Buying airline miles and hotel points may seem like an easy way to boost your miles and points stash, but in most cases, it’s not the best financial decision. But, there are a few strategic situations where purchasing points can provide excellent value. Here’s a breakdown of when it makes sense to buy miles and points—and when it doesn’t.
When You Should NOT Buy Points
Most of the time, purchasing airline miles is not a smart move. Airlines and hotels frequently devalue their rewards programs, meaning the points you buy today may be worth less tomorrow. Here are some common scenarios where buying points doesn’t make sense:
No Specific Redemption Plan: Buying points without an upcoming trip in mind is risky. Airline and hotel programs can change their redemption rates at any time, potentially leaving you with devalued points.
High Taxes and Fees: Some premium redemptions come with hefty surcharges. For example, Virgin Atlantic upper-class redemptions often require over $1,000 in fees, which may eliminate any real savings compared to paying cash for a different airline’s business class.
Alternative Cash Options: Even if a redemption looks good on paper, ask yourself: Would I actually pay this much for the experience in cash? If a business class flight costs $10,000 but has $2,000 in taxes, a $3,000 cash alternative may be a better deal.
When It DOES Make Sense to Buy Points
While airline miles are rarely worth purchasing, hotel points can sometimes offer great value—especially when bought during promotions. Here’s when it makes sense to consider buying points:
1. When There’s a Points Sale
Hotels frequently run bonus sales on points purchases, allowing travelers to buy points at a discount. A recent Hilton sale offered a 100% bonus, allowing people to buy points for 0.5 cents each. If the redemption value exceeds the purchase price, buying points can be a great move.
Example:
Brendan purchased 320,000 Hilton points for $1,600 at 0.5 cents per point.
He redeemed for $3,000+ worth of hotel stays, saving money while preserving more valuable transferable points like American Express Membership Rewards.
2. To Top Off an Award Booking
Some programs require a full points redemption, meaning you can’t book if you’re just a few thousand points short. Buying a small number of points can be an easy way to finalize an award trip without having to transfer valuable flexible points.
3. Meeting a Credit Card Minimum Spend
If you’re close to hitting a welcome offer on a travel credit card, purchasing a small number of points could help you meet the minimum spend without unnecessary purchases.
The Opportunity Cost of Buying Points
One often-overlooked factor is the lost opportunity to earn points from cash bookings. If you pay cash for a hotel stay, you often earn bonus points through elite status, credit card spending multipliers, and promotional offers. In one example, paying $3,000 for Hilton stays would have earned 126,000 Hilton points—a major factor to consider before buying points outright.
Buying Points (with Virgin Atlantic)
Virgin Atlantic recently offered a 70% bonus on purchased points. On the surface, paying $3,147 for 212,500 points seemed like a great deal, given that Virgin redemptions can exceed 10-20 cents per point. However, high taxes and fees on premium Virgin Atlantic redemptions meant that some alternative airlines offered better business class deals for similar cash prices.
The takeaway? Buying points—even at a discount—does not always guarantee a good deal. Careful calculations and comparisons with cash fares are essential.
Final Thoughts
While buying points can sometimes unlock travel savings, it’s rarely a good deal for airlines and only worth it for hotels during high-value sales. Instead of purchasing points, you are often better off earning transferable credit card rewards that provide more flexibility.
Want to learn more about how to earn valuable points without spending extra money? Check out our top travel credit cards page for the best welcome offers and strategies!
