Dollar Value of StarPoints?

[DavidnRobin]

Hey - how about another thread...?!
(sorry, other than the devaluation of SPs thread - I couldn't find this info)

What do SVO Tuggers think the dollar value of a StarPoint (SP) is?

Meaning, for example -
At the Westin@Home website you can get a $150 gift card for 14,000 SPs. That puts the cost at $0.01071 per SP (or 93.33 SP/$).
- or -
At WKV - the Explorer Package gives you 80,000 SPs for ~$2000 which works out to a cost of $0.02500 per SP (or 40 SPs/$). Or, you can get 4 nites at WKV for the equilvalent of 30K SPs ($175 per nite at $0.025/SP)

A pretty big difference (>2-fold), but of course with the first buying a gift card to make a purchase - and the second you are buying nites at a Hotel.

So SVO Tuggers... what do you think the dollar value of a SP is, and what is your reasoning? And, secondly, what gives you the best value for your SPs?

 

[Pedro]

Hey - how about another thread...?!
(sorry, other than the devaluation of SPs thread - I couldn't find this info)

What do SVO Tuggers think the dollar value of a StarPoint (SP) is?

Meaning, for example -
At the Westin@Home website you can get a $150 gift card for 14,000 SPs. That puts the cost at $0.01071 per SP (or 93.33 SP/$).
- or -
At WKV - the Explorer Package gives you 80,000 SPs for ~$2000 which works out to a cost of $0.02500 per SP (or 40 SPs/$). Or, you can get 4 nites at WKV for the equilvalent of 30K SPs ($175 per nite at $0.025/SP)

A pretty big difference (>2-fold), but of course with the first buying a gift card to make a purchase - and the second you are buying nites at a Hotel.

So SVO Tuggers... what do you think the dollar value of a SP is, and what is your reasoning? And, secondly, what gives you the best value for your SPs?

It depends on where you use the StarPoints. Last month I used 20,000 SP for 2 nights at the Frankfurt Airport Sheraton. The tower room I got would have been 400 euros, or $520 per night (not rack rate, but actual Internet rate for those days), so I essentially got the equivalent of 0.052/SP. If you can buy the SP any cheaper, you can actually come out ahead.

On the other hand, at the Swan and Dolphin where the internet rates are anywhere between $200 and $400 (depending on how much demand there is) you only get $0.02 ~ 0.04/SP.

I don't think the gift card you made reference to is a good use of StarPoints at only $0.01071 per SP.

 

[pointsjunkie]

it really depends on the hotel that is selected and the value of the starpoints.
i have gotten anywhere from $.02-.$05/sp.

there is another way of looking at it. if i spent $20,000 on my amex card, i would have 20,000 starpoints,which is alot of money to spend and not a heck of alot of starpoints. so when someone is offered the explorer package, $1995 for 80,000 starpoints, it could seem like a great deal. we work real hard to acquire 80,000 starpoints and i prefer to it without spending $1/sp acquired.

if you add in the promotions that don't cost anything, i have recieved over 62,000 starpoints for free, so if i add them to the starpoint nest egg it would come out between $.04-.$07/sp.

it really is hard to put an exact number on it.

 

[DavidnRobin]

it really depends on the hotel that is selected and the value of the starpoints.
i have gotten anywhere from $.02-.$05/sp.

there is another way of looking at it. if i spent $20,000 on my amex card, i would have 20,000 starpoints,which is alot of money to spend and not a heck of alot of starpoints. so when someone is offered the explorer package, $1995 for 80,000 starpoints, it could seem like a great deal. we work real hard to acquire 80,000 starpoints and i prefer to it without spending $1/sp acquired.

if you add in the promotions that don't cost anything, i have recieved over 62,000 starpoints for free, so if i add them to the starpoint nest egg it would come out between $.04-.$07/sp.

it really is hard to put an exact number on it.

Yes - it is an interesting number to theorize about. That's why I was asking. What have people gotten for their SPs, and what do they value them at (vs. what they perhaps paid...)?

