Decoding the Leading Hotels of the World Points Sale

Leading Hotels of the World (LHW) often runs promotions on their Leaders Club points, offering a chance to purchase them with a bonus. This recent sale presents an opportunity to acquire points at a potentially reduced rate. But is it a smart move for maximizing your travel rewards?

Before diving in, it's crucial to understand the value of LHW points. While the advertised rate might seem appealing, the true value lies in how you redeem them. Consider the cash price of a room at a Leading Hotel you'd actually want to stay at, and compare it to the points required. This will reveal the cents-per-point value you'd be getting.

Is Buying Points a Good Strategy?

Generally, buying points speculatively isn't the best strategy. Here's why:

  • Devaluation Risk: Loyalty programs can change their redemption rates, diminishing the value of your points overnight.
  • Limited Availability: Award availability at desired hotels can be scarce, especially during peak seasons.
  • Opportunity Cost: Your money could potentially earn a better return elsewhere.

However, there are scenarios where buying points can make sense:

  • Specific Redemption in Mind: If you have a firm booking in mind and the points significantly reduce the cost compared to paying cash, buying points can be a good deal.
  • Top-Tier Elite Status: Some programs offer valuable benefits at their highest tiers that can justify buying points to reach that status faster.

Credit Card Strategy for LHW Points Purchases

If you decide to purchase LHW points, strategically using your credit card can enhance the value proposition. Here’s how:

  • Use a Card with a Travel Bonus: Many credit cards offer bonus points or miles on travel purchases. Using one of these cards for your LHW points purchase can significantly boost your rewards earnings. Consider cards like the Chase Sapphire Preferred, Chase Sapphire Reserve, or American Express Platinum.
  • Meet Minimum Spending Requirements: If you're working towards a new credit card's welcome bonus, a points purchase can help you reach the required spending threshold.
  • Maximize Category Bonuses: Some cards offer bonus rewards on specific spending categories, such as online purchases. Check your card's terms to see if points purchases qualify for any bonus categories.

Actionable Takeaways for RewardSmart Users

  1. Calculate Redemption Value: Before purchasing LHW points, research the cash price of your desired hotel stay and compare it to the points required. Aim for a redemption value that exceeds the purchase price per point.
  2. Use the Right Credit Card: Leverage a travel rewards credit card to earn bonus points on your LHW points purchase.
  3. Consider Alternatives: Explore other options, such as booking through online travel agencies (OTAs) or using flexible points programs like Chase Ultimate Rewards or American Express Membership Rewards to book LHW hotels. These alternatives might offer better value and more flexibility.

Ultimately, whether or not to buy LHW points depends on your individual travel plans and reward strategy. Always do your research and weigh the risks and benefits before making a purchase. And remember, RewardSmart is here to help you compare options and make the most of your credit card rewards!