valuation

Redemption Rate

Effective Redemption Rate

Definition

Same as CPP, the cents-per-point value you realize on a specific redemption.

Why it matters

Strong redemption rates: World of Hyatt at top properties (3-5¢/pt), Aeroplan Lufthansa First (4¢+/pt), Singapore Suites (~6¢/pt). Weak rates: cash-back style redemptions (1¢/pt or less) and travel-portal bookings (typically 1.25-1.5¢/pt).

Related terms in valuation

CPP

The cash value you get for each point spent on a redemption, expressed in cents. Example: 30,000 points for a $600 hotel night = 2¢/pt CPP.

Off-Peak

Some programs (Iberia, Avianca, World of Hyatt) charge fewer points for awards on dates outside peak travel demand.

Award Chart

A published table of how many points an airline charges for various routes and cabins. Originally fixed (legacy programs); now mostly replaced with dynamic or region-based charts.