Why transferable points and miles are worth more than other rewards

Editor’s note: This is a recurring post, regularly updated with new information.

If you’re familiar with TPG’s valuations, you’ll notice transferable rewards currencies such as American Express Membership Rewards points and Chase Ultimate Rewards points consistently rank as some of the most valuable rewards.

You can earn these rewards with some of the best travel credit cards. But what makes these rewards particularly valuable is the ability to transfer them to various airline and hotel programs — hence why we refer to them as transferable rewards.

Woman traveling — GISELLEFLISSAK/GETTY IMAGES

If you look at TPG’s valuations, you’ll notice you almost always “lose” value when transferring these rewards. For example, you can transfer Chase Ultimate Rewards points to World of Hyatt at a 1:1 ratio, but because our October 2024 valuations value Chase points at 2.05 cents each and Hyatt points at 1.7 cents each, you’d “lose” 0.35 cents per point with this transfer.

You might wonder why we value transferable rewards more than airline miles and hotel points. In this story, I’ll discuss what makes transferable points valuable and why you should earn transferable points.

Diversify your exposure

With so many devaluations, it’s no secret that points and miles are a poor long-term investment. That’s why we don’t recommend hoarding points and miles. But if you want to build a stash of rewards for an upcoming trip, one of the best ways to protect yourself against devaluations is by earning transferable rewards.

Man using a laptop and holding a credit card — PIXELSEFFECT/GETTY IMAGES

If you have a chunk of your points and miles in a single loyalty program, you will lose significantly if a devaluation occurs. But with transferable rewards, you can transfer to the program with the most appealing award rates once you’re ready to book.

Access to many hotel and airline programs

Transferable rewards also give you more flexibility than any single airline or hotel loyalty program.

For instance, if you’ve been accruing Delta SkyMiles on the Delta SkyMiles® Gold American Express Card, you’re limited to redeeming your miles within the SkyMiles program. If you need to fly from New York City to London on a specific date and the flight is 100,000 Delta miles, that’s your only redemption option.

Delta Airbus A330-900neo Comfort+ Main Cabin — ZACH GRIFF/THE POINTS GUY

On the other hand, if you’ve been earning Ultimate Rewards points with the Chase Sapphire Preferred® Card, you could transfer your points to various programs — including Air France-KLM Flying Blue, British Airways Executive Club and Virgin Atlantic Flying Club — if you find a better award option. Likewise, if you found a one-way flight for $450, you could redeem 36,000 Chase points to book this flight through the Chase Travel℠ portal.

TPG’s valuations give transferable rewards higher valuations than the currencies of the airline and hotel programs you could transfer to since transferable points allow for more flexibility.

Transfer bonuses

The major credit card rewards currencies routinely offer transfer bonuses. You can transfer your rewards at a better ratio with a transfer bonus. Normally, these range between 15% and 40%.

Man and woman looking at a laptop — MORSA IMAGES/GETTY IMAGES

Depending on what’s available when you’re ready to book, a favorable transfer bonus may boost the value you can get from your transferable rewards. You might even get enough points or miles for premium economy seats if you transfer the rewards you’d typically need for economy seats during a transfer bonus.

Transferable points and miles

Now you know why transferable rewards are more valuable than airline miles and hotel points. Here’s some information to consider about each of the major transferable rewards programs.

American Express Membership Rewards

Top cards to consider:

Capital One miles

Top cards to consider:

Chase Ultimate Rewards

Top cards to consider:

Citi ThankYou Rewards

Top card to consider:

Citi Strata Premier℠ Card (see rates and fees)

Bottom line

With transferable credit card rewards, you can convert your hard-earned rewards into points and miles with various hotel and airline loyalty programs. By doing so, you can avoid losing value when one hotel or airline program devalues its rewards. Plus, you can explore a vast network of partners and choose the one that offers the most value and benefits for each redemption instead of being limited to a single airline or hotel program.