What are Marriott Bonvoy points worth?

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Last year (April 2020), I evaluated Marriott point values using data I had collected for the following posts: What are Marriott 35K certificates worth? and What are Marriott 50K certificates worth?  Using data from those posts, I found an average value of 0.68 cents per point.  This was only slightly lower than our old 0.72 cents valuation.  And due to significant selection bias in the newer results (I only looked at category 5, 6, and 7 hotels for example), I decided to pick a mid-point between old and new for valuing Marriott points: 0.70 cents per point.

Now, over a year later, it was time to redo the analysis.  How much are Marriott points worth now?

In order to determine the value of Marriott points, I collected real-world cash prices and point prices.  As I’ve done previously in analyses of other hotel loyalty programs, I examined 7 major hotel markets in the U.S. (Chicago, Denver, Houston, Los Angeles, Miami, New York City, and Seattle). Within each market, I identified the first three search results with a guest rating of 4.1 or better, and I recorded both cash and award prices for three dates each: a weekday, a weekend, and a holiday weekend.

  • Why U.S. only? U.S. consumers are known to spend most of their points and miles on domestic travel.  Since the majority of this blog’s audience resides in the U.S. we opted for a U.S. centric view of point values.
  • Why Guest Ratings? The goal wasn’t to find the 3 best Marriott hotels in each market. Instead, the goal was to find the 3 Marriott bookable hotels that are most popular.  Which ones are people really likely to book?  By using a combination of Marriott’s default sorting (by distance) and by picking only highly rated hotels, I think it’s reasonable to assume that many Marriott members would pick these hotels.
  • Which paid rates were selected?  I always picked the best refundable paid rate shown on Marriott’s website, but without applying any discounts like AAA, military, government, etc.  In all cases, I selected Marriott’s “Member Rate Flexible”.
  • What about point earnings on paid rates? An ideal analysis may include the value of point earnings on paid rates.  For simplicity, this was not considered in this analysis.  This decision has the effect of over-valuing Marriott points.
  • What about taxes and fees? For simplicity, taxes, resort fees, and other fees are not included in this analysis.  This decision has the effect of under-valuing Marriott points.
  • Which specific dates did I use?  
    • Weekday: Wednesday September 15th.
    • Weekend Day: Friday October 15th.
    • Holiday Weekend Day: Friday July 2nd.

Results

May 17th 2021 Analysis
Point Value (Median) 0.62 cents
Point Value (Mean) 0.67 cents
Cash Price (Median) $246
Cash Price (Mean) $282
Point Price (Median) 40,000
Point Price (Mean) 44,802
Minimum Point Value 0.30 cents
Maximum Point Value 1.67 cents

The median observed point value was 0.62 cents per point.  This means that half of the observed results offered equal or better point value and half offered equal or worse value.  Another way to think about it is that without trying to cherry pick good awards, you have a 50/50 chance of getting 0.62 cents or better value from your Marriott points when booking free night awards.

Pick your own RRV May 12th 2021 Analysis
50th Percentile (Median) 0.62 cents
60th Percentile 0.66 cents
70th Percentile 0.77 cents
80th Percentile 0.82 cents
90th Percentile 0.95 cents

When we publish point RRVs, we conservatively pick the middle value, or the 50th percentile.  The idea is that just by randomly picking hotels to use your points, you have a 50/50 chance of getting this value or better.  But what if you cherry-pick awards?  Many people prefer to hold onto their points until they find good value uses for them.  If that’s you, then you may want to use the table above to pick your own RRV.  For example, if you think that you’ll hold out for the best 10% value awards, then pick the 90th Percentile.  If you cherry-pick a bit, but not that much, you might want to use the 70th Percentile (for example).

To me, this analysis shows that those who cherry-pick good value awards can count on getting around 0.80 cents per point value, or better.  And, while more than 1 cent per point value is possible, I wouldn’t count on it.

New Reasonable Redemption Value

Our Reasonable Redemption Value (RRV) for Marriott points was previously set to 0.70 cents per point.  RRV’s are intended to be the point at which it is reasonable to get that much value or better for your points.  Therefore, I believe that the median observed value for is a good choice for our RRV…

Reasonable Redemption Value for Marriott: 0.62 cents per point

Hotel RRV methodology

A number of people have argued that I should include taxes in the hotel rates used for analyses like this one because leaving out taxes means undervaluing points (since free night awards do not incur most taxes).  However, there are many factors besides taxes that are equally important and also, for the sake of simplicity, are not included in my analyses.  My hope is that these factors roughly balance each other out…

Factors that cause us to undervalue points

  • We do not include hotel taxes in our analyses.  Most taxes are charged on paid stays but not award stays.
  • With hotel programs that waive resort fees on award stays (Hilton, Hyatt, Wyndham), we do not include resort fees in our analyses.
  • With hotel programs that offer 4th Night Free Awards (IHG, with some credit cards), or 5th Night Free Awards (Hilton & Marriott), or award discounts (Wyndham), we do not consider the point savings in our analyses.
  • With hotel programs that offer free parking on award stays to top-tier elites (Hyatt), we do not factor this in.

Factors that cause us to overvalue points

  • We do not use discount rates (other than member rates) in our analyses.  In real-life, many people book hotels cheaper (and sometimes far cheaper) by using AAA rates, government & military rates, senior rates, etc.
  • We do not use hotel promotional rates.  Often, individual hotels have deals such as “Stay 2 Nights, Get 1 Night Free” which can greatly reduce the cost of a stay.
  • We do not use prepaid rates in our analyses.  Sometimes these rates are significantly lower than refundable rates.
  • We do not factor in rebates which can be earned from booking hotels through shopping portals.
  • We do not factor in points earned from paid stays.  These points can be thought of as a rebate on paid stays only.
  • We do not factor in extra points earned on paid stays for those with elite status.
  • We do not factor in hotel loyalty program promotions: Most promotions, but not all, only offer incentives for paid stays.  We often see promos offering bonus points, double or triple points, free night awards, etc.

Given the factors listed above, I think that including taxes in our analyses would lead us to over-value points.

Conclusion

Based on the latest analysis, I’ve decreased our Marriott RRV from 0.70 to 0.62 cents per point.  The idea is that you have equal chance of getting that much value or more from your award stays.

This post’s percentile results show that it’s reasonable to expect to get 0.80 cents per point or better if you cherry-pick good-value awards.  On the higher end, even though this analysis saw values as high as 1.67, I wouldn’t count on getting more than 1 cent per point value.

For a complete list of Reasonable Redemption Values (and links to posts like this one), see: Reasonable Redemption Values (RRVs).

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