Should You Transfer Hyatt Points To American With A 25% Bonus?

Recently we saw a 20% bonus on points transfers from Starwood Preferred Guest to American AAdvantage, which in many cases represented a good deal. That’s because one of the best uses of Starpoints is converting them into airline miles, given that they transfer at a 1:1 ratio, with a 5,000 point bonus for every 20,000 points transferred. That means you can essentially get 1.25 airline miles per Starpoint.

Well, now another hotel chain is offering a bonus on points transfers to American AAdvantage, and I figured I’d look at the value of that.

You can receive a 25% bonus when you convert Hyatt Gold Passport points into American AAdvantage miles between September 15 and October 14, 2016. Bonus miles should be posted to your AAdvantage account within 6-8 weeks of when the transfer is requested.

The catch is that unlike with Starwood, Hyatt points don’t convert into American miles at a 1:1 ratio. Now, in fairness, Starpoints are a bit more valuable than Hyatt points on a per point basis, so that shouldn’t really come as a surprise. Instead, Hyatt points convert into American miles at 5:2 ratio.

That means 50,000 Hyatt Gold Passport points convert into 20,000 American AAdvantage miles, and through this promotion you’d get 25,000 miles instead. That means the best you’ll do through this promotion is a 2:1 transfer ratio, which is not a good deal.

Hyatt-Promo

Personally I value both American miles and Hyatt points at 1.5 cents each, so I’d need a better than 1:1 ratio to transfer points.

Park-Hyatt-Maldives-5
I’d much rather redeem 25,000 points at the Park Hyatt Maldives

That being said, if you’re in a bind and need American miles, then I suppose it could make sense to take advantage of this promotion. But it’s certainly not how I’d choose to redeem my Hyatt points…

Comments

  1. It’s been a few years since I transferred 50 k gold passport points into American miles
    But I think you may have this wrong
    Some years ago Gold Passport essentially copied the Spg 5k bonus if redeeming 50k in GP points
    I’ve always gotten the 5k bonus when transferring 50k gold passport points for a total of 25k when transferring to American
    One should get 25 k plus whatever bonus is currently being offered to my understanding if redeeming GP points to American miles
    Grand total for 50k in GP points to American miles during this promotion should be closer to 30k
    Unless something has changed that I am unaware of

  2. I’m surprised you didn’t mention it, but there seems to be some value here simply in the fact that it allows you to convert Chase UR into AA miles. Now I wouldn’t do it personally for the reasons you mention, but I know there are a lot of people who have big UR stocks who might find it worthwhile

  3. Here’s the fallacy in the argument that startpoints are “worth” more than Hyatt points.

    On one hand:
    Starpoints transfer to AA miles @ 1:1
    Starpoints transfer to UA miles @ 2:1 (yup, 2 starpoints get you 1 UA mile)

    On the other hand:
    Chase UR points transfer to UA miles @ 1:1
    Chase UR points transfer to Hyatt points @ 1:1

    Using the same reasoning, shouldn’t one conclude that 2 starpoints would get you 1 Hyatt point, so therefore HGP points are “worth” more than starpoints?

    Inquiring minds wanna know!

  4. With the demise of American Airlines mile currency value with massive devaluation.
    Probably a good reason to walk away from the promo
    American is destroying its number one revenue machine
    I’m using other programs for the first time in 20 years

  5. Inquiring minds with at least a lick of (business) sense would realize that certain US airlines are tied in with specific credit card issuers (UA/Chase, DL/Amex, AA/Citi & Barclay’s, etc.), and thus probably have it in their partnership covenants on their multi-billion dollar deals that transferring to non-partnered airlines would take a haircut on the ratio.

  6. You keep using that line about how I lack “business sense”, undoubtedly to imply that I am an ignoramus about “business” because I am scientist. That is stupid. Have you ever heard of Massachusetts Institute of TECHNOLOGY (MIT), and do you realize that most of the top American economists, including Nobel Prize Laureates, graduated or taught at MIT? The real value of advanced education is in the fact that it teaches one how to think clearly on ANY subject and not just on the subject of one’s specialization.

    I put up a simple syllogistic argument based precisely on the types of fallacious arguments that pass for travel blogoshere dogma. And do you realize that your response simply reaffirmed the notion that I advanced about the fallacy of such arguments?

    You can either address a comment intelligently, or just shut the hell up. To keep going on and on about “business sense” or “business acumen”, when it is completely irrelevant to how one plays the miles/points game, just emphasizes your ignorance.

    G’day!!!

  7. Scientists are quite smart by nature, especially in their chosen profession. As I’m sure you are in yours. Yet your repeated half-truths, and obstinate posts show a lack of true analytical ability in these discussions.

    Your known anti-SPG (and HGP) bias is pretty well known – you’ve been shouting into the wind for years now it seems on how great HH is, yet of course the smart money & wisdom of the crowds disagrees. And here you try and compare up transfer rates for a single currency into two hotel programs to try and illustrate SPG “weakness”, which is intellectually dishonest (as many of your posts are). Lucky’s done this comparison quite often actually: http://onemileatatime.boardingarea.com/2016/05/02/value-of-points/, and no, based on this single transfer ratio, a SPG point is not magically all of a sudden worth half a HGP point.

    And again, as I explained (which you apparently missed), Airlines & Hotels form strategic partnerships, and make it “expensive” for consumers to execute outside of that.

  8. the fallacy here is that some of you treat this DCS character as someone of great intelligence/importance, but he’s a fraud who brags about his imaginary MIT degreee.

    I went to a school like MIT and we don’t go around bragging about our education to prove a point, that’s seen as crass and a weak way to win an arguement.

    Dude, your routine is a joke and 90% of the folks who read you think you’re a self-important, delusional jackass. That’s probably a low estimate professor.

