Buying Hotel Points: A Guide to Saving Money on Luxury Vacations

My goal with points and miles is to save money and experience vacations that I would otherwise never be able to afford.  In some situations, buying points to save money can make sense.  Confused yet? 

Why Buy Hotel Points?

Purchase points generally make sense when the value gained through redemption exceeds the cost. If you have the goal of staying at an aspirational property and haven’t had the time or desire to earn points, buying points could be the smart solution.

Using Points for A Stay At Waldorf Astoria Los Cabos Pedregal

I love Cabo San Lucas and the Waldorf Astoria Los Cabos Pedregal, a popular hotel for aspirational hotel stays.  I would love to go for a weekend, but I only have 20k Hilton points. The lowest points per night option is 140k, and there is a weekend in March with availability.

Unfortunately, because I only have 20k Hilton points, the weekend would cost an additional $4,655, so I am not booking a room unless I can find many more points.   

Option 1: Transfer Amex Membership Rewards to Hilton

Amex Membership Reward points can be transferred to Hilton at a ratio of 1-to-2.  I could transfer 130k of my Membership Reward points to Hilton.

The value per point of the transfer would be high at 3.6 cents per point ($4,655/130,000 points = 3.6 cents per point), but I know of more beneficial ways to use my Membership Rewards.  Using 130k points for a 2-night hotel stay does not fit within my rules for how I like to use points.

Option 2: Buy Hilton Points

Hotel and Airline programs offer the ability to buy points.  This is an incredible option when you are using points for outsized value.

Let’s look at my weekend in Cabo to see if buying points makes sense.

I have 20k points and need 280k for the 2 nights.  Currently, I can buy the Hilton points I need for $1300.  Hilton often has sales; you can pick up points for even less!

Instead of $4655 for the 2 nights, I would pay $1300.  This is still more than I would want to spend on a 2-night stay, but the goal of this scenario was to show you why you need to consider buying points. 

Limitations for Buying Hilton Points

You cannot buy an unlimited amount of Hilton Points.  Fortunately, Hilton does allow people to pool points with up to 10 people.  If you need more points than the maximum number allowed, someone else can purchase them, and then you pool the points to your account.

Anyone Can Buy Hotel Points

This is just one example of when buying points is a fabulous option.  This trick to buy points is not just for people playing the award travel game. Anyone can sign up for a loyalty account and then buy points.  Remember that some programs, including Hilton, have a waiting period after creating a loyalty account before you are allowed to purchase points.  This is another reason I recommend creating accounts with all major programs, even if you haven’t used the program before. Make sure to stay organized; it would suck to lose your account information and hard-earned points.

Speculatively Buying Hilton Points

It is best practice to buy points only when you have a specific trip for which you plan to use them.  If you speculatively buy points, you must remember that points can devalue at any time, meaning the points needed for hotels can go up at any time.  Less than one month ago, the Waldorf Cabo only required 120k points per night, and now you need at least 140k.  

Final Thought About Buying Hotel Points

If you buy points, use a credit card to maximize your points.  Typically, a co-branded card from where you purchase points will get you the biggest earning for this type of purchase. I would use my Hilton Honors Aspire Card if I were buying Hilton points.

Buying points is another way to stretch your vacation budget and have even more amazing vacations. The power of points and miles is awesome!

Thanks for reading, friends. Happy travels!