Is There Any Value Left in Wyndham/Vacasa Partnership?

As first reported on LoyaltyLobby, on March 26th Wyndham program will be adjusting award pricing  on certain hotels. And as usual, they are not telling us which ones. But truth be told, most hot Wyndham points deals have disappeared years ago, though occasional gems remain here and there.

What’s more notable about this update is an adjustment to Wyndham/Vacasa partnership. Right now you can redeem 15k points per bedroom as long as all-in average price of a rental  doesn’t run at more than $350 per night (used to be $500). On March 26th this amount will be further reduced to $250, a significant devaluation.

For example, a $249 1-bedroom property will cost 15k points per night, while a $255 property will run at 30k points. Conversely, a 2-bedroom property averaging $500 all-in per night will cost 30k points, while $510 one will run at 60k points. This will pretty much eliminate Hawaii and popular ski destinations if you want to redeem just 15k points per night. I’m honestly not surprised by this change. In fact, I’m surprised by how long the old scheme lasted. It was simply not sustainable for Wyndham to pay out $350-$500 per 15k points indefinitely.

I was hoping to take my family to Hawaii and utilize Vacasa, but that ship has now sailed. And that’s ok, as I’m not about to make expensive travel plans (outside of our budget) just to beat a potential devaluation.

What now?

I’ve written about our stays in North Carolina, Siesta Key and St. Augustine beach A few months ago we also used points on an oceanfront condo in Madeira beach (Fl) and I thought it was a tremendous value for only 15k Wyndham points per night.

I checked, and these rentals will still be available via new scheme. However, in all instances, you will only be able to stay during low season. Also, in the case of that condo in Madeira beach you will need to stay three nights or longer in order to be under $250/ per night limit.

So, there is still value left, at least for my family. I’m fine using points during off season in my home state of Florida. In fact, I often prefer it. During high season and holidays I try to utilize Hyatt and Hilton points, as CPP value is often quite good. Plus, resorts tend to offer more kid-friendly activities during busy weeks.

As of now, I’m planning to renew our Wyndham credit cards (with grandfathered $69 annual fee) since I get 15k points per card each year. At that price I’m still a buyer. For new applicants, Wyndham credit cards are still worth considering, especially Wyndham Rewards Earner Business version (non-affiliate link).

But what if you mostly acquire your Wyndham points via purchasing them on sale or via transfers from Capital One? Is it still worth essentially paying 1 cent per point? It will depend on your situation, but it can be a good deal under certain circumstances. If you like a specific rental and the price compares favorably to what you can book via AirBnB or Booking.com, it can be a nice arbitrage opportunity. You are essentially paying $150 for $200-$250 in prepaid Vacasa credit.

That said, you will have to look at all the details. Vacasa has a draconian cancellation policy where you lose  all of your points if you cancel your reservation within 30 days of your intended stay. Also, while I haven’t had major issues with my Vacasa rentals, there are lots of complaints about this particular platform. And don’t forget that the company is in a precarious financial situation, much worse than AirBnB. If it goes under, the best you can hope for is a points refund from Wyndham. Will you be able to use them on Wyndham properties if that happens? Personally, I would only book Vacasa rentals last-minute via current arrangement.

Lots of factors to consider, but one thing is for sure. The time of outsized Vacasa redemptions via Wyndham is officially over. But that’s life, and a reminder that all hot miles and points deals eventually die.