Honors points query

[Aston100]

Hi, I’ve not redeemed HH points before so not really paid much attention to how the pricing works or how people calculate what a HH point is worth.

1. Do hotels have a fixed points price per night which doesn’t change, but the cash price goes up and down based on demand and whatever other relevant factors? So if a hotel is 30k points per night today, it will stay at 30k points per night in a few months time?

2. I don’t understand the disproportionate jump in points pricing between the base rooms (standard room reward) and the very next category at any hotel (premium room reward).

3. I think a HH point is worth 0.4p to me. Here is my reasoning, so please let me know if I’ve missed something or just doing it completely wrong?
Most of my HH points (will) come from Amex MR conversion.
1 MR = 1 Avios = 1.6 Nectar = 0.8p
1 MR = 2 HH
Therefore 1 HH = 0.4p (if cashed out at Sainsburys etc) so it cannot be worth less than 0.4p to me based on the way I would go about obtaining HH points, I think.

Thanks in advance.

[Rob]

Standard pricing is based on the cash price BUT capped. So …. assuming a hotel has a 30k cap, £50 per night may be 15,000 whilst £100 may be 30,000. However … even if jumped to £200 a standard redemption would remain 30,000 due to the cap.

Once the daily allocation for standard rewards are gone, you are stuck with Premium Rewards. This are TOTALLY based on the cash rate at around 0.2p-ish per point. If you book this, Hilton pays the hotel the cash rate.

[Aston100]

Thanks Rob, your maths seems spot on about the premium room reward rate when I checked a couple of hotels just now.
Do people genuinely use points for this rate? it seems inefficient.
Are there ever standard room reward prices for rooms higher than the base level ones?

[Peter K]

Aston100 wrote:

Thanks Rob, your maths seems spot on about the premium room reward rate when I checked a couple of hotels just now.
Do people genuinely use points for this rate? it seems inefficient.
Are there ever standard room reward prices for rooms higher than the base level ones?

Usually it’s the base room (before potential upgrade if you have status). I’ve seen more premium rooms for points before (inc. executive rooms).