The ExpPkg could work out to $100 for the 80K SPs - depending on how one looks at it.

 

[DeniseM]

there is another way of looking at it. if i spent $20,000 on my amex card, i would have 20,000 starpoints,which is alot of money to spend and not a heck of alot of starpoints.

From another point of view, we put about 50K a year on our AMEX - darn near every cent we spend, except our Mtge. payment. (It would make my life complete if I could figure out how to do that!) But that's money we would have spent anyway, and we pay it off every month, so it doesn't cost us anything, except the yearly card fee. So those points are nearly free. I like 'em! We use our points for free airfare to Hawaii every summer, and since we go in July, when airfare is high, it's a good value for us. Right now, tix for the 2 of us for the flights we're on this summer are $1,625 plus tax. We don't use our points for hotel stays, because I can get 4 star hotels on Priceline for $100 a night or less.

Just don't ask me to convert my TS to points!

 

[stevens397]

Just before the devaluation, we booked the Westin Puerto Vallarta for seven nights during Christmas break, 2007. Would have cost 42,000 Starpoints. However, we opted to pay double the amount to secure a two story, one bedroom, two bath suite for 84,000 points. The suite goes for $1,550 per night (probably less when not Xmas week) or $10,850 for the week. I think it works out to about 12 cents per point.

Best redemptions are for Business and First Class travel or hotels in resort areas during what other hotel chains would consider black-out periods. In general, I would never redeem for less than 5 cents per point.

BTW - and this is amazing - anyone could have simply purchased 84,0000 Starpoints from Starwood to pay for the suite. It would have cost under $3,000 to purchase them and get the week at PV - works out to just over
$400 per night for a magnificent suite during Christmas. Even at the new redemption rates, it's still a fabulous deal.

 

[pointsjunkie]

it really isn't a money value that i use my stapoints for. it is the flexibility to be able to take my family and friends to go on vacation with us. it gives them a vacation when they probably not be able to afford one.so as the mastercard commercial says "it's priceless".

we booked dana point before the revaluation,so for 48,000 sp we would have spent $495+tax at 5 nights is $2500. plus i will use points to upgrade to first class for the trip which is about $2500 savings.

i don't know why but i just love having starpoints( it let's me dream of the the places i could go anytime i want.) they say the planning and the dreaming is part of the fun of travelling.

i have hundred's of thousand's of miles but they don't have the freedom starpoints gives me.

sick ,yes i know,but with my job i have the flexibilty to travel 6-8 times a year.the starpoints give me many free vacations at some fabulous resorts.
the westin diplomat in hollywood,fla is one of my favorite places go there 2 times a year plus so many places where there are no starwood ts.

 

[RLG]

To me, starpoints are just another currency. I don't ascribe any mystical qualities to them, such as "they allow me to take vacations".

Since I'm a very analytical person, I need to estimate a range of value for my starpoints to make 2 decisions:

1) whether to use my cash back card, rather than my starwood amex;
2) whether to use starpoints rather than cash to pay for a given hotel stay.

As expected, the conversion to gift cards offered by Westin is a lousy value. If anyone is thinking of exchanging their starpoints for only 1.1 cents each, please PM me.

Similarly, as expected, the estimates of 5 cents or more of "value" offered by many posters are wildly high. If anyone really thinks they're worth that much, please PM me. I'll be happy to sell you a large number for a lot less.

 

[arlene22]

Before the recent devaluation, I booked two rooms for next Easter at the Westin Excelsior in Rome using StarPoints. When I crunched the numbers, it came out to >$.05/sp. Now that hotel is a cat 6 and would take much more SPs, and therefore, the value per starpoint would be lower. But I made my reservation when it was still a cat 5.

Other times we have used them and gotten less value. My rock bottom is
$.025/sp. I will not use them for less than that.

