FlyerTalk Forums - View Single Post - Fidelity 2% cashback Amex vs other rewards cards
Old Jun 29, 2013, 7:21 pm
  #24  
CFFrost
 
Join Date: Mar 2012
Location: SAN
Posts: 1,396
Originally Posted by levander
. . .
If it's the case where you can get up to 10 pennies a UR point, why are people using 2 pennies a point as the common valuation for those things?
. . .
People debate endlessly regarding how to value points. 2 cent / per is a common valuation because it takes into account a reasonable redemption - even though it is possible to get much greater value for you points. For example, even WN gets you almost .02/per.

One big sticking point with people is that in order to get to the .10/per valuation you need to use full fare price as the valuation of your redemption. Most people, however, would not be willing to pay full price for a first class seat - so that doesn't really make sense, does it?

Lots more debate about this elsewhere, but that's just some quick thoughts.
CFFrost is offline