Should I use hotel points or pay cash for a vacation?
Pay cash when the points redemption gives you a poor cents-per-point value, and use points when it gives you a strong one. The deciding number is cents per point: divide the cash price of a stay by the points it would cost, times 100. If that figure comes in below your program's typical value, you are underspending your points and should keep them for a richer redemption — often paying cash for a cheap vacation package instead.
This matters because our tracked packages are unusually cheap. With 168 deals under $100 and an average of $301, the cash side of the comparison is low, which frequently makes points redemptions look wasteful next to a simple $99 Orlando package.
The points-versus-cash formula
- Find the cash price of the stay and the points it would cost.
- Cents per point = (cash price ÷ points) × 100.
- Compare to your program's baseline value (many hotel points are commonly valued near 0.5 to 1.0 cents).
- If the redemption is below baseline, pay cash and keep the points. If above, redeem.
Worked comparison
| Stay | Cash price | Points cost | Cents/point | Winner |
|---|---|---|---|---|
| $99 vacpack night | $99 | 20,000 | 0.50 | Cash |
| $199 median deal | $199 | 25,000 | 0.80 | Cash (close) |
| $533 Cancun stay | $533 | 40,000 | 1.33 | Points |
Reference table: cents per point
Read cents per point at the intersection of cash price and points required.
| Cash ↓ / Points → | 15,000 | 25,000 | 40,000 |
|---|---|---|---|
| $99 | 0.66 | 0.40 | 0.25 |
| $199 | 1.33 | 0.80 | 0.50 |
| $400 | 2.67 | 1.60 | 1.00 |
The rule of thumb: on cheap stays, pay cash and hoard points for expensive nights where each point stretches further. A $99 package that spares 20,000 points for a future high-value redemption is a double win. Size the cash side against a normal booking with the vacation savings calculator, weigh any presentation time with the presentation hourly-rate calculator, check the rate recap, and browse current deals.
https://vacationdeals.to/points-vs-cash-vacation-calculator