A hotel night that costs 400 dollars in cash might cost 30,000 points, while the same points in a cheaper city would only save you 120 dollars. That gap is the whole secret of hotel points: they are worth the most where hotels are expensive. If you understand that, you can plan your redemptions around the cities where points save you the most money.

Hotel award prices are often based on categories or fixed charts, which means the points price does not rise as fast as the cash price. In cities like New York, London, Paris, Tokyo and Singapore, where a decent hotel easily costs several hundred dollars a night, a points redemption can save you a fortune. In smaller cities where rooms cost 80 dollars, the same points save you far less.

The practical rule is to pay cash where rooms are cheap and use points where rooms are expensive. Before any trip, compare the cash price and the points price for the same room and calculate the value per point. If you are getting 1 cent or more per point, it is usually a good redemption. If you are getting less than half a cent, save your points for a pricier destination.

The major hotel programs, Marriott Bonvoy, Hilton Honors, Hyatt, IHG and Accor, all work differently, and the best one for you depends on where you travel. Hyatt is often praised for the best value per point, with top hotels costing relatively few points. Hilton and Marriott have enormous global coverage, which matters if you travel to many different places.

Credit card points that transfer to hotel programs add flexibility, because you can move them to whichever program has the best redemption for your trip. Some cards also include a free anniversary night each year, which is often enough for a night at a mid-range hotel. Pick one primary hotel program, focus your stays and spending there to earn status, and use transferable points to top up when needed.

Several tricks make hotel points go further. Many programs offer a fifth night free when you book four nights on points, which is effectively a 20 percent discount on longer stays. Booking off-peak dates can cut the points price significantly, since many programs now use dynamic pricing that follows demand.

Also check whether the program charges resort fees on award stays, because those fees can add up, and look for hotels that include breakfast for status members. Finally, book early: the best hotels in popular cities release a limited number of award rooms, and they disappear months ahead. A little planning turns your points into nights that would otherwise cost a small fortune.

Another strategy worth knowing is to use points for the most expensive nights of a trip and pay cash for the cheaper ones. If a five-night stay includes a weekend when prices spike, redeem points for those two expensive nights and pay cash for the three cheaper weeknights. This maximises the value of every point, because you are using them exactly where the cash price is highest. The same logic applies to splitting a stay between two hotels: use points at the luxury property for a night or two, then move to a cheaper hotel for the rest of the trip. Mixing points and cash in this way is more work than booking one hotel for the whole stay, but it often saves hundreds of dollars on the same holiday.

Hotel points shine brightest in expensive cities, where a single redemption can save hundreds of dollars. Pay cash where rooms are cheap, use points where they are dear, pick one program to focus on, and book early for the best rooms.