Here’s a gem. Through March 31, 2012, US Airways is offering a 50% bonus on points transfers from their hotel partners to Dividend Miles. There’s no need to register, and the bonus points post 6-8 weeks after the qualifying activity.
The best transfer bonus here would be with Starwood Preferred Guest. SPG points transfer at a 1:1 ratio to US Airways Dividend Miles, and for every 20,000 points you transfer you get a 5,000 point bonus. That means transferring 20,000 SPG points would earn you 37,500 Dividend Miles during this promotion. That means you’re basically earning 1.875 US Airways Dividend Miles per SPG point, which is an amazing transfer ratio.
I’ve on many occasions purchased US Airways miles when they were selling for 1.5 cents each. Using that value, through this promotion I would be getting 2.85 cents of value per SPG point, which is more than I value them (2.5 cents each). I know many will say they can get more value out of points, though this isn’t retail value I’m stating, but rather their value to me. Now that US Airways has raised the cost of purchased miles to over 1.8 cents each, it’s even more of a no brainer for me.
When making the transfer, keep in mind that the transfer limit is 79,999 points per day. That means for all practical purposes you won’t want to convert more than 60,000 points per 24 hours, since that would max out the 5,000 point bonus for every 20,000 points you transfer.
The one thing I’m trying to figure out is what this part of the terms and conditions means:
Dividend Miles members will earn only one bonus when they transfer hotel points into Dividend Miles during the promotion.
I’m not sure if that means you can only earn the bonus points for one transfer, if the points all post at once, or what, but I’ll certainly be looking for clarification on that before making any transfers.
Transferring Membership Rewards points to US Airways ~1:1 ratio
It’s almost never a good idea to transfer American Express Membership Rewards points to SPG, though through March 31 Membership Rewards is running a 50% transfer bonus for SPG. So while the transfer ratio is usually 3:1, it’s now 2:1, meaning 40,000 Membership Rewards points earns you 20,000 SPG points, which still isn’t a good deal. That being said, through the US Airways transfer promotion you can convert those 20,000 SPG points to 37,500 US Airways Dividend Miles. So when all is said and done your 40,000 Membership Rewards points will net you 37,500 miles, close to a 1:1 ratio.
I’m not suggesting everyone run and transfer their points now, because I do believe Membership Rewards points just got much more valuable due to Singapore Airlines’ new policy of allowing saver awards in their new first and business class products. But I have for a long time been hoping that US Airways Dividend Miles becomes a Membership Rewards transfer partner, and this is about the closest I’ve seen to that for those of you looking to “cash out” your Membership Rewards points.
I’ll certainly be transferring a minimum of 60,000 SPG points, though won’t be converting any Membership Rewards points to SPG in order to take care of this promotion.
Coming up shortly: a summary of the Dividend Miles program and some of the best award redemptions it offers.