Is buying Starpoints worth it with a 25% discount? Currently, through May 31, 2014, SPG is offering up to 25% off 20,000 Starpoints. The discount is tiered, so you'll get a smaller discount if you buy fewer than 20,000 Starpoints:
• Get 10% off 500–9,500 Starpoints
• Get 15% off 10,000–14,500 Starpoints
• Get 20% off 15,000–19,500 Starpoints
• Get 25% off 20,000 Starpoints
If you max out this promotion, you can buy 20,000 Starpoints for $525, a cost of 2.6 cents per point. I generally value my SPG points at ~2.3 cents per point, when used towards miles transfers, since we always redeem for international first class or business class.
Hard to Earn Starpoints Unless You Have Many Starwood Stays or High Spend on the Card
The regular bonus for either the personal SPG AMEX or the business SPG AMEX is only 25,000 Starpoints, with an enhanced 30,000 signup bonus usually available around August or September each year. And while it used to be possible to get these bonuses again after a year of not having the card, AMEX Signup Bonuses Will Become Once in a Lifetime on May 1 making it even harder to earn Starpoints via credit cards.
The main way of earning Starpoints is via stays at Starwood hotels or with high spend on an SPG AMEX card.
Starpoints' Best Use: Transfer with 25% Bonus to Airline Frequent Flyer Programs (But Allow Time)
Starpoints' best value is to transfer them in 20,000 increments to an airline frequent flyer program–see SPG Airline Partners: Transfer Starwood Points to Miles. Starwood's best and most luxurious properties are overpriced as award stays, and I personally don't find most St. Regis or W properties to be all that great–if there are Four Seasons, Mandarin Oriental or Virtuoso alternatives in a given destination, they are typically much better. And the best hotel redemption value, Cash & Points, took a hit with the SPG Cash & Points Devaluation in 2013.
The downside of transferring Starpoints to airlines is that it takes time–it isn't instant, so you'll need to transfer well in advance of being able to book your award. If you see an award, you risk the space disappearing during the time it takes the Starpoints to transfer. See SPG Points Transfer Times to Airlines.
Where Buying Starpoints Could Be Worth It: Topping Up for Awards
I've already written on the Top 10 Best Ways to Use SPG Points, focusing on great first class award redemptions using Starpoints transferred to Alaska Mileage Plan, JAL, American AAdvantage, Singapore KrisFlyer and British Airways Avios. But another good bet could be a transfer to Lufthansa Miles & More, for example if you earned 65,000 Miles & More Miles with the Lufthansa Miles & More card and spend on the card, and just need 20,000 more miles to book one way in Lufthansa First Class.
You could also use Miles & More miles to fly United BusinessFirst for 17,000 miles one way, vs. 25,000 miles which United charges. See Best Ways to Use Lufthansa Miles & More Miles and Award Chart.
FAQ
Can I Earn 2X Starpoints per Dollar Spent By Charging the Purchase to My SPG AMEX?
No–this is not a Starwood hotel stay, and the transaction is processed by Points.com, so you merely earn the normal miles or points you would with a general purchase using your credit card, for example 1 Starpoint per dollar using your SPG AMEX.
How Long Does It Take the Purchased Starpoints to Post to My SPG Account?
Up to 24 hours. Per Points.com, the Starpoints cannot be expedited, so allow up to 24 hours.
Can I Buy or Gift More Than 20,000 Starpoints at the 25% Discount?
No–each SPG account may receive up to 20,000 purchased Starpoints per calendar year, whether purchased by the account holder or received as a gift.
Can I Buy 20,000 Starpoints for Each SPG Member in My Household and Transfer Them into My Account?
Yes, you can. Unlike AMEX Membership Rewards points, which cannot be transferred to your spouse or anyone else (only to a frequent flyer account or loyalty program), you can transfer Starpoints to a household member (need not be related to you) as long as both of you have been at the same address at least 30 days. Also see How to Transfer Miles and Points Between Accounts.
The Verdict: 2.6 cents per Starpoint is a lot to pay, and is unlikely to be worth it for most hotel stays, unless you find a good Cash & Points rate. It could be worth it to top up your Miles & More, JAL, or Alaska Mileage Plan account if you just need a few thousand more miles to redeem for an award, and have allowed time for the points to transfer.
Do you plan to buy Starpoints?
Related Posts
SPG Airline Partners: Transfer Starwood Points to Miles
Top 10 Best Ways to Use SPG Points
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