  9. @Kieran – trust me, public record that he didn’t. And I think he works in a lab, not a professor 😉

    Though I actually attended the university that somehow employs him, and I would have been shocked had any of my professors so clearly glosses over black and white, objective facts to get at some of these “opinions”. Some of them are beyond intellectually dishonest (like “You all agree Hilton Gold is the best midtier, thus Diamond is the best top tier”)…SMH

  10. Another stupid example that illustrates trying to compare the worth of a point/mile as defined by a single relationship/issuer (vs. looking across them holistically) is asinine:
    – Transfer 20K HH points to AA = 3,000 AA miles
    – Transfer 20K SPG points to AA = 25,000 AA miles
    -> Ergo, the conversion rate between HH and SPG is 8.33/1, even higher than Lucky’s 5.5/1 implied ratio.

    Done with that nonsense, and back to the topic at hand…unless you’re redeeming for a high CPM AA redemption (like on CX/JL C/F), I wouldn’t do it personally. The clowns running AA are like sheep and have ruined AA’s value proposition.

  11. Look moron, do you even know your own position? The “stupidity” illustrated with your examples is one that permeates the travel blogosphere and I illustrated. All you have done, therefore, is to reaffirm and support my thesis but with less subtle/more crude examples. Read the original post and absorb its real meaning. Do you see that it is a question and not an endorsement of any methodology? Do you see that it called such conversions fallacious…(fellatio-us would be about right).

    Goodbye!

  12. BTW, do you what the “values” of points peddled by travel bloggers really represent? Below is how one can arrive at them semi-rigorously.

    For SPG (full credit for the data below goes to link [1] below):

    Hotel Cat Value (cents/pt)
    1 3.8
    2. 3.5
    3. 2.0
    4. 1.8
    5. 1.9
    6. 1.7
    7. 1.9
    ————————————
    AVERAGE 2.4 cpp

    See? The “value” of starpoints being peddled is simply the mean of [mean room rate in hard currency ($) divided by rate of the same room in points currency] computed over all hotel categories. You can do the same for other loyalty programs…

    Note that if you follow the dogma in the travel blogsphere, loyalty points are more valuable when redeemed at “aspirational” properties. However, as illustrated above and argued by blogger Wandering Aramean from whose post [1] I derived the data above, that’s another fallacy because value of points are actually much higher at lower than at higher category hotels! One achieves twice the “value” at category 1 (3.8 cpp) than at category 7 (1.9 cpp) Starwood hotels. In other words, blogospere dogma gets it exactly backwards. Imagine that…

    [1] https://milepoint.com/forums/threads/exploring-spg-point-values-by-hotel-category.114263/

  13. Table re-posted for more clarity (hopefully)

    Cat — Value
    1 — 3.8
    2 — 3.5
    3 — 2.0
    4 — 1.8
    5 — 1.9
    6 — 1.7
    7 — 1.9
    ————————————
    AVERAGE 2.4 cpp

  14. DCS Intellectual Dishonesty Alert: “Here’s the fallacy in the argument that startpoints are “worth” more than Hyatt points.”

    (DCS pulls an outlier example out of his ass, ignoring the fact that Hyatt transfers 5:2 to AA but SPG transfers 1:1 w/o even taking into account the 25% bonus, ergo a stronger SPG vs. Hyatt valuation to start with)

    You’re letting your blind jealously/hatred of SPG get in the way of making rational points bro…give it a rest. No one agrees with you…for a reason.

  15. Yup. It is a fallacy. Do you understand meaning of the the word?

    I suppose and hope that others did see the points in my post, which you clearly missed and are hyperventilating to the point of incoherence.

    It looks like one of my posts pointing out another fallacy is still in “moderation”…..

  16. I haven’t seen any other commenter suggest that SPG points are worth half that of HGP…except you, using a non-standard/logical comparison (transferring SPG points to UA, which no one would ever do). The sole point of your comparison is to try and knock down the (universally acclaimed, except for you) SPG point valuation.

    Guess what…nobody’s buying it. Go back to defending HH, which no one cares about.

  17. This is precisely what I mean that by your did not get it: ” haven’t seen any other commenter suggest that SPG points are worth half that of HGP…except you.”

    I never suggested such a thing. I said it was a FALLACY. Do you understand the word?

    Anyone who has followed me for a long time knows my position: When one takes both the EARN and SPEND sides of the mile/point equation, all loyalty points are worth the exactly the same.

    Start points: 2.4 cpp; HH: 0.4-0.5 cpp. One earns ~6 times more points HH points a pop than starpoints

    Thus, 0.4 * 6 = 2.4 cpp, meaning that IN TERMS of Starpoints HH points are worth 2.4 cpp, i.e. no material difference between the currencies when adjusted for earning rates.

    HGP 1.4 cpp. One earns ~3 more HH points a pop than HGP points.

    0.4 * 3 = 1.2 cpp, meaning that in terms of Starpoints HH points are worth 1.2 cpp. i.e. no material difference.

    Ergo: HGP points and starpoints are worth exactly the same.

    Got the ‘fallacy” now? See how your hyperventilating is, well, stupid?

  18. Never post from a hand-held, especially without the ability to edit!

    decrypting the above: “This is precisely what I meant by you did not get it: “…”

  19. @ Kieran says: “…but he’s a fraud who brags about his imaginary MIT degreee.”

    I never claimed to have a degree from MIT. You, on the other had, just did. But judging from your poor comprehension — not unlike that of the other moron — it does not seem like the degree is doing you any good.

    Stop the ad hominems! I advanced a clear “thesis”, which should be addressed. Attacking me personally will get you my qualifications, which seem to irritate you…

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