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From gas stations to credit cards, loyalty programs continue to add new transfer partners, giving Canadians more ways to redeem their points.
But don’t mistake options for value. Some transfers shine while others flop. Spotting the difference is easier than you might think.
Understanding the value of your points
When you’re deciding whether to transfer points, start by figuring out the cents-per-point (CPP) you’re getting from each program. The basic formula is straightforward:
Cash price ÷ points required = CPP
For instance, with American Express Membership Rewards, you can get $10 off your statement balance by redeeming 1,000 points. That works out to a value of 1 cent per point.
Airline programs add an extra layer. With programs like Air Canada’s Aeroplan, you need to factor in any fees that must be paid in addition to points. In those cases, use this formula:
(Value of the redemption − surcharges) × 100 ÷ points required = CPP
So if a flight costs $500 or 25,000 Aeroplan points, plus $100 in fees, the calculation becomes:
($500 − $100) × 100 ÷ 25,000 = 1.6 cents per point
Once you know the value of your points, the next step is to look at the transfer ratio, for example, 1:1 or 1:0.75.
With those two calculations, it’s quick to see which points are a better value.
Always calculate the value before making a transfer
American Express Membership Rewards is one of the strongest points currencies, largely because of its extensive list of transfer partners, including Aeroplan, Marriott Bonvoy, Flying Blue and Hilton Honors.
Hotel and airline partners can offer excellent value, but there’s a catch: they use dynamic pricing, meaning the number of points required fluctuates with demand. A flight or hotel night during peak travel periods will likely cost more points, so the value of your redemption can vary wildly.
While some points enthusiasts chase every possible sweet spot, the average consumer doesn’t need to overthink it. The simplest approach is to compare the two redemptions you’re considering and select the one with the higher return.
For example, say you’re eyeing a two‑night stay at a Marriott property priced at $450 a night or 120,000 Marriott Bonvoy points.
Since the transfer ratio from Amex Membership Rewards to Marriott Bonvoy is 1:1.2, you’d need to move 100,000 Amex points.
However, those same 100,000 Amex points are worth $1,000 if redeemed as a statement credit. That means you’d get more value by paying cash for the stay and using your points to offset the charge.
The math changes with Marriott’s “Stay five nights on points, Pay for four” perk. Using the same nightly rate, a five‑night stay would cost 240,000 Bonvoy points but provide $2,250 in value. In that scenario, transferring 200,000 Amex points becomes a deal.
Resist the lure of promotions
Loyalty programs often roll out transfer bonuses to encourage members to redeem their points. Take RBC Avion, for example: the standard transfer rate to British Airways’ Avios is 1:1, but a couple of times a year, a 30-per-cent bonus is available, boosting the return to 1.3 Avios for every 1 Avion point.
Since Avios points are generally worth more than Avion, these promos can look like easy wins. But you should never transfer points just because a bonus is available. Only do it when you have a specific redemption in mind. Keeping your points in Avion preserves flexibility; once they’re converted to Avios, there’s no turning back.
The same principle applies even when there’s no increase in value. For instance, 1,000 Petro‑Points can get you $1 off fuel or convenience purchases at Petro‑Canada, or you can transfer those same 1,000 points to Triangle Rewards for $1 in CT Money. The value is identical, but you still shouldn’t transfer unless you’re ready to use the points because you want to keep your options open.
And while maximizing your CPP is valuable, it’s not the only factor. Sometimes, you may be just a few thousand points short of a strong redemption with a partner program.
Even if the transfer doesn’t deliver the absolute best value on paper, topping up to secure the reward you want can still put you ahead overall.
Barry Choi is a loyalty and travel expert. He was previously affiliated with American Express, Aeroplan, Marriott Bonvoy, RBC, and Petro-Canada but currently has no relationship with any of the brands mentioned.
