Buy Hilton HHonors points with a mystery discount - up to 50% off in some cases

Seems to be the times for points sales. Yesterday, we wrote about IHG Rewards Club's points sale with a bonus of up to 80%. Here's a Hilton HHonors promotion this time, with a mystery discount, going up to 50%. The promotion is valid till 16 September 2016. Is this worth going for? Find out below.

Basically, you get a targeted level of discount on points purchased. I'm not sure if the % of mystery discount is based on previous purchase history, stay history or elite status. I for one am inclined to think it is more based on elite status (you'll see why I think that way, below).

Hilton normally allows members to purchase up to 80,000 points every year, at a price of US$10 per 1,000 points - or $800 for 80,000 HHonors points. Under this sale, you can get them for up to half that price. 

I'm a Hilton HHonors Diamond member thanks to a status match late in 2015, and have had only 2 nights' stay in 2016 so far. Yet, I've been offered a 50% discount.

You could argue that a 50% discount is similar to a 100% bonus (making the recent 80% bonus offer look inefficient), and you'd be partially right. The reason is, with a bonus points offer you can buy whatever base points it takes to yield a total number of points you require. And if that's less than the annual purchase limit, you can still purchase the difference later. That's not the case with a discount offer, though I think I'd personally prefer paying less than having more points.

You can find the promotion here.

Analysis

At a 50% discount, I'll be paying about Rs 27,200 for 80,000 points, or Rs 0.34 per point. Compare that with our standard valuation of Rs 0.19 per point for HHonors points in India. That said, there are indeed some properties and/or specific dates where/when paid rates are far higher, and it may make sense to use points instead, thereby driving a need to buy points.

Take a look at these two properties, for instance, for dates around Christmas this year.

Hilton Jaipur: Requires 20,000 points, or about Rs 6,800 worth of points purchased under this 50% discount promotion. That gives you the ability to book a room that has a paid rate of Rs 10,000++, which is some amazing saving.

Hampton Vadodara: Requires 5,000 points for an award night, which will cost you about Rs 1,700 under this 50% discount promotion. Those points will get you a room that has a paid rate of Rs 5,100++. Which means you're paying less than a third of the paid rate, for the same stay. Isn't that absolutely fantastic? 

Of course, not everyone has plans to spend Christmas time at the Hampton Vadodara!!!

Hilton Jaipur

Nonetheless, the points can be useful if you're headed to an expensive location and/or at a time when it is peak season and so paid rates shoot through the roof.

Conclusion

I've always said that I wouldn't purchase points speculatively. Devaluations can happen any time, and I don't want my points to be worth less than what I've bought them for. That said, if there's an imminent travel coming up for which the cost using purchased points is going to be lower than paid rates, then by all means, go for it.