Using points and miles to pay for flights and hotels is a great way to save money. Here are some point and mile promotions for your consideration, with great opportunities for savings!
The Points Guy ~ ” The travel industry was hit hard by the coronavirus outbreak, but fortunately, the future of travel is starting to look brighter with vaccines rolling out and borders reopening.
While the recovery is ongoing, airlines and hotel groups are still scrambling to find new or increased income streams to secure cash fast. One of these ways is selling airline miles and hotel points at a discount or with a bonus. This gives the seller an immediate cash injection, as travelers are essentially prepaying for future travel at a potential discount.
There are a couple of things to consider before taking advantage of these sales. The first is that buying points and miles only makes sense for certain travelers. It’s generally a much better deal to earn points and miles for “free” through welcome bonuses on top travel rewards credit cards.
However, buying points and miles during good promotions can make sense for those who have tapped out their credit card options and can get high value from their points and miles. That said, we only recommend buying points or miles when you have an immediate plan to use them. Otherwise, you’re left open to unexpected devaluations.
Alaska Airlines Mileage Plan
Current promotion: Up to a 50% bonus.
Purchase rate: As low as 1.97 cents per mile.
TPG valuation: 1.8 cents per mile.
Ending date: March 16.
Alaska Airlines is selling miles with a 50% bonus when you purchase at least 30,000 miles. This drops the price to 1.97 cents per mile, which isn’t the best deal we’ve seen for Alaska miles. That said, it may be worthwhile for purchasing partner award tickets at a discount. For example, you could purchase the 60,000 miles needed for a Japan Airlines business-class ticket to Asia for $1,182.50, which is often cheaper than paying cash.
Verdict: This is a good deal for buying high-value partner flights at a discount.
Southwest Rapid Rewards
Current promotion: Up to a 40% discount.
Purchase rate: As low as 1.65 cents per point.
TPG valuation: 1.5 cents per point.
Ending date: April 5.Southwest Rapid Rewards has again put its points on sale. The maximum discount is 40% off when you buy 15,000 or more points. Southwest uses dynamic pricing, so it’s hard to get more from your points with a (mostly) fixed-rate redemption. Given this — and since the purchase rate is higher than our valuation — it will be hard to score a good deal with this promotion.
Verdict: Probably not worth your while, but it can be worth it if you need to top up points for a specific award.
American Airlines AAdvantage
Current promotion: Up to a 35% discount.
Purchase rate: As low as 2.4 cents per mile.
TPG valuation: 1.77 cents per mile.
Ending date: TBA.American Airlines AAdvantage is offering up to a 35% discount on miles. You’ll get the highest discount when you buy 150,000 miles, which drops the price to 2.4 cents per mile. This is significantly higher than TPG’s valuation, but might be a good deal for specific high-end awards.
Verdict: This can be a decent deal if you expect to redeem your miles for otherwise expensive, premium tickets.” ~ The Points Guy