Newsstand - 1,000,000 Miles worth $100,000 ??

In the August issue of Inside Flyer the article "Mileage Runs" quotes the value of one million miles as $100,000 ( page 24, third column, second paragraph). I wish !! I suppose miles are worth something different to each person. I calculated my million ( when they post !) will get my family 33 RT tickets to the Caribbean from New York. At an average cost of $750 each, this values at $24,750. How about all you other million milers ? What are they worth to you ?

Well a First Class ticket from LAX to Paris can run you upwards of $12,000. A million miles could buy you 10 of 'em. So I guess it certainly could be worth that.

See http://www.flyertalk.com/forum/Forum1/HTML/003114.html

Shutzee, yes a lot of current discussion on thread above. http://www.flyertalk.com/forum/smile.gif

To paraphrase Bill Clinton and not to repeat too much of that thread here, it depends on what the meaning of "worth" is. You can get things for a megamile that would, if paid for, cost $100,000 or more. However, most people who use those awards would never fly LAX-CDG in first, or whatever, if they had to pay.

Suppose I offer you a free car, any car. You buy a turbo Bentley for $300,000. Was my offer worth $300,000? In one sense, yes. In another, if you had to buy a car, you'd have settled for a Toyota Camry. So, you're only $25,000 better off because I bought you a car. In that sense my offer was only worth $25K. Or, you were going to get a Camry, but you would have paid $50K for a Bentley, so it's worth that.

I come down on a middle ground where a million miles are worth about $20,000.

I'm a buyer. Where do I email my credit card to? http://www.flyertalk.com/forum/smile.gif

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~ Glen ~

I probably have over a million miles on a couple of nice airlines (and many many hundreds of thousands on one or two others). Also have earned a few million points in hotel programs too. Go ahead, twist my arm, and I am certain we can come up with a proper and equitable donation or exchange of one of my rare t-shirts or paintings (or even two), and I will throw in a million ff miles or so as a free bonus. I suggest we do this in the Cayman Islands. Other possibilities are on an airplane or ship over/on International Waters.

"Use you inventive imagination to get upgraded transportation" is my nice new motto.

The first one who comes up with a $100,000 donation or exchange in nice USA tens, twenties or fifties gets their pick of t-shirts, paintings etc (and the nice bonus too).

I am taking a deserved early retirement next month, and this t-shirt or painting donation or exchange will nicely and hopefully ease any overt immediate financial pain or strain. I will be anxiously watching my email address box as it fills up with names. Good luck to all!

Most people use ff miles for domestic coach tickets. One million miles will buy you 40 of these @25k each. If you value each ticket at $400 (that's being generous) then one million miles is worth $16,000.

if you do that, imho it's a waste. ff miles are best spent on things that are out of reach to you. if flying in general is out of your means, then use them for coach tickets. but if you can afford to fly, then why not experience the best service possible? up unitl this 1w continents promotion would i have ever spent $5000 on an airline ticket. but for 26 segments, it was a deal i couldn't pass up. and as for all the miles i will collect for the difference programs, you bet it will be for upgrades, or free tickets in higher classes of service. the only time i use them for coach services is in an emergency or cshort notice time frame where full fare coach is the only option, which in essence, makes it not an option at all.

Paul:

FWIW, according to recent comments by Randy, which I posted in another related thread, most FF's use their miles for upgrades! http://www.flyertalk.com/forum/smile.gif
http://www.flyertalk.com/forum/Forum1/HTML/003114.html

Doc

I agree that very frequent flyers use mileage for upgrades, but there are a lot of people out there that don't fly much and save for the free coach ticket. Granted, these people aren't the ones that have a million miles, but I stand on my estimate of one million miles is worth about $16,000.

Using miles for upgrades would mean a greater value, but you have to assume that the flyer using the miles would actually pay the biz class fare if he didn't have the miles to spend. I can buy an economy upgradable fare on NW from ORD-BKK for $863.80 and upgrade for 50k. A biz class fare is $3,457.80. Therefore in this case, my 50k is worth $2,594 and using 1 million miles this way would give me a value of $51,880.

Even so, most people wouldn't pay the difference, so the $51,880 figure is high.
Paul

[This message has been edited by Paul3456 (edited 08-21-2000).]

Yes, Doc's thread he mentions really gets into the "how much is a mile worth" argument. I had a view, as did MAAAAAAANNY others!

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~ Glen ~

Paul-

Does the price change if you won't buy the item?

Possibly in the end - but NOT necessarily! http://www.flyertalk.com/forum/smile.gif

BTW- As I said initially, the miles are worth whatever it is that they are worth to you! http://www.flyertalk.com/forum/wink.gif

1.000.000 LP miles would have been enough for 13 RT business class tickets from Stockholm via Amsterdam to Sydney. One ticket would cost around 3700$.

To us UA flyers 1 million would get 8 first class tickets to Miami worth $11.000 Australian dollars so thats about $60000US plus a business class to Bali worth about $1800us. Thats how Id use it!

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Worth to IRS: $.02 cents a mile $20,000
However, IRS is probably overvaluing since they like to take our money! Most people aim to get $.01-$.02 cents a mile of value out of their miles, IMHO.