Infinite Journeys offering double rewards on KrisFlyer/Golden Circle Point conversions

Has it been two years already? Apparently so. Two years ago, Singapore Airlines and Shangri-La launched their Infinite Journeys partnership, which provides for mutual recognition of elite status and an opportunity to convert points between the programs.

To mark the occasion, Infinite Journeys is offering what double the usual GC points/KrisFlyer miles when you convert from one currency to the other, so long as the conversion is made by 31 October.

1 KrisFlyer mile can generally be valued at 2 Singapore cents, while 1 GC Point is worth at least 13.8 Singapore cents (1,000 GC points get you a US$100 F&B or spa voucher)

I constantly make the point at our Miles for Beginners workshops that points conversion are almost always value destructive. Trading 24 cents for 13.8 cents of value is a non-starter in the case of KrisFlyer miles to GC points, and trading 13.8 cents for 2.5 cents of value in the case of GC points to KrisFlyer miles is a transaction so bad it should be criminal.

With the above math in mind, transferring GC award points to KrisFlyer miles, even with a double miles bonus, is still a horrendous deal. However, transferring KrisFlyer miles to GC points? Now we’re on to something…

Should you trade 12 KrisFlyer miles for 2 GC points?

Recall the situation in Singapore: it’s fairly easy to earn KrisFlyer miles (credit cards, Grab, Chope, Mileslife, gas stations, phone bills, you name it), but really, really difficult to earn hotel points. Consequently, I have a healthy balance of KrisFlyer miles, but never enough hotel points.

On the surface, trading 12 KrisFlyer miles for 2 GC points already nets me a 15% value gain overall (24 cents for 27.6 cents). But remember our 13.8 cents per GC point is based on redemptions for F&B vouchers. What about hotel stays?

Here’s Shangri-la’s award redemption chart. Redemption rates range from 1,000 points per night to 20,000 points per night for a standard room. For redemptions made by 30 November 2018 and consumed by 31 January 2019, you can enjoy 25% off the points for a standard room, 30% off for a Club Room, and 40% off an Executive room.

What does that mean? In so many words…

Looking at the data in this way gives me a bit more perspective. As nice as the Maldives may be, I’d struggle to part with 90,000 KrisFlyer miles for a night at the Shangri-La Villingili Resort & Spa (prepaid rates from US$1.2K) , much less for the Shangri-La in Paris or London.

Even at the mid-range properties, I’d find it hard to justify spending 15,750 miles on the Hotel Jen in Tanglin or Orchardgateway, which can regularly be booked for S$220-250 on a non-refundable rate.

At the lower end, 750 points per night for properties like Hotel Jen Penang may seem like a steal, until you remember that revenue rates hover around S$100- so trading 4,500 miles for that is a marginal improvement.

When I first read the promotional eDM, the prospect of combining a double points conversion with 25% off redemptions got me really excited. Unfortunately, the data doesn’t seem to support the idea that this presents some amazing hotel redemption opportunity. There may well be some sweet spot in the above table that I’ve yet to identify (and please tell me if there is!), but I’m struggling to see it.

That leaves me with F&B vouchers- NAMI at the Shangri-La is supposed to be pretty good, and if you’re flush with miles you could do far worse than to cash them out at ~2.3 cents each on F&B vouchers. It’s certainly a lot better than KrisPay (keep in mind you will need to convert a minimum of 20,000 miles though).

Conclusion

You certainly should not be converting GC Points into KrisFlyer miles, even with this promotion. Converting KrisFlyer miles into GC Points may yield some interesting value, especially if you’ve got a batch that’s going to expire soon with no travel plans on the horizon. A nice meal out at one of the Shang’s restaurants sure beats your other options for cashing out.