What “Points” and “Miles” really mean
Points and miles are loyalty currencies. Airlines, hotels, and banks issue them to reward the repeat customers and encourage spending or bookings.
Airline miles are specific to that airline. Despite the name, “miles” are not always based on distance flown. Think of miles simply as a term for reward points. In fact, most airlines don't even call their currency “miles” anymore. Example: Air India uses the terminology “Maharaja Points” while IndiGo uses “BluChips”.
Similar to airlines, popular hotel chains like Marriott and Hilton issue hotel points. These points can be used to book hotel stays. Most hotel chains also provide an option to pay partially using points and the remainder via cash or card.
Bank points are issued directly by banks. These are incredibly powerful because, in most cases, they can be transferred to airline miles or hotel points subject to certain terms and conditions.
Core terms you must know
- Program: The loyalty scheme of an airline, hotel, or bank.
- Award Ticket: An airline ticket booked using points or miles.
- Award Night: A hotel stay booked using points.
- Transfer Partner: An airline or hotel program into which you can move your bank points.
- Award Availability: The inventory (seats/rooms) a program releases for redemption using points.
- Cabin: The class of service (Economy, Business, First).
- Sweet Spot: A specific redemption that offers exceptional value compared to the cash price.
- Status/Tier: Your loyalty level within a given program (e.g., Silver, Gold, Platinum).
- Revenue Booking: A standard travel booking paid for out-of-pocket using cash or card.
The 3 buckets: Airline, Hotel, and Bank (Transferable) Points
Airline Miles: Usually best for flights (especially long-haul and premium cabins), but can also be used for upgrades, seat fees, or non-flight redemptions (though these often offer poor value).
Hotel Points: Usually best for hotel nights. The value varies significantly based on the property, season, and the program’s pricing model.
Bank (Transferable) Points: Points earned within a bank's rewards ecosystem. These can often be redeemed through a travel portal (like “pay with points”) or transferred to airline/hotel partners. These are the most powerful currency because they offer flexibility.
What is the value of 1 Point or Mile?
1 Point or Mile is not equal to ₹1. The value varies from program to program and redemption to redemption.
Some programs provide upfront pricing or a fixed value for each point/mile. Example: Accor Live Limitless, where 2,000 Accor Points always equals €40.
Some programs use fixed redemption charts (points required) while the cash price is dynamic. Example: Wyndham Rewards divides its hotels into three tiers, costing 7,500, 15,000, and 30,000 points respectively, which remain fixed. However, a room costing 30,000 points might be priced at ₹40,000, ₹25,000, or some other value in cash, depending on the day.
Other programs utilize dynamic pricing for both points and cash, where the redemption cost is determined by supply and demand.