How to Evaluate Point Redemptions

Not sure whether to use points or cash for your next booking? This step-by-step guide will help you make the right decision every time.

The 5-Step Evaluation Process

Step 1: Find the Exact Cash Price

Search for the exact same booking with the same details:

Same dates and times
Same cabin or room type
Same cancellation policy
Include ALL taxes and fees

Important: Don't compare a refundable cash price to a non-refundable award. Make sure the products are truly equivalent.

Step 2: Find the Points Price

Search for the award availability and note:

Total points required
Any additional cash fees or taxes
Any close-in booking fees

Tip: If you have to pay significant cash fees on an award, add those to your calculation.

Step 3: Calculate Cents Per Point

Use the Pointversion calculator or this formula:

CPP = (Cash Price × 100) ÷ Points Required

If there are cash fees with the award, subtract those from the cash price first:

CPP = ((Cash Price - Award Fees) × 100) ÷ Points Required

Step 4: Compare to Your Baseline

Ask yourself these questions:

Is this CPP better than I could get by cashing out points? (usually 0.5-1.0 CPP)
Is this better than the program's average value? (see our guide for benchmarks)
Could I reasonably get a better redemption later?

Step 5: Consider Other Factors

CPP isn't everything. Also consider:

Earning opportunities: Will you earn more points by paying cash?
Elite status: Do you need the spending or nights for status?
Credit card benefits: Travel protection, insurance, etc.
Flexibility: Are change/cancel policies different?
Point expiration: Will your points expire soon?

Quick Decision Framework

Use Points If:

CPP is above 1.5 for flexible point programs
CPP is above 1.0 for airline/hotel-specific points
You have points expiring soon
You've already maxed out status benefits this year
It's a luxury product you wouldn't pay cash for

Use Cash If:

CPP is below 1.0
You're working toward elite status
You need the spending for a credit card bonus
You can earn a better CPP value elsewhere
The points have better uses available

Real Example Walkthrough

Let's evaluate a real redemption together:

Scenario: Round-trip flight from Los Angeles to New York

Cash price: $350 (including taxes)
Award price: 25,000 points + $11.20 in fees
You have 100,000 points in your account
You have a credit card that earns 2 points per dollar on travel

Step 1: Cash price is $350

Step 2: Award costs 25,000 points + $11.20

Step 3: Calculate CPP:

CPP = (($350 - $11.20) × 100) ÷ 25,000 = 1.36 CPP

Step 4: 1.36 CPP is decent for these points

Step 5: Consider other factors:

If you pay cash, you'd earn 700 points (350 × 2)
After this trip, you'd still have 75,000 points left
No elite status considerations (economy flight)

Decision: This is a reasonable use of points at 1.36 CPP. You're getting above-average value and you have plenty of points remaining. However, if you were close to earning a credit card bonus and needed the spending, paying cash might be better.

Common Evaluation Mistakes

Mistake 1: Comparing Different Products

Don't compare the cheapest basic economy cash fare to a standard award ticket that includes seat selection and a carry-on. Compare equivalent products only.

Mistake 2: Ignoring Your Earning Rate

If you're earning 5 points per dollar on dining but only getting 1.0 CPP redemptions, you're effectively getting 5% back. That's good! Context matters.

Mistake 3: Hoarding Forever

Points lose value over time due to devaluations. A 1.3 CPP redemption today might be better than a theoretical 2.0 CPP redemption that never happens because the program changes.

Mistake 4: Forgetting Subjective Value

A business class flight might be worth 5 CPP mathematically, but if you'd never actually pay $5,000 cash for it, consider what you would pay and calculate based on that.