160,000 AA miles for $2,950. Is this a good deal or not?
Apr 19, 2015, 12:47 pm
#46
Join Date: Feb 2013
Location: San Antonio
Programs: AS MVP
Posts: 2,276
Thanks all for the help. I was comparing aadvantage to united to capital one cc to citbank cc, and it looks like my best option is to physically fly the miles to get elite status on AA.
If I understand the game, if I fly the 17k mile round trip to HKG on AA I would get the 17k physical miles toward Gold Elite, whereas United would only give me 5 x the $800.00 fare which works out to only 4000 miles.
If I understand the game, if I fly the 17k mile round trip to HKG on AA I would get the 17k physical miles toward Gold Elite, whereas United would only give me 5 x the $800.00 fare which works out to only 4000 miles.
http://www.aa.com/i18n/AAdvantage/ea...s/american.jsp
http://www.united.com/web/en-US/cont...r/qualify.aspx
and these threads in the respective airline forums for questions and explanations:
http://www.flyertalk.com/forum/unite...leageplus-681/
http://www.flyertalk.com/forum/ameri...e-program-733/
Your understanding is entirely incorrect (but makes sense if you didn't know better).
Apr 20, 2015, 7:48 pm
#47
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
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May 4, 2015, 8:28 am
#48
FlyerTalk Evangelist
Join Date: May 2000
Location: أمريكا
Posts: 26,761
I don't care if you saved it or not, the value of something in a capital economy is the cash price. First class is 18k to buy the ticket, so that is set by the free market. Just because someone can sign up for a few cc's and buy some miles doesn't mean the value is less, it just means they found a way to arbitrage the value vs. cash paid.
In any event, retail or market prices and value to the buyer are two different things; we're talking about individual purchasing decisions.
The point, to me, is that when making decisions about using miles you need a way to determine whether you're getting a good value (for yourself) for the miles. As there's no danger of me buying full fare F tickets with cash, that's not a good starting point to determine if something is a good use of miles.
May 4, 2015, 1:08 pm
#49
Join Date: Feb 2010
Location: ORD
Programs: US Air, UA BA LH AI DELTA MARRIOTT CHOICE SGP
Posts: 9,883
Is the value the highest retail price, or the lowest available purchase price (either through discounted cash tickets or miles)? Few people are actually spending $18k on those tickets.
In any event, retail or market prices and value to the buyer are two different things; we're talking about individual purchasing decisions.
The point, to me, is that when making decisions about using miles you need a way to determine whether you're getting a good value (for yourself) for the miles. As there's no danger of me buying full fare F tickets with cash, that's not a good starting point to determine if something is a good use of miles.
In any event, retail or market prices and value to the buyer are two different things; we're talking about individual purchasing decisions.
The point, to me, is that when making decisions about using miles you need a way to determine whether you're getting a good value (for yourself) for the miles. As there's no danger of me buying full fare F tickets with cash, that's not a good starting point to determine if something is a good use of miles.
So I take $4000 vs miles required. ( 135,000) , multiply by rounded off two cents a mile. Usually the miles win.......especially when US Air used to have a 100% bonus on miles
May 10, 2015, 9:39 pm
#51
Join Date: Sep 2014
Location: USA/Canada
Programs: UA Premier 1K, AC SE, Delta Platinum Medallion, Marriott Titanium
Posts: 448
May 11, 2015, 2:12 pm
#52
FlyerTalk Evangelist
Join Date: Dec 2003
Location: Not here; there!
Programs: AA Lifetime Gold
Posts: 29,531
Wirelessly posted (BlackBerry: BlackBerry8530/5.0.0.1030 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/417)
The current offer -- which ends tonight -- is 100,000 miles for $1,917.50 (a 35% discount).
The current offer -- which ends tonight -- is 100,000 miles for $1,917.50 (a 35% discount).
Last edited by guv1976; May 11, 2015 at 2:14 pm
May 11, 2015, 2:18 pm
#53
FlyerTalk Evangelist
Join Date: Dec 2003
Location: Not here; there!
Programs: AA Lifetime Gold
Posts: 29,531
Wirelessly posted (BlackBerry: BlackBerry8530/5.0.0.1030 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/417)
Note that taxes and the processing fee are not included in that quote of $1,917.50. Total for 100,000 miles should come to just under $2,100, all inclusive.
Note that taxes and the processing fee are not included in that quote of $1,917.50. Total for 100,000 miles should come to just under $2,100, all inclusive.
May 16, 2015, 3:12 am
#54
Join Date: Sep 2005
Location: SIN
Programs: SQ, UA, Delta, BMI(RIP), Marriott Lifetime Titanium, Hilton Diamond (Thanks Amex) Hyatt Discov
Posts: 1,942
For 150,000 miles - 100,000 plus 50,000 bonus
Cost $2,950.00 USD
Federal excise tax $221.25 USD
Processing charge $30.00 USD
Total charges $3,201.25 USD
= 2.134 cents per mile
If fewer miles purchased, the bonus % is lower
May 16, 2015, 10:15 am
#55
Join Date: Jun 2008
Location: YVR
Programs: Aeroplan, AAdvantage
Posts: 2,100
This is the third sales AA is having since April 1. The first was 160K for the normal price of 100K, that's a bit more than 39% (39.39394%) discount, then a brief sale of 100K with 35% discount, now you can get 150K for the price of 100K, that's a 33.333% discount. Mid June I guess we will see a 100K with 30% discount offer...
Percentages do not tell the whole story, however: the investment necessary was the smallest for the middle offer.
Percentages do not tell the whole story, however: the investment necessary was the smallest for the middle offer.