No matter how many miles you’re generating in manufactured spending each month, parting with them is never easy. One way to combat this is by making sure you are getting good value out of your point redemptions. That’s how I can feel good about dumping hard-earned miles and points – knowing I saved a decent amount of cash by doing so.
It takes three months to generate $30,000 of manufactured spend via American Express gift cards and too many unpleasant trips to the grocery store, Target, and/or Walmart to unload them all. All that hard work and the only thing you’re getting is a single free night at the Park Hyatt Sydney? It almost seems like a waste of time.
Of course, you can also opt to redeem those points for 6 nights at a Category 1 hotel, but the best way to deal with separation anxiety is to maximize your redemption value while also minimizing the amount of manufactured spending you need to do in order to meet your travel goals.
So what is the most effective way to manufacture spend your way to free Hyatt stays? I’ve put together a chart below that outlines the amount of points and Points + Cash required. Below that, you’ll find a comparison of how much manufactured spending is required to earn those points on the co-branded Hyatt, Barclay Arrival Plus, and Ultimate Rewards earning credit cards.
Since Chase recently announced it would discontinue the 7% dividend on the Sapphire Preferred card in 2015, I’m leaving out that 7% bonus to (and to keep this post evergreen). In addition, the “pay yourself back” option will be eliminated so I have adjusted the table to reflect that. The portion referencing Ultimate Rewards bookings takes into account the 20% bonus for direct Ultimate Rewards travel bookings.
All of the cards earn category bonuses. However, for the sake of simplicity I’ve calculated the manufactured spending requirements based on non-bonus spend. That’s 1 point per $1 for all cards. Except for the Barclay Arrival Plus card, which earns 2 miles per $1. Additionally, there’s a 10% rebate when miles are used for travel redemptions (which is factored in).
Note: Scroll right to see calculations past Category 6
Barring category bonuses, the Hyatt Points + Cash redemption using the Barclay Arrival Plus card requires the least amount of manufactured spending for free nights. The most drastic savings is a total of $5,750 in manufactured spending on Category 6 hotels. When the cash rate offered is less than the ones listed in the table, then booking cash is the best option.
It looks like manufacturing spending for category 4 must be 7,500 (not 6,000). This also will change totals from $16,000 to $17,500 and from $10,500 to $12,000. Total changes for category 4 will be $3,000
Thanks for catching that Alex!
I don’t think the calculation makes sense without using category bonuses. It would be nice if you went through this analysis using category bonuses such as 5x at office supplies stores for the Ink. A category 5 hotel would only cost $4,000 in MS which drastically changes this analysis.
Thanks for your feedback Jessica. That’s absolutely true, but I assumed most folks would know that the 5x bonus from Ink would require the least amount of ms. By just including the standard 1 point (since that is how most of us are earning our points these days, unfortunately), I figured folks could use the calculations to figure that 5x would incur 1/5 of the cost. For the sake of simplicity, I skipped the bonuses.
I loved the term separation anxiety as related to points and miles! I’m guilty!
I would have never pegged you for having separation anxiety, Pat. You do seem to be putting your points to great use though!
Ditto–great term. I am 6 mos. into the hobby, have accumulated a nice little pile of points/miles and am looking at the thousands of possibilities. It’s like a lot of saved cash–the “everything is possible” feeling is so good, you don’t want to let it go by having to choose just one or two options!
Looking at your example with the Arrival Plus Card, I’m assuming you are calculating the 10% miles back. My understanding of Arrival Miles is that you don’t get the 10% back until you actually redeem the required points correct? Meaning for your example on Cat 1, you still need to spend $2,500 to earn 5,000 arrival miles to cover the $5,000. Then you will get the 500 arrival miles back for future use. Is this correct?
That’s true. It’s a bit tricky because yes, you do need those miles in your account, but ultimately you’re using 10% fewer miles. That’s why I factored 10% into the calculation but included an explanation above the chart.
Good analysis. One thing to note that Hyatt doesn’t allow C&P for premium rooms (lounge access, upgraded floor/room etc.).
It will be good to see other hotel compare with Hyatt like Club Carlson, Marriott, SPG, IHG and Hilton.
The upside is you can use a Diamond suite upgrade to get a suite, which also gets you lounge access. Plus, a lot of times they’ll upgrade Diamond members to a club level room or grant them access to the lounge so they don’t have to give them breakfast in the restaurant. Overall, it works out nicely if you have elite status!