What is the current value of your points and miles, given the fluctuation of both airfare and currency this year?

This year has been strange for currencies in general. All kinds of prices have gone through the roof because of rising inflation (including travel prices). At the same time, the euro and the British pound are losing value compared to the U.S. dollar. This makes a trip to Europe more affordable.

How are the currencies of airline and hotel loyalty programmes, known as points and miles, affected by all of these changing prices?

To answer this question, NerdWallet looked at the numbers. Our annual study of how much airline miles and hotel points are worth has finally come out, and it has some interesting things to say.

To get our estimates, we collect real-world data on thousands of flights and hotel stays and compare cash prices and award prices to find the baseline value of each loyalty program’s points.

Here’s how the value of miles and points has changed since last year and what you should do to your travel rewards strategy as a result.

Most airline miles are worth more than they cost. The good news is that almost all points and miles are worth more now than they were last year. This may be because inflation has made the cash prices of flights and hotel nights go up.

Across the board, airline miles are now worth an extra 0.1 cent to 0.3 cents. In our last analysis, a United Airlines MileagePlus mile was worth about 1 cent, so 50,000 miles should have been enough for a free flight worth about $500. If you didn’t use those 50,000 miles last year, each one is now worth 1.2 cents. That means you can probably use them to buy a flight today that costs about $600.

Keep in mind, though, that prices have gone up a lot because of inflation. According to the most recent data from the Consumer Price Index, airfare prices in August were 33% higher than they were a year ago. On the other hand, the average value of airline miles has only gone up 8.7% since last year. So, even though your miles are worth more than they were last year, you might still have to pay more miles for a flight than you did last year because flights are probably more expensive.

When it comes to hotel points, one brand stands out. Inflation caused hotel points to go up in the same way that airline points did. But one big jump stands out: Hyatt in the World

Hyatt’s high value redemptions have made it a favourite among travellers for a long time, and it has always been worth more than other hotel loyalty programmes. In this year with high inflation, its fixed award chart has made it even more valuable.

This year, Hyatt’s value went from 1.9 cents per point in 2021 to 2.8 cents per point now, a jump of almost a whole cent. That means that its points are worth four times as much as those of competitors like Marriott Bonvoy, Hilton Honors, and IHG One Rewards (0.7 cents).

This difference is likely because Hyatt is the only hotel loyalty programme with a fixed award chart like the one above. In the award chart, there’s a cap on how many points a night at a certain property can cost, even if the cash rate is much higher. There are Hyatt sweet spots in those places.