Point Me To First Class 15. The Value of Transferable Points Currencies
Jun 12, 2023
A timely look at recent award price hikes and why nontransferable points can leave you exposed. The episode explains fixed versus transferable point currencies and who gets hurt by devaluations. It highlights how bank-transferable points give diversification and more earning power across cards. Practical strategies focus on keeping options open and protecting your points’ value.
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United's Sudden Award Price Spike
- United quietly increased award prices across many international routes, raising most awards ~33% and some >55% without advance notice.
- Devon described examples: US–Europe economy from 30k→40k and business from 60k→80k, and larger increases on partner carriers like Lufthansa and Swiss.
Fixed Points Are Locked To One Program
- Points split into two types: fixed (airline/hotel-specific) and transferable (bank ecosystems), and fixed points cannot be moved to other programs.
- Devon used United miles as an example: once earned they live only in United and can only book United or partner-awarded space.
Transferable Points Unlock Multiple Partners
- Transferable points live in bank accounts (Chase, Amex, Citi, Capital One, Bilt) and can be moved to multiple airline or hotel partners.
- Devon notes Amex has 17 airline partners and Chase can transfer to 11, expanding redemption choices.