Why Is This Report Useful?
Since there’s no set data for point valuation in the market, Pointimize report shows you the analysis behind the points valuation (CPP) by using historical data.
Making a decision on using points or using cash is always difficult when planning a trip. People have a tendency to feel like they are wasting their points and have the urge to save the points for a bigger better trip in the future. Thankfully, understanding Cents Per Point (CPP) will help you define the point value and get you the most bang for your buck!
Keeping CPP in mind, the points game can be easily understood. For example, if a hotel room costs $334 total, but can also be booked using 20,000 hotel points, then the point valuation for this redemption would be 1.67 CPP.
With this value in mind, how can you tell if 1.67 CPP is a good or bad redemption value?
To help you answer that question. Today, Pointimize will announce its Official Point Valuation Chart and show you the analysis behind the CPP valuations by using historical data from Pointimize’s website. The point valuations use the median value of the Point Redemption Distribution to show the valuation as a reference. By choosing the median it’s immediately clear that the CPP has a redemption value higher than 50% of the historical bookings.
Looking at an example with Hyatt’s distribution, the median is 1.74 and by setting the CPP to 1.74, this is the sweet spot where the CPP is neither over or undervalued. As the distribution changes from day to day, selecting the median value will give you a consistent and reliable understanding of the cash value of your points.
Large day to day CPP fluctuations tends to generate anxiety among point holders; by selecting the median as the CPP, the unnecessary stress of varying cash points comparisons while planning is removed. The data, points to the median as the ideal CPP.
For today’s report, we replaced Pointimize’s default CPP value with the median value; the CPP valuation will also be generated with every search result. We also calculate the CPP value for each booking so you can know immediately if it is more cost efficient to book by points. Remember, the CPP used is the median value of the search distribution.
Also, in the next revision of Pointimize, we will detail this concept more on the website in order to assist you in making the right decisions for award travel.
From now to the end of this year, we will continue introducing several results from analyzing the data collected from Pointimize, including Hotel Points, Airline Miles, and Credit Card Points. I hope this can help travelers make an informed decision on how and when to book a room or air ticket.
We have not yet decided on the next topic to share, but some that come to mind are:
Since the CPP distribution of World of Hyatt is already disclosed as an example in this introduction. I will cover Hyatt’s data in more detail next week. Don’t worry, the rest of the hotel chains will be discussed in the following weeks.
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