Originally Posted by
BenSenise
the percentage return is only accurate when you get a ticket at the maximum price allowed. If you get a ticket that had a base fare of let's say $200, then your return is 6.7%
BUT, do you have to pay taxes & fees on these tickets or do the points cover the whole cost? in the latter case the return could potentially be even higher than 10%. i've never used fixed price redemptions of this kind before, like RBC Rewards and Air Miles to name a couple.
True if you don't maximize the base fare. I've never redeemed via the AMEX fixed mileage program but taxes are not covered but you are however allowed to convert points at a really bad rate i think it was like at a value of $0.01 per point to cover.
Taking signup bonuses out of the equation - if i were to spend $50K and assuming all purchases are in the 5X category i can get 62.5K pts via SPG AMEX (after airline transfers) or the same via AMEX Plat vs the Cobalt now which is enough for a RT anywhere in the world in J - granted base fares are <$4.5K. It's an interesting proposition - now actually spending $50K on Groceries, Dining Out, Gas may not be easy but could make sense for some.