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Old May 19, 2014 | 8:12 am
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dukerau
10 Years on Site
 
Join Date: Aug 2010
Location: CLT
Programs: AA, AS, UA, BA, Hilton Diamond, Marriott Gold, IHG Platinum
Posts: 2,075
Originally Posted by emaij
My choice for an identical itinerary for yyz-ord-san is the following:

Use 12,500 miles plus $57.60 in fees, or pay $266.91.

I will earn 2695 miles for the trip if I pay, including a 25% bonus for being lifetime gold.

If I just take the $57.60 out of the equation (since I pay that either way), my choice is to pay $209.31 and earn 2695 miles, or pay 12,500 miles.

Am I correct in saying that this equation values the miles at 1.4 cents per mile? So that if I think the miles are worth more than 1.4 cents, I should use money? And if I think the miles are worth less than 1.4 cents I should use the award travel?
Yes. Maybe. Yes.

Even if you think the miles are worth more than 1.4 cents, you may want to use the miles for this booking. Possible reasons why: don't want to do cash outlay, cost to acquire new miles is low, already have an abundance of miles.
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