Buying points for any loyalty program can be an interesting way of topping up an insufficient balance or taking advantage of a promotional offer. However, this strategy is not always the most profitable. It’s essential to understand the mechanisms, costs and situations in which this option can really add value.
Generally speaking, buying points isn’t worth it, as the acquisition value often exceeds the actual value of the points.
However, in certain situations, this alternative can prove effective in bringing a trip to fruition or achieving specific objectives. For example:
However, in many situations, free accumulation remains a more advantageous option in the long term. Credit cards linked to loyalty programs, seasonal promotions and shopping portals offer opportunities to accumulate points at no direct cost, although this often takes longer.
Ultimately, it’s important to compare the cost of the points purchased with their actual value at the time of redemption. If the purchase saves more than it costs, then the operation is profitable. If not, other methods of accumulation or more strategic planning may be preferable.
Before proceeding, first check the availability of points flights and the total number of points required. Then compare the cash price of the ticket with the cost of buying the necessary points. This will help you determine whether buying points is more advantageous than simply paying cash for the ticket.
Let’s take a simple example:
This example shows that the purchase can be profitable when the value obtained in exchange exceeds the cost of purchasing the points. However, this profitability depends on the availability and price of rewards.
One of the major advantages of loyalty programs is the ability to earn points for free. Here’s how:
Here are a few examples of the best credit card offers available, often with generous welcome bonuses. These cards allow you to quickly accumulate a large number of points as soon as you start spending, sometimes enough to cover a round-trip flight or several nights’ hotel accommodation.
In addition to welcome bonuses, these cards offer benefits such as the first year free of charge, travel insurance, access to airport lounges and more.
As for online shopping portals, Aeroplan offers a wide range of promotions to earn points with its partners. You can usually accumulate between 5X and 7X Aeroplan points with recurring promotions via Aeroplan eStore for example, and sometimes up to 20X points!
However, these methods take time. If you’re planning a short-term trip, waiting until you’ve accumulated enough points could mean missing out on availability, especially on coveted award tickets.
In certain situations, it may be unavoidable to purchase points to finalize a reservation or make a travel project a reality. If you find yourself in this situation, it’s important to adopt a strategy that minimizes costs and maximizes the value of points purchased.
Points purchase promotions are generally the key to making this operation more beneficial.
Most loyalty programs regularly offer promotions that make buying points more appealing. These promotions often take the form of:
These promotions reduce the unit cost of points, making them more competitive to purchase.
For example, a promotion with an 85% bonus, which is common with Aeroplan, can reduce the cost per point to around 2.18¢.
For a promotion with a 100% bonus, which is rarer or targeted to certain people, the cost per point drops even further to around 2.01¢, tax included.
To make the most of promotions:
(cost of purchase including taxes and fees) ÷ number of points × 100 = cost in cents (¢) per point
Aeroplan regularly runs promotions to encourage members to buy points. During these campaigns, it is possible to receive bonuses of up to 125%, which significantly reduces the cost per point.
For example, in an 85% promotion, you can earn 46,250 points for a total of $1,006.30 (taxes included). This equals to a cost per point of 2.18¢.
($875 + taxes = $1,006.03) ÷ 46,250 × 100 = 2.18 ¢
These promotions can be beneficial if you are planning an exchange that will maximize the value of your points. However, the cost remains relatively high compared with other means of accumulation, making them a solution to be considered mainly for topping up a balance or in specific cases.
Milesopedia assigns a reference value of 2¢ per Aeroplan point, which means that buying points in this situation is disadvantageous. However, if you buy points at this price to use them on more expensive flights (such as in high season or in premium class), you could maximize their value if you redeem them at a value higher than the purchase cost.
Let’s take an example with a promotion offering 85% bonus points, where you could earn 46,250 points for a total of $1,006.30 (taxes included). You could buy points for business-class with Etihad Airways between Abu Dhabi (AUH) and Geneva (GVA) for around $1,000.
By comparison, the public fare for the same flight is over $3,300.
Another example: a spring break vacation to a popular destination like Disney World. Round-trip cash prices start at $1,650 per person, but it’s possible to snag some real gems, like a flight for just 25,000 Aeroplan points if you get them early enough!
To make up for the shortfall in points, it would cost you approximately $600, taxes included. A great way to travel at a lower cost, with only 55% bonus points!
When you don’t have enough points to cover the full cost of a booking, purchasing points directly at the time of redemption can be a strategic and advantageous alternative. Unlike buying points during general promotions, this method offers several specific benefits worth considering closely.
