Unwanted Changes Ahead

Unwanted Changes Ahead

If you hold a Citi Strata Premier card and are considering transferring your ThankYou points to hotel programs, brace yourself for some unwelcome news. Citi has just announced a reduction in the value of transferring ThankYou points to Choice Privileges and I Prefer, effective April 19, 2026.

This announcement was made via a program update email, but essentially, it means you will receive fewer hotel points for the same amount of Citi points. Your points will be worth less in the future compared to what they are now.

Details of the Change

Currently, Citi offers a relatively attractive transfer rate to two hotel programs, which is noteworthy since redeeming hotel points can often be quite pricey. Here are the transfer rates until April 18, 2026:

• 1,000 ThankYou points → 2,000 Choice Privileges® points
• 1,000 ThankYou points → 4,000 I Prefer points

However, starting April 19, this rate will take a significant hit:

• 1,000 ThankYou points → 1,500 Choice Privileges® points
• 1,000 ThankYou points → 2,000 I Prefer points

This reduction amounts to a 25% cut for transfers to Choice and a staggering 50% for I Prefer. There’s no additional flexibility, no new partners—just a decrease in the value of your ThankYou points.

Is Transferring Points to Hotels Worth It?

I’ve always believed that converting points to hotel programs is rarely the most efficient way to use them. However, in certain cases, it can still make sense. Personally, I think using between 80,000 to 100,000 points for a business class flight is a reasonable choice, as it can cost upwards of $3,000.

That said, hotel prices have been on the rise since the pandemic. For some, this is how they choose to travel or indulge. Choice points can be incredibly valuable in certain markets: high-end resorts in Scandinavia and Japan; European hotels during peak season that can charge $500 or more in the summer; some independent hotels that don’t implement dynamic pricing like Hilton or Marriott.

Until now, the 2:1 transfer rate to Choice has made this exchange appealing. Reducing it to 1.5:1 makes it less attractive, especially when competitors like Chase and Amex haven’t devalued hotel point transfers as significantly.

The Issue of Point Devaluation

Point devaluation is becoming a common trend. We’ve seen it happen with hotel and airline programs, and now credit cards are starting to reduce the value of their rewards points as well. When too many points flood the market, banks must lower their value to mitigate financial risks.

Ultimately, this move aligns with industry trends, as banks continuously pull back on the generosity of rewards programs under the guise of “adjustments” rather than clear announcements. We’ve witnessed this happen repeatedly, with airlines often inflating award charts and offering fewer points.

What You Should Do Right Now

If you plan to transfer your ThankYou points to Choice Privileges or I Prefer, my advice is to do it before April 18, 2026. If you don’t plan to use them right away, proceed with caution. Hotel programs are notorious for cutting their value, and transferring points recklessly is rarely a smart move.

However, if you are looking to redeem soon, especially with Choice, locking in the current 2:1 rate could still yield good value. Remember, points are not a savings account; they are a form of currency that continually depreciates over time. For Citi cardholders, this serves as a reminder that flexibility is truly the value of transferable points.