise you to purchase points at the standard rate – unless perhaps you’re just shy of the points required for an award redemption.

However, a number of airlines offer promotional rates throughout the year. During these promotions, you can purchase a bunch of points at a much better value.

If the cost to buy the points is less than the value of the points, then it may make sense to buy those miles.

However, if the cost is more than other methods of purchasing the ticket, then it may be financially smarter to use cash or redeem your pre-existing points.

Note we say may make sense. That’s because at Point Hacks, we don’t recommend purchasing points speculatively if you don’t have a concrete plan to use them.

Even during great buy promotions, you run the risk of the points being devalued in future.

Using a credit card with a payment surcharge

Is your main reason for using a credit card to earn points on the transaction? Then take note of any additional surcharges incurred for using that card.

Most merchants don’t implement charges for using a credit card, but some do. In those instances, check that the surcharge you’re paying is below the valuation you place on the point you’re about to earn.

As an example, say your card earns you one point for every dollar spent. If you’re asked to pay a fee of 1.5% (i.e. 1.5 cents for every dollar), and you value a point in that program at 1.8 cents, then you’re acquiring the point at a rate (1.5 cents) less than our valuation (1.8 cents). So this represents good value.

On the other hand, say your credit card only earns you 0.5 point for every dollar spent. Then the cost of acquiring the point (3 cents per point) – calculated as 1.5 cents for every 0.5 point earned – is more than our valuation (1.8 cents). This, of course, represents poor value.

You should also be careful of points caps on your credit card. If your credit card has a points cap and you’ve exceeded that cap, then you won’t be earning any points on purchases. This is regardless of any fees you pay to the merchant to use your card.

Earning points from purchasing products or services

There are many instances where you can earn points for purchasing products or services from a provider that partners with a points program (e.g. energy plans, insurance products, etc).

Sometimes, the cost of these products are higher than their non-points earning equivalents. In these instances, you should assess the value you’re getting for the higher cost before you make a decision to purchase.

As an example, a standard product may cost $100 to purchase. But the exact same product may be $110 to purchase from the same provider if it includes points. In this instance, you may earn 500 points by selecting the points-earning option, but you have paid $10 extra to get those points.

This means you’ve acquired those points at a value of 2 cents each. If you value those points at 1.8 cents, then this would potentially represent poor value. You paid more for the points than you believe they are worth.

Say, however, the product provider was running a ‘double points promotion’ where you could earn 1,000 points for the same price. In this case, you would have acquired the points at a cost of 1 cent each, which would represent good value. This is well below the value you believe these points are worth.

Redeeming points for an airline seat

Most points redeemed by the Point Hacks audience are for airline seats – and in particular, premium cabin seats.

Given the cost of airline seats varies greatly depending on the route you’re travelling, seasonality, time of day, airline quality etc, it can be hard to determine the value of a point redemption. It gets even more complicated when you take into account the out-of-pocket costs that airlines can charge.

As an example, you may be looking to use 8,000 points + $36 in taxes to get a one-way Economy seat from Sydney to Brisbane.

If you were to purchase that seat with cash on a discounted fare, you may be able to get it for $150. Given you have to pay $36 to redeem your points for the seat, you are actually getting $114 in value ($150 less $36) for your 8,000 points, which equates to 1.425 cents per point.

If you value these points at 1.8 cents, then this redemption would represent poor value.

If, however, you were to redeem 68,400 points + $400 in out-of-pocket costs for a Business class one-way flight from Sydney to Hong Kong, your value would be very different.

You may be able to get that seat by paying $2,500 in cash. This means you’re getting $2,100 in value ($2,500 less $400) for your 68,400 points, at a value of 3.1 cents per point. This is well above the 1.8 cent valuation. In this example, you’re scoring good value.

Redeeming points for a product or service

Many points programs have an ‘online store’ which allows you to redeem your points for products such as appliances or vouchers.

The value of these redemptions is quite straightforward, as there is a clear cost for the item you are looking to acquire.

As an example, you may want to redeem 10,000 points for a $50 gift card. This equates to 0.5 cents per point in value. If you value those points at 1.8 cents each, then this redemption would be a poor use of your points.

Alternatively, you may want to obtain a toaster for 30,000 points. The toaster can be purchased for $200 using cash. This equates to 0.66 cents per dollar. Again, this represents poor value given the 1.8 cent valuation on those points.

In general, most redemptions from ‘online stores’ represent poor value. Using your points for a premium cabin flight redemption is almost always your best bet.

Summing up

Knowing the value of a point helps you make more informed decisions and extract greater value from them.

So if you’re looking for a place to start (or to point someone else to) to start earning more points from your day-to-day spending, check out our ‘earning points email course’ here →

This email course lays the groundwork for you to assess the different offers out there on a far more accurate basis. Your points may come from credit card bonuses, or be earned from ongoing spend. Ultimately, the points path you choose is up to you.

Disclaimer

Please be aware that the valuations on this Website have been prepared by Point Hacks using its own proprietary valuation system for the purpose of comparison between the value of rewards issued by different rewards programs. While we invest a great deal of time and energy into ensuring that our valuation processes are based on the most up to date and accurate information published by the rewards program, we do not warrant that there will not be a lag between the date that a rewards program issuer updates their rewards program and our valuation.

The information published on this Website does not constitute a recommendation from Point Hacks to acquire any particular product or service. The valuation of a loyalty scheme is only one of many factors (including fees, costs, features etc) to be taken into account in acquiring a product or service and it is your own responsibility to ensure that any products, services or information available through this Website meet your specific requirements.  Point Hacks expressly excludes any liability arising from any person acting on these valuations to the fullest extent permitted by law.  Where conditions or warranties are implied by law and cannot be excluded, our liability will be limited to the re-supply of information.

Point Hacks’s valuation system and the information published on this Website have not been reviewed or endorsed by any third party, including the issuer of any product or service described on this Website.  While Point Hacks aims to attribute a value to each loyalty scheme and reward for the purposes of comparison, we do not warrant that rewards earned through products or services available on this Website can be redeemed for cash, goods or services to the value ascribed to them by this valuation process.

Recent guide updates by Brandon Loo.

What’s a point worth? Here are our latest valuations was last modified: July 25th, 2024 by Daniel Sciberras