Originally Posted by
Ted King
In microeconomics, there's a concept concerning indifference curves that is really relevant to this point. For this poster, getting a $400 room for a cost of $100 is a great deal because this poster values the $400 room at $400.
The same person may value the $400 room at only $100 and would rather have the cash because he or she doesn't want to have the points locked up.
It's an interesting discussion.
Or maybe even less. I rarely stay in hotels or fly. I can't pay my taxes or heat my house with miles.
You completely missed my point though. I understand that points have different values to different people. What I was saying is don't pretend that those miles cost you nothing because you earned CB to 'offset' the fees. You could have just as easily earned the CB and foregone the points. In fact, an argument could be made that there is an additional opportunity cost to MS for points that costs you even more money.
IE. Loading BB with 5k of VRs earning points is 5k of VRs you didn't earn CB on. Your opportunity cost (assuming 2% CB) is $100.79.