Typically redeeming points from a loyalty program against purchases from a large retailer is not a good idea. The point valuations tend to be poor, and you are best served using your points elsewhere. Rumors on the Internet is that Hilton is asking its co-branded card holders whether they would like to be able to use their points at Amazon, with a redemption rate of 0.5 cents a piece.
Is this A Good Deal
Whether you are an existing cardholder or applying of r a Hilton card, the ability to redeem your points for 0.5 apiece at Amazon could be a real winner.
The Hilton Honors Ascend Card From American Express (learn more) carries a $95 annual fee and comes with an eye-watering 125,000 welcome bonus when spend $2,000 in the first 3 months of card membership. The card also earns 12X per dollar at Hilton Properties. Redeeming your bonus for 0.5 cents apiece would wield $625 of value which covers several years of card membership fees.
Also, the return from every dollar spent at Hilton properties (earning 12X) would work out at 6%, which is fantastic value.
The entry level Hilton Honors Credit Card from American Express (learn more) comes with no annual fee and features a 75,000 point welcome bonus when you spend $1,000 in the first 3 months of card membership. The card also earns 7X at Hilton properties. The welcome bonus would work out at $325 of value at Amazon, and every dollar spent at Hilton would yield a 3.5%, this is terrific value for a card with no annual fee.
Small business owners who hold The Hilton Honors American Express Business Card (Learn More), can generate some great value. The card comes with an impressive 125,000 point welcome bonus when you spend $3,000 in the first 3 months of card membership. The card carries a $95 annual fee and earns the following:
- 12X for Hilton Stays
- 6X per dollar on airfare booked directly with airlines, as well as restaurants and gas stations
- 1X on everything else
These figures can be tremendous value, the welcome bonus works out as $625 of value at Amazon, Hilton stays would yield a 6% return, and airlines, restaurants, and gas stations would produce a 3% return. Whichever way you look at it this is excellent value.
Will this go Ahead
We think yes and can’t see the downside of this new functionality. Amex would end up with more purchases being put on its cards, as well as an increase in card members. Hilton would see some of its rooms freed up, as well as offer much better value to its customers. Finally, this increased option and value is always good news for consumers. With this change being win-win for all parties we can’t see why it would not be implemented.
We value Hilton Honors points at 0.6 cents apiece, redeeming for close to their valuation for anything you can get from Amazon is a great option and would significantly increase the flexibility of Hilton Points. If you earn most of your Hilton stays from bonuses, stays, and Credit card spend at Hilton properties then this new functionality could be a big boost in the value of your Hilton Points.