Hyatt Gold Passport buy up to 40,000 points option

Hyatt Gold Passport has set a price value on its points in 2011 and it is a high price. Hyatt added the option to buy or gift up to 40,000 points in a calendar year through Points.com at the rate of $24 per 1,000 points. Prior to 2011, points could only be purchased when needing points for an immediate reward redemption and I think it was limited to 10% of the reward cost.

In April I stated on Loyalty Traveler blog the $24 price was a fair market value.

While the price is probably fair, I can’t really say it is a good value to purchase points at $24/1,000 points unless you have an immediate redemption in mind where the redemption value will exceed $24/1,000 points.

Here is a Hyatt Gold Passport hotel reward category chart and buy points equivalent room rate including tax as a guide.

• Category 1 hotels = 5,000 points = $120
• Category 2 hotels = 8,000 points – $192
• Category 3 hotels = 12,000 points = $288
• Category 4 hotels = 15,000 points = $360
• Category 5 hotels = 18,000 points = $432
• Category 6 hotels = 22,000 points = $528

When the room rate + tax exceeds the rate shown above for the hotel reward category, then buying points might be a good option. Keep in mind though that a reward night on points does not earn points and miles or promotion credit.

When I look at this chart I only see real value in Category 1 hotels where there is a reasonable probability that the room rates at a Category 1 Hyatt Place may exceed $120 per night making the ability to buy 5,000 points for $120 a potential savings. I have stayed at category 2 hotels on reward nights when the rate was over $200 per night after tax.

Actually finding hotels in category 3 to 6 where the rate is higher than the cost to buy points is not a situation I think you will find too frequently.

The ability to buy up to 40,000 points per year is primarily an opportunity for buying a few thousand points to reach a reward level when you are short.

I see three situations where buying Hyatt Gold Passport points at $24 per 1,000 points could be a good value:

1. Hyatt Gold Passport adds a Cash & Points feature for rewards similar to Starwood Preferred Guest, Hilton HHonors and IHG Priority Club.
2. Hyatt Gold Passport adds an extended stay discount like Marriott Rewards and SPG with 5th night free and Hilton HHonors with extended stay VIP rewards or American Express AXON rewards.
3. Hyatt Gold Passport runs a promotion for buying points with additional bonus points (similar to airlines 50% bonus miles purchases or Choice Privileges recent 10% bonus) or discounts the rate to buy points like SPG’s periodic 20% discount from $35/1,000 points to $28/1,000 points.

For this Loyalty Traveler, the option to buy points is something I will keep in mind when checking category 1 hotel rates and the Hyatt Gold Passport hotel stay promotions are not so lucrative.