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One of the things which makes the Starwood Preferred Guest® Credit Card from American Express and the Starwood Preferred Guest® Business Credit Card from American Express valuable is that Starpoints are so flexible. They can efficiently be redeemed for hotel stays, SPG Moments, or can be converted into airline miles.
The ratio of converting Starpoints into airline miles is usually already lucrative, though it has been sweetened even further.
20% bonus when converting Starpoints into AAdvantage miles
Presently there’s a promotion offering a 20% bonus when you convert Starwood Preferred Guest points into American AAdvantage miles between July 1 and August 7, 2015.
Starpoints convert into airline miles at a 1:1 ratio, and for every 20,000 points you transfer you receive a 5,000 point bonus. That means if transferring in the right increments, you’re ordinarily earning 1.25 AAdvantage miles per Starpoint.
However, through this promotion you’d get an additional 5,000 bonus miles for every 20,000 Starpoints transferred (since you get the 20% bonus based on the 25,000 miles that would be transferred). That means 20,000 Starpoints convert into 30,000 AAdvantage miles, which is a ratio of 1.5 AAdvantage miles per Starpoint.
The bonus points should post to your AAdvantage account within seven business days of the initial conversion activity posting. There’s no limit to the number of bonus points you can earn through the promotion. There’s also no registration required.
Redeem American AAdvantage miles for Cathay Pacific first class
Tips for maximizing this promotion
There are a few tricks you’ll want to keep in mind if you do choose to convert Starpoints into AAdvantage miles:
- You can only make one mileage transfer per Starwood account every 24 hours, up to 79,999 SPG points at a time. Given that the 5,000 point bonus is only for transfers in increments of 20,000 points, in practice you’ll just want to transfer 60,000 Starpoints per day, should you take advantage of this promotion.
- The name on the AAdvantage account has to match the name on the Starwood account. That being said, do keep in mind that SPG allows you to transfer points between members of the same household. So if you want to transfer your Starpoints to the AAdvantage account of someone else living at your address, you’ll want to transfer the points to their Starwood account first.
- American allows five day holds on award tickets, so if you have a specific use of miles in mind, you can always place the ticket on hold and then transfer Starpoints, as they typically post to AAdvantage accounts within a few days.
Redeem American AAdvantage miles for Etihad A380 First Class Apartments
Is this a good deal?
As I’ve explained before, I conservatively value Starpoints at 2.2 cents each, which is why I consider the SPG Personal AmEx and the SPG Business AmEx to be among the most valuable cards for everyday, non-bonused spend.
Assuming a valuation of 2.2 cents per Starpoint, and assuming you transfer in the right increments (meaning at a 1:1.5 ratio, by transferring in increments of 20,000 Starpoints), that’s like picking up AAdvantage miles for ~1.47 cents each. That’s a fantastic deal.
However, it’s important to note:
- Part of what makes Starpoints so valuable is that they’re pretty devaluation-proof. You have so much flexibility with Starpoints, given that they can be converted into airlines miles in any of about two dozen airline programs, can be redeemed for hotels, etc. If you’re holding onto points without an immediate use in mind, there’s huge value to having them in a flexible points currency.
- While American AAdvantage miles are extremely valuable now, I wouldn’t count on the current redemption rates sticking around forever, given that American’s award chart is now considerably more lucrative than those of Delta and United.
So I’d say converting Starpoints into miles can be a great deal if you have a near term use of AAdvantage miles in mind. For what it’s worth, American and Starwood offered an identical promotion last year at the same time. I wouldn’t be surprised to see it again at the same time next year, though wouldn’t expect to see it more often than that.
Redeem American AAdvantage miles for Qatar Airways A350 business class
One of the best uses of Starpoints is for airline mileage transfers. One of Starwood’s best airline mileage transfer partners is American. So getting an extra 20% on mileage transfers is pretty huge, if you ask me. If you have a specific or short term use in mind I’d absolutely take advantage of this promotion.
If you don’t think you’ll have a use for the miles in the next six or so months, I’d probably not take advantage of this promotion, and instead keep your Starpoints as flexible as possible.
Do you plan on converting Starpoints into AAdvantage miles during this promotion?