What's everyone's experience with the true value of a FF point with different reward programs when purchasing flights? The theory is 2 cents, but with NW Worldperks, I generally find something around 1 - 1.5 cents is the best I can do when comparing the $ rate Northwest would charge me for the same flights (and a little worse when compared to online discount travel services).

I'm hoping that if enough people reply with their findings when purchasing, readers can get a feel for what value they need to get in order to feel that they're getting a good deal.

Also, if anyone is aware of a source or site that has already done more extensive analysis of this sort, please let everyone know. I'd love to also find out the value of hotel points, etc, but one step at a time...

PGARY's website (http://home.earthlink.net/~pgary/MilesFrame.html) lists this as a good way to calculate your value, and states that he uses 1.6 cents as a baseline, for example:

"To compute the value of one mile;

First subtract the dollar charges for using miles from the dollar cost of buying the ticket. This is the dollar amount you save by using miles.

Then add the miles you would get by using dollars to buy the ticket to the miles you would be charged for the ticket if you were to use your miles to get it. This is the total number of miles the ticket would cost you.

Now divide your dollar savings you just computed by the total miles you just computed to find the cost per mile."


[This message has been edited by Statistician (edited 06-29-2003).]

[This message has been edited by Statistician (edited 06-29-2003).]