Buying Points and Miles: The Complete Guide by Program

Buying points: the short answer

Outside of a promotion, buying points almost always costs more than the value you get from them. For example, Aeroplan sells points at a base price of 3.75¢ CAD, while Milesopedia values the Aeroplan point at 2¢ CAD in our valuation of rewards points. During a promotion, however, the price can drop below the value of the point, and buying makes sense for a specific reward.

The rule comes down to three conditions. First, you have found the reward and confirmed availability. Next, the cost per point, including taxes and foreign exchange fees, stays below the value you will get. Finally, you only buy the points you are missing.

How much a purchased point costs

The table below compares each program's base price, the best price seen in recent promotions and Milesopedia's reference value. Prices in US dollars exclude your card's foreign exchange fees, and most exclude Canadian sales taxes.

Two things stand out. On the one hand, hotel programs sell cheaper points, but each point is also worth less. On the other hand, the gap between the base price and the promotional price often reaches 40% to 60%. Buying without a promotion almost always means paying full price.

How to tell if buying pays off

The method is the same for every program. It takes 10 minutes and prevents most bad purchases.

1. Find the reward before you buy. Check award availability for the flight or night, and note the number of points required as well as the taxes and fees.
2. Calculate the value of the reward. Subtract the reward's taxes from the cash price of the same flight or night, then divide by the number of points.
3. Calculate the real cost of a purchased point. Add up the price, sales taxes and foreign exchange fees, then divide by the number of points received, bonus included.
4. Compare the two. If the value of the reward clearly exceeds the cost per point, the purchase pays off.

Take a fictional example, a business class ticket for which you are 30,000 Aeroplan points short:

• Cash price of the ticket: $3,500 CAD
• Price in points: 70,000 Aeroplan points, plus $150 CAD in taxes
• Value of the reward: $3,350 CAD divided by 70,000 points, or about 4.8¢ CAD per point
• Cost of the 30,000 missing points: $840 CAD, if a purchased point costs you 2.8¢ CAD all in
• Result: you pay $840 CAD for points worth more than $1,400 CAD on this ticket

Conversely, for an economy flight listed at $450 CAD in cash, or 25,000 points plus $100 CAD in taxes, the reward is worth 1.4¢ CAD per point. At that price, buying points at 2.8¢ CAD makes no sense: pay cash for the ticket.

Taxes, currency and how the purchase codes

Most programs sell their points through Points.com, a Canadian company. The platform charges GST or HST, plus QST for Quebec residents. This is the case for Flying Blue, Marriott Bonvoy, IHG One Rewards, WestJet and Atmos Rewards, among others. In Quebec, taxes therefore add close to 15% to the listed price.

Several programs also bill in US dollars or euros. A regular credit card then adds foreign transaction fees, usually 2.5%. A card with no foreign transaction fees, such as the Scotiabank Passport^® Visa Infinite +* Card, removes that cost.

Finally, a purchase processed by Points.com does not count as a purchase from the airline or hotel. Your card will not give you its travel multiplier, only its base rate. The notable exception is buying Aeroplan points while booking a flight, which Air Canada bills directly.

Tips to lower the cost

Buy at the time of booking

With Aeroplan, if you are short on points when booking a flight, the Air Canada website offers to sell you the difference. You generally need at least 60% of the required points. In our example, 44,000 missing points cost $867.10 CAD taxes included, or about 1.97¢ CAD per point, without waiting for a promotion.

In addition, Air Canada bills this purchase directly. With the American Express^® Aeroplan^®* Reserve Card, it therefore earns 3 points per dollar, which brings the net cost down to about 1.86¢ CAD per point. We walk through this calculation in our article on buying Aeroplan points with the Aeroplan Reserve Card.

Target the right promotion tier

Most promotions increase the bonus or discount with the quantity purchased. At IHG One Rewards, for example, the current 100% bonus brings the point down to 0.50¢ USD only from 26,000 points per transaction. At Aeroplan, the maximum 30% discount applies from 100,000 points. Check the tier threshold before choosing a quantity, without going beyond what you actually need.

Transfer instead of buying

Points from transferable programs, such as American Express Membership Rewards or RBC Avion points, convert to several airline and hotel programs. A transfer often costs less than a purchase, especially during a transfer bonus. See our list of major points transfer programs in Canada and the Membership Rewards transfer partners.

Watch for targeted offers

Flying Blue, Atmos Rewards and Aeroplan sometimes reserve their best bonuses for certain accounts. Sign in before comparing: the price shown when logged out is not always the one offered to you. Flying Blue also offers a monthly subscription to buy Miles, whose prices you should check in your account.

Our buying guides by program

Each program has its own tiers, caps and promotion calendar. Our detailed guides are updated with current offers:

Airline programs

Hotel programs

The Milesopedia angle: families, students and tight budgets

For families

A family of four multiplies every reward by four. Points run short more often, and the temptation to buy is stronger. Before buying, pool your balances: Aeroplan Family Sharing combines the points of up to eight members for free, while a transfer between Aeroplan accounts costs 2¢ CAD per point, plus fees.

In addition, Flying Blue offers 25% off award tickets for children aged 2 to 11, which reduces the number of points to buy. During school holidays, when cash prices are high, topping up with purchased points pays off more easily. Our guides to family travel during school breaks and booking award tickets for big families share the best strategies.

For students and small budgets

On a small budget, buying points ties up money for a trip that is not booked yet. A first credit card with a welcome offer generally earns more points without paying upfront. See our selection of the best credit cards for students.

Welcome offers, the cheapest option

A welcome offer of 40,000 to 60,000 points is often worth hundreds of dollars, for a much lower annual fee. For a traveller who plans a few months ahead, it is almost always more profitable than buying. The following cards give access to Aeroplan, transferable Membership Rewards or RBC Avion points. The last one, with no foreign transaction fees, suits points purchases billed in US dollars.

Mistakes to avoid

Conclusion

Buying points remains a stopgap: it tops up a balance for a specific reward, especially during a promotion or at the time of booking. Always calculate the real cost per point, including taxes and foreign exchange fees, and compare it with the value of the reward. To build a balance over time, welcome offers, transfers and everyday spending cost much less.

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Frequently asked questions about buying points