Stop Overpaying With Miles: The Redemption Rules Smart Travelers Use in 2025
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode of Smart Travel, hosts Megan Coyle and Sally French sit down with teammate Craig Joseph to discuss the complex world of points and miles valuations. The episode provides a comprehensive guide to understanding how much airline miles, hotel points, and credit card rewards are actually worth in real dollars and cents. (09:29)
- The main focus centers on NerdWallet's rigorous data collection process that analyzed 21 airline programs and 6 hotel programs to determine median point values, helping travelers make smarter redemption decisions and avoid common pitfalls in the rewards game.
Speakers
Megan Coyle
Megan is co-host of Smart Travel and a travel expert at NerdWallet. She specializes in travel rewards optimization and frequently travels internationally, with extensive experience in maximizing credit card points for luxury travel experiences.
Sally French
Sally co-hosts Smart Travel and brings her expertise as a travel journalist to the podcast. She's known for her practical approach to travel rewards and has extensive experience testing various airline and hotel loyalty programs.
Craig Joseph
Craig is a key member of NerdWallet's travel team who leads their comprehensive points and miles valuation research project. He has deep expertise in travel rewards optimization and frequently uses points for premium cabin international flights, demonstrating real-world application of the valuation methodologies he helps develop.
Key Takeaways
Compare Point Values Using Median Calculations
NerdWallet's valuation methodology focuses on median values rather than inflated premium cabin redemptions, providing realistic expectations for everyday travelers. (14:34) Craig explains that many other publications artificially inflate point values by focusing primarily on luxury hotels and premium cabins, which most people rarely book. By using median values from a large dataset spanning economy flights and various hotel categories, travelers get a more accurate baseline for determining whether a redemption offers good value. For example, if you find a United flight redemption worth 1.6¢ per point and NerdWallet values United miles at 1.2¢ each, you know you've found an above-average deal worth pursuing.
Credit Card Points Are Best Used Through Transfer Partners
Rather than booking through credit card travel portals, transferring points to airline and hotel partners almost always provides superior value. (18:45) Craig emphasizes that transfer partners consistently offer better redemption rates than fixed-value portals. For Chase Ultimate Rewards, transferring to Hyatt (valued at 1.8¢ per point) far exceeds the portal's 1¢ rate after Chase's points boost devaluation. This strategy requires learning partner programs, but the payoff is substantial - especially for international travel where you can access Star Alliance or Oneworld partners through programs like United or American Airlines respectively.
Book Award Flights Closer to Departure for Better Value
Airlines often reduce award pricing as departure dates approach to fill empty seats, providing up to 20% better point values for last-minute bookings. (35:11) The research shows flights booked 15 days out consistently offered better value than those booked 60, 90, or 180 days in advance. This creates an opportunity for flexible travelers to maximize their points, though Craig warns about potential complications with point redeposits if you need to cancel and rebook. A smart strategy involves booking early for peace of mind, then monitoring prices closer to departure to potentially cancel and rebook at better rates.
Hyatt Points Dominate Hotel Loyalty Programs
Hyatt points offer exceptional value at 1.8¢ each compared to competitors like Hilton (0.4¢) and Marriott (0.7¢), making Hyatt the clear winner for hotel redemptions. (26:23) This dramatic value difference stems from Hyatt's award chart system that provides more stable pricing compared to the dynamic pricing used by other chains. The example shared shows luxury Hyatt properties available for 40,000 points per night, while comparable Hilton properties might cost 210,000 points. For credit card holders with transfer options, directing points to Hyatt should be the default strategy for hotel stays.
Premium Cabin Redemptions Can Provide Outsized Value
Business and first-class redemptions often deliver value far exceeding standard calculations, making them worthwhile for special occasions or long-haul flights. (29:45) Craig's example of using 60,000 Alaska miles for a business class flight to Europe (worth over $5,000 in cash) demonstrates how premium cabins can yield 9¢ per point value compared to the 1.2¢ baseline for Alaska miles. While you'll use more points than economy (60,000 vs 25,000 for the same route), the value proposition becomes compelling for travelers willing to splurge on comfort and luxury amenities they'd never pay cash for.
Statistics & Facts
- NerdWallet analyzed 21 airline programs and 6 hotel programs to determine their latest point valuations, representing a comprehensive dataset for accurate median calculations. (14:54)
- Chase's points boost feature is only available on approximately 3% of economy flights and around 10% of flights overall, primarily on United and international partner airlines. (21:13)
- Award flights booked 15 days before departure offer approximately 20% better value than flights booked further in advance, as airlines reduce point requirements to fill empty seats. (35:13)
