Best way to redeem/convert HDFC Infinia points?

[kautilya]

Hey everyone

So I have a bunch of points on my HDFC Infinia (despite my best intentions). I'm planning to go on a holiday in SE Asia in next few months. My primary drivers are Citi Prestige & Amex Platinum - both of which allow me to easily convert points to Krisflyer Miles. Singapore Air is my preferred carrier for trips abroad & so I was thinking of flying with them for my upcoming vacation.

Now the issue is HDFC doesn't seem to have any option to transfer to Krisflyer - atleast I don't see it under Miles Transfer section of their Smart Buy portal. A good chunk of my HDFC points are going to expire in next 2-3 months (because well, HDFC still lives in stone age & has things like points expiry on premium cards).

So I'm looking for advice/suggestions on best way of redeeming my HDFC points, hopefully something that will help with my upcoming vacation. If there's a way to transfer the points to Krisflyer then that would be best.

 

[drsel]

This is the best usage/ best case example showing the maximum value of Infinia points---

Using Infinia, you buy air tickets on Smartbuy for 112,500 the maximum allowed to get max. 15000 bonus points per day/per month
you will get 3750 basic points plus 15000 bonus points on Infinia.

18750 points can be used for a second flight ticket of 26786 (max 70% can be paid with points).
Real cash spend is 112500 + 8036 = 120536
Value received is 112500 + 26786 = 139286.

120536÷139286=86.54%
Hence 13.46% return.
Or you could consider it as 15.56% return on real cash spend of 120536.

Kindly note this is an extreme best case scenario.
in a real life situation you will not get air tickets priced like this!

If 70% points allowed to be used is reduced further to 60% or 50% or whatever, the returns will also fall proportionally.
Now you know the formula to do the calculation!

This formula has been worked out by the top genius investment bankers of HDFC Bank.
Investment bankers are the highest paid professionals in the entire world!

 

[msk1437]

If 70% points allowed to be used is reduced further to 60% or 50% or whatever, the returns will also fall proportionally.
Now you know the formula to do the calculation!

This formula has been worked out by the top genius investment bankers of HDFC Bank.
Investment bankers are the highest paid professionals in the entire world!

Well
If we do it your way,

Let's say we maxout our reward points every month and earn 18750 rps.

In the subsequent month buy a ticket worth 112500+18750 = 131250 and redeem 18750 rps

Real cash spent is 112500
Value received is 131250

112500/131250 = 85.71%
Hence 14.28% return
Or you could consider it as 16.66% return on real cash spend of 112500.

I'm not sure why you're adding up 26786 spends over the smartbuy capping which wouldn't then earn bonus rps.

 

[drsel]

Well
If we do it your way,

Let's say we maxout our reward points every month and earn 18750 rps.

In the subsequent month buy a ticket worth 112500+18750 = 131250 and redeem 18750 rps

Real cash spent is 112500
Value received is 131250

112500/131250 = 85.71%
Hence 14.28% return
Or you could consider it as 16.66% return on real cash spend of 112500.

I'm not sure why you're adding up 26786 spends over the smartbuy capping which wouldn't then earn bonus rps.

You could do it this way but then you are not maximising the 70% points allowed to be used for buying air tickets on Smartbuy.
In your example the points used are only 14.28% of the total airfare, well below the 70% allowed.

Using a lower percentage of points and spending more real cash would be more profitable for HDFC, because they get the maximum commission of 16% from the Airlines, due to their huge volumes of flight bookings.

My example entails the use of 70% points, the maximum allowed for your second flight booking

 

[drsel]

Well
If we do it your way,

Let's say we maxout our reward points every month and earn 18750 rps.

In the subsequent month buy a ticket worth 112500+18750 = 131250 and redeem 18750 rps

Real cash spent is 112500
Value received is 131250

112500/131250 = 85.71%
Hence 14.28% return
Or you could consider it as 16.66% return on real cash spend of 112500.

I'm not sure why you're adding up 26786 spends over the smartbuy capping which wouldn't then earn bonus rps.

You have not considered the return % on the initial 112500 spend to get the 18750 points.
So your total spend will be 225000 , returns on 225000 will be much less.

 

[msk1437]

You could do it this way but then you are not maximising the 70% points allowed to be used for buying air tickets on Smartbuy.
In your example the points used are only 14.28% of the total airfare, well below the 70% allowed.

Using a lower percentage of points and spending more real cash would be more profitable for HDFC, because they get the maximum commission of 16% from the Airlines, due to their huge volumes of flight bookings.

My example entails the use of 70% points, the maximum allowed for your second flight booking

Your example outlines spends of 1 lakh as well right? You're spending all that directly and go on to maxout 70% on a lesser ticket and you're not even getting points there cause you're maxed out already.

 

[drsel]

Your example outlines spends of 1 lakh as well right? You're spending all that directly and go on to maxout 70% on a lesser ticket and you're not even getting points there cause you're maxed out already.

You would get points on the 8036 real cash spend on the second ticket (bought with 70% points and 8036 real cash) if you buy it in the next month.

 

[msk1437]

You have not considered the return % on the initial 112500 spend to get the 18750 points.
So your total spend will be 225000 , returns on 225000 will be much less.

Bro
Consider doing it for a long term!
It'd eventually limit to this number... I just rephrased it so It'd match your example

 

[msk1437]

You could get points on the second ticket if you book it in the next month.

Exactly what I was saying..

 

[msk1437]

Exactly what I was saying..

If you consider those points, you'd eventually end up with this itself.

 

[drsel]

If you consider those points, you'd eventually end up with this itself.

I have not considered the points received on the 8036 real cash spend on the 2nd air ticket.
That would increase the return a bit.

Anyway all these calculations are redundant when you have Magnus Burgundy which gives a 24% return on all air tickets on Traveledge .
If you buy one ticket at a time there is no markup on the normal airfare.
And of course there is no convenience fee unlike HDFC Smartbuy.
So it is far superior to HDFC Infinia for buying air tickets.

But then you must realise that the maximum value of HDFC infinia is realised only when you use its points to buy air tickets on Smartbuy (for 15.56% return or 13.46% discount on air tickets).
Transferring Infinia points to hotel and airline partners gives lower returns and buying vouchers using points is even worse.

Also the maximum points you can earn by buying vouchers, air tickets, etc on Smartbuy is only 3750+15000 per month.
The maximum spends to get these points would be 112500 per month