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Thread: Question: $ value of E50
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Old Dec 20, 2012 | 7:18 pm
  #12  
hydrogen
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Join Date: Nov 2012
Location: NYC
Programs: AC SE, Bonvoy Plat, Natl Exec
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Originally Posted by Stranger
You are missing one key point: one gets to pick two options from bundle 1, two from bundle 2 and one from 3.

So for bundle 1, since you assigned zero to third option, fine. However if I get this for my wife, who normally travels on my miles, going by this year's travel, she won't accumulate more than say 15 k miles. In which case 50% tier bonus is only worth $150, arguably less. Total $1650.

Bundle 2: the e-credits only, so $500.

As to bundle 3, she won't buy a pass (I might buy a two pax one myself). So, worth zero for most people.

Total: $2150. While by same valuation, the 50 credits I will miss would be worth $2500.

So where is the catch? I will end up the year on Feb. 28 with over 50 unspent credits that will vanish. I still can use her credits so the loss is only ten. With zero marginal value to me really.

Bottom line: at the end of the day, better getting her status than seeing the credits go poof on Feb. 28. Even if she won't use much of it.
Assuming 100K BIS miles for SE at 2c per mile, that would be a $2,000 value. That would exceed the $2,150 value of nominating someone as an E50K.
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