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Buy using miles or buy using dollars: dillema

Buy using miles or buy using dollars: dillema

Old Nov 22, 2008, 1:31 pm
  #1  
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Buy using miles or buy using dollars: dillema

I need to fly JNU-NYC.

Option one:

Cheapest sensible ticket costs $850 and change. This would earn me around 16,000 miles total, including status bonus. This would not push me to a higher tier.

Option two:

Spend anywhere between 32k and 40k for an award ticket on the same flight in economy.


Argh... Which one do I do?
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Old Nov 22, 2008, 1:34 pm
  #2  
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As this appears better suited to our MilesBuzz forum, let me move it there for added discussion. Ocn Vw 1K, Moderator, TravelBuzz.
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Old Nov 22, 2008, 1:50 pm
  #3  
 
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If you use miles, you get 2.65 cents value out of each mile (assuming 32k spent and that ticket would have cost $850). That's a pretty decent deal IMHO.
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Old Nov 23, 2008, 3:19 am
  #4  
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I say if you have the miles, use 'em. $850 is $850. That's an entire year's season ski pass at some ski resorts! 32-40k miles is a couple of AA citibank sign up promos and a 1-2 point hit to your credit report at worst.

If you do not have enough miles, some friend or family member can book it for you with theirs and you bring them an Ididerod sled trophy for helping you out

MM
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Old Nov 23, 2008, 5:07 am
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If you could find a cheap way to get to SEA, then of course your options would be in the $500+ range around the holidays.
The $850.00 price is semi-borderline.

Using a $0.02/mile spend - $0.01 earn rule:
By my math, using 32K miles you are spending $640.00 with no earned miles.
By paying the $850 (taxes/fees included), you are effectively spending $690.00 (16K earned = $160 value)

I did not add the fees for using miles, but this would come in around $40/ticket. Using 32K miles would still be equivalent to the $850 fare. If it were to cost you 40K miles, I'd pay the cash. The 16K miles earned here is the swing decision.

Last edited by RHines81; Nov 23, 2008 at 5:21 am
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Old Nov 23, 2008, 7:28 am
  #6  
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Check out Value of Miles on pgary's website Free Frequent Flier Miles. Very good analysis on when to use miles vs dollars.
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Old Nov 24, 2008, 4:13 am
  #7  
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Originally Posted by RHines81
If you could find a cheap way to get to SEA, then of course your options would be in the $500+ range around the holidays.
The $850.00 price is semi-borderline.

Using a $0.02/mile spend - $0.01 earn rule:
By my math, using 32K miles you are spending $640.00 with no earned miles.
By paying the $850 (taxes/fees included), you are effectively spending $690.00 (16K earned = $160 value)

I did not add the fees for using miles, but this would come in around $40/ticket. Using 32K miles would still be equivalent to the $850 fare. If it were to cost you 40K miles, I'd pay the cash. The 16K miles earned here is the swing decision.
yeah but not really. I mean, when you order a new CC, you get free 25k miles. With AA, you can churn and essentially fly to Kenya from NYC for the 'cost' of signing up for 3 credit cards and then buying some US mint coins that you return. Those miles effectively cost you nothing but time.

Time is money, but this is a hobby for most, so that has no cost. In fact it alleviates stress for some, which saves them elsewhere!

I'd use miles if I can when a fare is over say $300. I have more chances these days of coming up with new miles to put into an account than I have to get a new $300. What, with the economy and all--and not to mention the cost of a box of baby diapers!

If you are not flying AA of course, I've found that people who know each other trade awards and other airlines have promos and other means to get many miles with ease.
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