Let’s say you only have 66,000 Aeroplan points and you’re short 44,000 points to book this award ticket. In this case, you can purchase these points directly via the booking portal for $867.10 (taxes included) by selecting the first redemption option on the far left.
Cost of purchasing points via this redemption option: 913.30 – $46.20 (actual cost of taxes and fees) = $867.10
This brings the cost per point down to around 1.9¢, a rate often lower than that of regular promotions, where the cost per point can fluctuate between 2 and 2.5¢, or even more.
($867.10) ÷ 44 000 × 100 = 1,9 ¢
For a promotion offering an 85% purchase bonus, the cost per point is 2.18¢, as explained in the previous section. However, it is necessary to purchase slightly more points than the exact number required to meet your needs, due to the program’s predefined purchase thresholds.
It is generally recommended to favour the third redemption option with Aeroplan, as it reflects the actual cost of the reward and the exact amount of taxes and fees. However, if you’re short on points, it is often better to purchase them directly at the time of booking by selecting the first redemption option, rather than buying them separately and then using the third option.
It is important to note that the first redemption option (which includes the purchase of points via redemption) is only available if you have at least 75% of the actual cost of the bonus in points, as indicated in the third redemption option.
This method offers several distinct financial advantages:
As for the British Airways Executive Club, the “Avios Balance Boost” feature offers program members a beneficial way to increase their Avios balance. This option allows you to purchase additional Avios based on the percentage of points accumulated over the last 30 days, with potentially more competitive rates than traditional Avios purchases.
Members can choose to purchase 100%, 200% or 300% of the number of Avios earned over the previous 30 days. For example, if you have earned 15,000 Avios during this period, you can purchase an additional 15,000, 30,000 or 45,000 Avios via Balance Boost.
To use Avios Balance Boost:
The cost per Avios via Balance Boost can be lower than traditional purchase methods, which charge 3¢ to 4.75¢ when there is no promotion running.
Indeed, here is a comparison between buying Avios points via a 1X boost and a traditional purchase:
15,000 Avios points for US 187 versus US 365
(US$187.55 = CA 270) ÷ 15,004 × 100 = 1.8¢
(US 365 = CA 526) ÷ 15,000 × 100 = 3.51¢
The price differs according to the boost multiplier selected and varies according to the prevailing exchange rate, here’s a summary:
Milesopedia gives a value of 1.7¢ per Avios point. So it’s worth buying them only if you intend to use them at a higher value. A good example would be to fly Qsuite, Qatar Airways’ famous business class.
With 25,000 Avios points, you can buy an additional 75,000 Avios points for around $1,300 thanks to the boost offer, giving you a total of 100,000 Avios points.
With these 100,000 points, you can book a flight between Montreal and Seoul in Qsuite.
This flight, regularly priced at around $9,000, is then available at a fraction of its actual cost. The result: you enjoy a flight at an exceptional discount, thanks to the strategic use of the boost to buy your points.
Avios Balance Boost offers several advantages:
However, it is essential to note that this option is limited by the number of Avios accumulated over the last 30 days. So if you haven’t accumulated any Avios recently, Balance Boost will not be available.
A transaction can only be boosted once. If you have already used Balance Boost for a certain source of Avios, you will not be able to repeat the operation for the same transaction.
The following transactions are eligible for the boost:
However, some transactions are not eligible for boosting. Depending on the conditions, you may not be able to boost Avios obtained via:
On the other hand, transfers of points from programs such as American Express Membership Rewards or RBC Avion are eligible for Boost, which makes it particularly interesting (for your purchase, since Boost is a form of points purchase). This is not explicitly mentioned in the terms and conditions, but it works.
Planning an Avios Balance Boost can be particularly beneficial when a transfer promotion offers a 30% bonus for RBC Avion points transfers to Avios.
Purchasing points, whether for Aeroplan, Avios, Marriott Bonvoy, Alaska Mileage Plan or other programs, is a flexible solution that can be useful in specific situations, from topping up a low balance quickly to accessing luxurious experiences at a lower cost, such as a stay on a stilt in the Maldives for a fraction of the actual price thanks to the use of purchased points.
However, this strategy requires careful analysis to ensure that it is financially profitable. Systematically comparing the purchase cost with the real value of points when redeeming them is essential to avoid unpleasant surprises. In parallel, free point accumulation via credit cards, shopping portals or promotions often remains the most cost-effective method of achieving your travel goals.
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