While not nearly as lucrative as Starwood’s cash & points program, where the savings can be disproportionate, Priority Club has nonetheless offered a fixed cash & points redemption option for a few years now. At the beginning you could reduce the cost of an award stay by 5,000 points for $30 per night or reduce the cost of an award stay by 10,000 points for $60 per night.
This basically made it possible to buy Priority Club points for 0.6 cents each. The way the system worked was that if you made a cash & points booking your account would be credited those extra points, and the reservation would then be processed and charged the full number of points required. If you turned around and cancelled your reservation you would get the full number of points back but no cash back.
Back in November of 2010 Priority Club raised the co-pay amount for the 5,000 point discount from $30 to $40 per night, while keeping the 10,000 point discount at $60 per night.
Well it appears as if overnight, without any announcement, Priority Club has raised the cost of the 10,000 point discount from $60 to $70.
So that means Priority Club points now basically cost 0.7 cents each to “buy.” Between this and the award chart devaluation, it’s not turning out to be a great year for Priority Club.
(Tip of the hat to Stvr)