Knowledge Hub · Glossary
Devaluation
A devaluation is when a loyalty program raises the number of points needed for the same reward, cutting the value of every point you hold. It can happen overnight, often with little or no warning. This is the main reason points are a currency to spend, not to hoard.
What it means in practice
Devaluations come in a few flavors. A program might publish a new award chart with higher prices, quietly inflate prices on its dynamic calendar, or remove a partner that used to offer cheap awards. The damage is the same: your balance buys less than it did the week before.
The practical defense is to earn points close to when you plan to use them and to redeem while the rate is good. A pile of points sitting idle is exposed to the next cut.
Example
A flight that cost 50,000 miles last year now prices at 70,000 miles after a chart change, so the same trip costs you 20,000 more miles for nothing extra.
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