Why Current SPG Promo Makes a Case Against Using Amex SPG for Everyday Spending

SPG points are considered to be the most valuable currency in this hobby. And actually, in this particular case, I’m in total agreement with the masses. When it comes to potential redemption value and sheer number of partners, SPG point is tough to beat.

But is it worth earning SPG points on un-bonused everyday spending? I don’t believe it is for most regular folks.  If you are new to this blog, I recommend you read the post Should You Use Amex SPG on Non-bonus Categories if You Don’t Have Chase Freedom Unlimited?  for more on this topic.

But let’s say you did the math and decided that earning SPG points is the way to go for your particular situation. You should still consider using a product like Citi Double Cash instead. But but but, that card earns 2 cents per dollar and the cheapest  rate at which you can buy SPG point is 2.27 cents, right?

It’s true, through March 16th, if you buy at least 5,000 SPG points, you will pay 2.27 cents per point    It’s a non-affiliate link, or you can join Topcashback through my referral link (or someone else’s) and get 1.5% cash back by going through Points.com. That will bring the price down a bit. This promotion was run by SPG in the past and I suspect it will come back at some point before the final merger with Marriott is complete.

Don’t forget about the annual fee on Amex SPG card

When accumulating SPG points via everyday spending, the $95 annual fee is something I recommend you factor into your analysis. Here is where many folks will object that Amex Offers will surely make up for it. True, but you could have been using a no-fee Amex card instead!

To be fair, lately American Express has been offering juicy retention offers to Amex SPG cardholders. That will certainly change the math. And yes, there are perks like BOINGO passes, elite qualifying nights, yada yada yada. In addition, the business version of the card comes with complimentary Sheraton Club access. This is a solid benefit IF you actually utilize it.

Otherwise, for many regular folks that $95 fee will be an actual $95 expense. So, let’s say you expect to accumulate around 20k SPG points over the next year. Unless you are paying for stays at SPG properties, you will only earn 1 SPG point per dollar. So, but that logic, 20k points will cost you $400. How come? Because you could have earned $400 via Citi Double Cash card.

But it gets worse. Citi Double Cash has no annual fee, so you have to add $95 to the total. By that logic, you are paying 2.47 cents per SPG point. Why not just buy them via current promotion instead? I realize it’s hard to part with cash when you could be earning “free” SPG points. But as you can see, they are anything but free.

The math is even worse when you need a smaller amount. If you only expect to collect 5,000 SPG points per year via Amex card, you are paying 3.9 cents per point. That’s more than the regular price of 3.5 cents that you can get every single day on SPG website. To be clear, I’m not telling you to buy SPG points for 2.27 cents apiece. I’m probably not going to, though I may need to top up an account for a specific redemption (more on that in another post).

Many will argue that buying SPG points without a specific use in mind is foolish. Then again, when you renew your Amex SPG card and cough up $95 upfront, you are investing in SPG currency whether you like it or not.

There is a lot of uncertainty with this whole Marriott/SPG merger and I see many betting on SPG points somehow being worth more in 2019. I don’t see it. The ratio is already set: 1 SPG point is worth 3 Marriott points, period. I seriously doubt Marriott will enhance its program just to appease SPG loyalists, though I could be wrong.

Whether you view 1:3 transfer as fantastic value will depend on your situation. If the answer is yes, then by all means, consider buying SPG points via current deal. Your account has to be open for 14 days, so don’t procrastinate. You certainly won’t be able to buy Marriott points for 0.75 cents apiece otherwise. The price on SPG points is also as low as it gets, and I doubt it will ever get lower.

Personally, I’m sitting this one out and the reason is simple. I’m in this hobby with the goal of obtaining deeply discounted travel. And the price of 2.27 cents per SPG point to me is anything but deeply discounted.

A few reasons to consider buying SPG points now

1) You want to top up your mileage account for a specific award. If you only need 5,000-6,000 miles, buying SPG points is probably the way to go.

2) You are looking to redeem Marriott points on Air+Hotel package

3) Low-category Marriott and SPG hotels. One excellent example is Four Points by Sheraton Niagara Falls Fallsview that is currently a category 2 (3,000 SPG points on weekends, 4,000 points on weekdays). Thanks to current promo, you can spend a summer weekend here for $136 all-in.

To me, this is one of the best deals in SPG program. While the property doesn’t look fancy, the location can’t be beat. During the summer, hotels next to Niagara Falls charge a premium. Buying points can be a great way to experience this amazing natural wonder on the cheap.

This hotel runs at $150-$200 during the summer and occasionally, the rates can be downright insane:

This property will become a category 4 on March 6th, so there isn’t much time left to lock in the current rate. There are other examples where purchasing SPG points will make sense, so do your research. I’m not going to Niagara Falls this summer, and certainly won’t be planning a trip just to take advantage of a hotel deal. But if you’ve been thinking about visiting this area (and you should!), now is as good a time as any.

Readers, are you collecting SPG points via everyday spending? Why/why not?

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