 

[formerhater]

I stayed 5 nights at the W Times Square a couple of years ago when it was Cat. 4 (10K points) and the best available rate was just over $500 with taxes. The prices haven't changed much, but I think it's now Cat. 6. I have a reservation at Marques de Riscal in Spain this summer. Best rate was $870+ taxes a night and I'm redeeming for 12K points (got in before it changed to Cat. 6). I have several other reservations for the next year that are at lower Cat. rates than current because I booked before the Category Creep.

I can't say that I really sit and put a dollar amound on my points, though most on FT suggest 2.5 cents is a fair "value" for them. When considering "purchasing" them, whether it be via an explorer package or some other source, I think it's important to consider when and how you plan to use them because they will only decrease in value over time. We have the option to purchase 86,500 for $1,800, because Princeville is not open yet. The price is good based on our experience, but we have enough things booked that it doesn't make sense for us to buy them to save them.

 

[stevens397]

Comments like those of RLG astound me.

People value and use their points for different reasons. Some people never want to pay cash and use them for everything they can. Some people don't accumulate many and try to use them very judiciously. Some only use them when they have a value they perceive to be special.

For me, I choose to use them to give me and my family experiences I might not ordinarily be willing or able to pay for. And using them for business expenses, I garner quite a few each year. For example, last summer, we used 145,000 Starpoints to get two First Class tickets on British Air, Newark to Paris. The tickets were worth over $10,000 each. Some might say, but wait - you would NEVER be willing to pay that much - and they would be right. But what an experience. And when I was Starwood Platinum, those free nights also got me ridiculous upgrades.

So yes, RLG, they are worth a lot more to me than they seem to be worth to you. If I didn't have enough to book Puerto Vallarta, I could have easily purchased them from Starwood and gotten one hell of a deal. I realize these deals are not always possible. But find a high demand resort during a holiday and I'll bet there are tons of examples where the value would be 5 cents per point and more. So Starwood has already set the bar at 3.5 cents each. Feel free to PM me your best offer!

 

[Transit]

To me the best values in using starpoints is 5th nite free awards,cash and points awards and no blackout dates It's hard to put an exact dollar value on starpoints because room prices vary greatly.The no blackout dates are good because it may be the only way I get to WSJ in pirme time

 

[califgal]

Last summer we spent 12,000-15,000 starpoints/night for a studio suite and a regular suite at the Sheraton ParkLane in London. My husband would have Never spent the $600/night it would have cost in cash. The starpoints come in handy sometimes for us!

 

[DavidnRobin]

So... in calculating the intrinsic value of SPs. There are two basic questions...

What would you be willing to pay for SPs ($/SP)?

What realistic price ($/SP) do you expect to sell (use) them for?

I realize that these values will be different for people, but this is what it come down to.

 

[glenn1000]

Last summer we spent 12,000-15,000 starpoints/night for a studio suite and a regular suite at the Sheraton ParkLane in London. My husband would have Never spent the $600/night it would have cost in cash. The starpoints come in handy sometimes for us!

I just used Starpoints for the first time to book the exact same mid-summer London hotel. It works out to $0.04 per Starpoint. Although I might have been able to get the same or a similar place using Priceline for half price it still seems like a good value.

 

[saluki]

So... in calculating the intrinsic value of SPs. There are two basic questions...

What would you be willing to pay for SPs ($/SP)?

What realistic price ($/SP) do you expect to sell (use) them for?

I realize that these values will be different for people, but this is what it come down to.

DnR-

Starwood sells points for 3.5 cents each which is obviously going to be on the high side in terms of value. If you plan on doing some hotel trips, though, you can definitely get good value out of Starpoints (3.5 cents & up).

For example, I am going to do 5 nights at the Westin Hilton Head this summer. The cost is 40,000 SP (cat 4 hotel using the 5th night free award). The AAA rate is for 5 nights is $1400 including tax which, amazingly enough, equals 3.5 cents per point.

Many other examples have been given in this thread of ways to maximize the value. There is no definitive answer but I personally would look to buy points in the 2 to 2.5 cent range but only if I would have use for them fairly soon. It all comes down to what your hotel travel plans & the going hotel rates for where/when you would like to go.