View Single Post
Old Jan 6, 11, 2:17 am
  #11  
pshuang
 
Join Date: Nov 1999
Location: SFO
Programs: UA 1.050MM, PersonalCar 0.275MM
Posts: 1,718
Should the range of effective rebates (without elite bonuses) be from 5% to 20%? The summary currently says the low end of that range is 6%.

My math:

High end: $1,000 in spend on BusinessSelect fares (multiplier=12) yields 12,000 points. If redeemed on WGA fares (divisor=60), 12,000 points can purchase $200 in WGA fares. => 20% effective rebate.

Low end: $1,000 in spend on WGA fares (multiplier=6) yields 6,000 points. If redeemed on BusinessSelect fares (divisor=120), 6,000 points can purchase $50 in BusinessSelect fares. => 5% effective rebate.

Or put another way, the spread between best earning rate and worst earning rate (sans elite bonuses) is 2x. The spread between best redemption rate and worse redemption rate is also 2x. Therefore there should be a 4x difference total between best effective rebate rate and worst effective rebate rate.

Overall, I can see RR 2.0 as being beneficial for me. Over the last couple of years, as I've looked at ramping up my earnings in RR 1.0 by taking advantage of all opportunities and promotions, I'm finding I'm earning RR awards faster than I am redeeming them, and thus the expiration on awards (and the $50 extension option) is a little painful. I will very much like the ability to keep all points alive with any account activity.
pshuang is offline