I did a current cost comparison - more to see if someone has an opinion on the assumptions I've made and the math I've used.
My two basic assumptions
- Work things out based on 'how many points does it take to buy a dollar'
- Define a dollar as a 'VA$' - so in effect what VA will charge rather than what that service might cost (if you booked the same service with other airlines on the same day.. )
Using a point in time by comparing the cost of redeeming a VA flight in either saver/flexi or business vs buying that flight on the day and doing this based on a one way SYD-BNE flight, assuming a CC surcharge, I get:
VA reward (surcharge only) value of 154 points per VA$
- Obviously using points to pay surcharges is not very efficient
- This is pretty consistent across all types of reward (internal or any seat)
VA reward (award/internal VA booking) value (including surcharge) of
- assuming cheapest fare of the day
- 66 points/VA$ against saver
- 26 points/VA$ against flexi
- 25 points/VA$ against business
I used $153/$393/$688 (approximately)
- assuming most expensive fare of the day
- 30 points/VA$ against saver
- 23 points/VA$ against flexi
- 21 points/VA$ against business
I used $333/$433/$813 (approximately)
So yes, the perceived value of a VAV point will vary on a daily (well, hourly) value of the airfare you've redeemed it against and your 'best value' is when you can redeem for business (assuming efficiency and unlimited points).
It's more efficient to pay the surcharges (except if you end up paying a CC fee on top as well) in cash.
You can also see that business pricing on SYD-BNE doesn't vary nearly as much as Saver pricing does (it can more than double between cheapest and most expensive pricing).
Comments?