What is the value of dividend miles?
May 21, 2010, 7:54 pm
#16
Join Date: Jan 2009
Location: WAS
Programs: AA EXP2M, DL 1MM DM ext, UA PP <=> HH G/Marr PE/Hyatt G/IHG P FT RA ( Recovering Addict)
Posts: 4,596
Can you rewrite this to clarify your point? I think you're factoring in the loss of earned miles when using an award ticket -- but I'm not certain. If so, you need to factor in the value of forgone EQM's, too (not just the value of forgone miles). But I'm not sure how to value EQM's vs. regular miles.
To further complicate things, keep in mind that many of us would NEVER actually pay for a C or F ticket overseas. Take my itinerary to HKG in F, which would cost $22,500. I would never actually pay for that itinerary, so the most miles that I would truly forego by flying on an award ticket to HKG is the mileage I'd earn in Y. The F bonus cannot be factored in since I would never buy that itinerary in F.
To further complicate things, keep in mind that many of us would NEVER actually pay for a C or F ticket overseas. Take my itinerary to HKG in F, which would cost $22,500. I would never actually pay for that itinerary, so the most miles that I would truly forego by flying on an award ticket to HKG is the mileage I'd earn in Y. The F bonus cannot be factored in since I would never buy that itinerary in F.
You are right, I was looking only at RDMs and not EQMs.
If you value EQMs as 1 RDM then the equation becomes even more in favor of using cash instead of free Y tickets.
I used twice the cost of economy for Biz (as I would pay that much for sure, and based on discount biz costs from my previous travels). Also remember that when you book awards 11 months out, there is NO discount business and the costs are high in comparison.
But there are other benefits to miles. I had a free day on Friday and was able to go one day early for no change fees, LH F here I come - FCL look out!
Last edited by ffI; May 22, 2010 at 6:48 am
May 22, 2010, 1:22 am
#17
Join Date: Nov 2007
Location: PHX
Posts: 4,787
Hey guys. I am a somewhat frequent flier (30-40 segments/year), but have never booked a flight using miles. I have some upcoming personal trips where I could use miles, but all of the flights are under $300, while the low cost miles options are sold out, meaning it'd be 40k miles to book. Seems better just to pay the money and save the miles for a tip overseas, no?