The Points Investor Valuations

Make it yours

Build your own baseline in five steps

1. List 5 to 10 redemptions you would really book in the next 12 months.
2. Price each one with real availability: cash price minus unavoidable taxes and fees, divided by the points required.
3. Take the median, not the average, so one great redemption doesn't inflate the result.
4. Discount it by 10 to 15% for devaluations and close calls. A Hyatt median of 2.10¢ less 15% gives 1.79¢, rounded to a 1.8¢ baseline.
5. Date it and review it every quarter, or at least after major changes in the program.

Chapter 5 of the book walks through the method and the five traps that distort valuations. The Baseline Calculator does the arithmetic for you.

Questions

Why are these lower than some blogs?

Many published valuations reflect premium-cabin travel, perfect availability, or a reason to make cards look attractive. A baseline you can repeat makes better cash-or-points decisions than a number you reach once a year.

How do I use a value?

Multiply the points an award needs by the baseline and add the cash fees: that is the award's Investor Cost™. Compare it with what paying cash really costs after everything the cash booking earns back, in the CVP Calculator.

How often do the values change?

We review them every month and after any major change in a program. Each row shows its source and date, and book-edition values are labelled "Book edition".

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