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:
- Hyatt Gold Passport adds a Cash & Points feature for rewards similar to Starwood Preferred Guest, Hilton HHonors and IHG Priority Club.
- 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.
- 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.