How I decide when to use points and miles

There’s a small window of opportunity now to plan your holidays. Hard to believe, but it’s really just around the corner! Right now, it’s good to mentally prepare while there are still options. Should I use points? Is it more advantageous to use cash? Here’s a high-level overview in what goes on in my mind when I pull the trigger to use points and miles for my travels.

Scenario #1: New Years Eve

here’s an extreme example of when to automatically use hotel points instead of cash

$1796 a night?! For the past decade, W Taipei commands a hefty premium for NYE due to its nightlife scene and location to Taipei 101. But holy guacamole, that is really expensive for a standard room.

In this scenario, it’s a no-brainer to use Marriott points instead of cash. Even though its loyalty program is priced “dynamically” now, it is still nowhere near its cash rates. So luckily, we secured not one, not two, but three rooms for New Years Eve with 201,000 Marriott points. Get ready family and friends, this NYE is going to be one for the books.

$1796 USD/night	67,000 points/night
$5388 for 3 rooms	201,000 points for 3 rooms
yeesh, have to take out a loan now	2.6% return in points value

Scenario #2: First Class flights

here’s an extreme example of when to use airline miles instead of cash

Money doesn’t grow on trees. Money doesn’t pop out from a Doraemon pocket. So obviously, I don’t plan on paying over 10,000 USD for an one-way flight. In this scenario, it’s another no-brainer to use miles.

Scenario #3: Cash-only Markets

common in places like Japan, there are a lot of boutique hotels that is cash-only, so the only option if you want to use points is thru travel portals at a flat rate

For example, Chase Reserve incentivizes you to use points where you redeem 60,000 points for $900 USD towards travel. Even though the idea of “free travel” can be tempting, this scenario cash is still king.

Overall, this is just to give you a brief overview in what I internally do when I plan my travels. There’s no correct formula. Ultimately, it’s a personal choice in when to use your points and miles. As long as you’re getting value out of it in the end, it’s a win-win scenario.