How Much Are Travel Points and Miles Worth?

For many in Singapore, travel points and miles represent valuable tools for unlocking dream vacations. Whether earned through airline loyalty programmes, hotel stays, or credit card spending, understanding their true worth is crucial for maximising rewards and making informed travel decisions. 

This article provides a comprehensive guide to evaluating and leveraging your points and miles for the best possible travel experiences, covering airlines, hotels, and credit card rewards.

The valuation of points and miles represents an approximation of their monetary value when redeemed for travel. Factors influencing this valuation include the specific redemption options available, the flexibility offered by the loyalty programme, and the partnerships it holds with airlines, hotels, and other travel providers. 

It's crucial to understand that different loyalty programmes may assign varying values to their points. Understanding the value of these points is paramount for travellers seeking to optimise their rewards and extract the maximum benefit from their travel expenditure.

>> More: Check out our guide on how to earn air miles

In Singapore, when we discuss airline miles, we're primarily talking about KrisFlyer miles. Their value, expressed in cents per mile (CPM), fluctuates based on factors like flight class, route, and booking demand. 

KrisFlyer miles valuation

So, how much are your KrisFlyer miles worth? 

Our research indicates that the general benchmark for KrisFlyer miles are approximately:

• 1.1 to 1.3 cents per mile for economy bookings

• Above 2.0 cents per mile for business-class bookings

• Below 1.0 cents per mile for non-flight redemptions

These figures, derived from extensive analysis of typical flight redemptions, represent realistic targets for your KrisFlyer mile usage. 

Aim for redemptions that meet or exceed these values to ensure you're getting the most from your miles.

Hotel points are another form of travel rewards, and their value is often calculated in cents per point. The value of hotel points can vary significantly depending on several factors, including the specific hotel chain, the room category, and the seasonality of the booking. The value can also fluctuate based on the hotel's location, the prevailing room rates, and the specific booking dates.

Hotel points valuations

In Singapore, popular hotel points programmes offer various benefits, including free nights, room upgrades, and lounge access. Points are earned through hotel stays, dining, and other activities such as credit card point redemptions. Here is a breakdown of their average valuations:

Hotel loyalty programme	Value per point in SGD
Hilton Honors	0.4 cents
IHG One Rewards	0.7 cents
Marriott Bonvoy	0.8 cents
World of Hyatt	2.0 cents
Accor Live Limitless	2.9 cents

It's important to remember that these valuations are estimates and can vary significantly depending on individual redemption choices and market conditions. Travellers should factor in their utilisation patterns when evaluating the value of their points. If you prioritise free nights, focus on programs where points stretch further for standard room redemptions. If room upgrades are your goal, look for programs with generous upgrade policies for elite members, and consider how often you can actually use those upgrades.

In Singapore, credit card points represent a specific pathway to accumulating KrisFlyer miles for travel. Unlike direct mile-earning cards, these cards allow you to accumulate general points that you can then convert into KrisFlyer miles.

Credit card point valuations

To assess the value of credit card points for miles, we need to look at the exchange rate at which points can be converted. Cards that directly award KrisFlyer miles per dollar spent are considered separately, as they operate on a direct earning model rather than a conversion.

Credit card rewards programme	Exchange rate (points to KrisFyer miles)
DBS Points / POSB Daily $	1:2
UOB UNI$	1:2
AMEX Membership Rewards® Points	1.8:1
OCBC$	2.5:1
Standard Chartered 360° Rewards Points	2.5:1
Citi ThankYou Points	1:0.4
HSBC Points	1:0.4

Singapore's travel rewards scene is characterised by increasing volatility – not just about fluctuating prices, but strategic shifts by airlines and hotels to manage demand and profitability. The key drivers? Dynamic pricing, loyalty programme devaluations, and the ongoing impact of digital disruption.

For the savvy Singaporean traveller, understanding these forces is critical to maximising value.

KrisFlyer miles

A shift to dynamic pricing

Singapore Airlines' strategic implementation of dynamic pricing represents a fundamental shift in how KrisFlyer miles are valued. Traditionally, award charts provided fixed mile requirements for specific routes. However, dynamic pricing ties mile redemption costs to real-time demand and fare fluctuations. This means that popular routes and peak travel periods now require significantly more miles, effectively devaluing miles during high-demand times. This strategy allows the airline to optimise revenue by capturing the highest possible value from each seat, but it introduces significant unpredictability for KrisFlyer members.

The impact of programme devaluations

Beyond dynamic pricing, KrisFlyer has also implemented subtle, yet impactful, devaluations through adjustments to award charts and earning rates. These changes, often announced with minimal fanfare, gradually erode the purchasing power of accumulated miles. For example, increased mile requirements for premium cabin redemptions or reduced mile accrual on certain fare classes contribute to a long-term decline in mile value. This trend reflects a broader industry practice of airlines seeking to control liability and manage the costs associated with their loyalty programmes.

Pandemic influence and recovery

The COVID-19 pandemic introduced a period of unprecedented volatility for KrisFlyer miles. Initially, airlines offered bonus mile promotions and relaxed redemption policies to incentivize travel. However, as travel demand rebounded, we've witnessed a recalibration of mile valuations. Airlines are now focused on balancing the influx of accumulated miles with the need to maintain profitability. This has resulted in tighter award availability and potentially higher mile requirements, signalling a return to more conservative valuation practices. In short, the pandemic provided a temporary increase in mile value, but the long-term trend is a reduction of that value.

Hotel points

Rise of online travel agencies

The proliferation of online travel agencies (OTAs) like Expedia and Booking.com has fundamentally disrupted the hotel industry for quite some time. These platforms provide consumers with unprecedented access to competitive pricing and a wide range of accommodation options. As a result, hotel chains are under immense pressure to compete on price, which indirectly impacts the value of their loyalty programs. To remain competitive, hotels often prioritise direct bookings and offer exclusive deals to their loyalty members, but it also means that the base value of hotel points is constantly being pushed downwards by the general price competition.

Evolving loyalty programmes

In response to industry challenges, most hotel chains have redefined their loyalty programmes, moving away from simple point accumulation to more personalised experiences. This includes offering enhanced benefits like room upgrades, late check-outs, and exclusive access to hotel amenities. However, these changes often come at the expense of traditional point-based rewards. Dynamic pricing has also become prevalent in hotel loyalty programmes, meaning that point redemption costs fluctuate based on demand and occupancy rates. This makes it more difficult for travellers to predict the value of their hotel points.

Pandemic impact and the near-future of hotel rewards

The pandemic severely impacted the hospitality industry, leading to significant changes in hotel point valuations. During this period, many hotels offered generous promotions and flexible redemption options to attract guests. As the industry recovers, hotel chains are adapting to new travel patterns and consumer expectations. There's a growing emphasis on personalised experiences, sustainable travel, and digital-first interactions. This shift is likely to further influence the evolution of hotel loyalty programmes, with a greater focus on providing unique and tailored rewards, meaning valuation over time will become more qualitative than quantitative.

Unlock your dream vacations with the right credit card. Maximise your KrisFlyer miles and travel perks with these best travel credit cards in Singapore.

• Best flat-rate rewards: Citi Cash Back+ Card

• Best for flexibility and bonuses: UOB PRVI Miles Visa Card

• Best portal benefits: DBS Altitude Visa Signature Card

• Best cashback on travel bookings: Standard Chartered Simply Cash Credit Card

• Best for direct travel bookings: American Express Singapore Airlines KrisFlyer Ascend Credit Card

• Best for business travellers: Citi Prestige Card