Originally Posted by
Troopers
I can't disagree with your assessment of your situation. Value can be extracted from the Hyatt CC or any other card but that's not the subject of this thread/side discussion - subject is UR value.
Also, holding a UR earning card slightly changes the value proposition of holding the Hyatt CC (ot sure if it even does but I suppose a case can be made).
Oddly, your valuation of UR at ~1.8 is greater than your valuation of Hyatt at 1.6-1.7 despite your statement that you value the UR at the value of the highest rated partner, which in your case is Hyatt since you have no desire to transfer elsewhere.
In regards to my non-UR Hyatt points accumulation, you had previously commented "I don't understand the logic as UR earning ability is much higher." in response to my comments about accumulating points for Hyatt, which is a UR transfer partner. Hyatt points valuation is relevant to the UR valuation discussion.
When asked how I would value flexible points currencies, I was not accounting for the valuations of bloggers. For my airline redemptions, I go for business or first class international flights.
My rationale for UR (and Membership Rewards) valuation at $.018 per point....As of today, I can buy Starpoints at $.02275 per Starpoint (20000 Starpoints for $455). With a 5000 point bump to 25000 airline transfer points, that comes to a value of $.0182. Starpoints can be transferred to many airlines. As cash prices for RT tickets can be very high for business or first class flights, I use the miles purchase price for valuation. I believe this valuation to be reasonable. Both UR and Membership Rewards have valued airline partners such as Korean Airlines or ANA. Basically the UR or Membership Rewards would be an opportunity cost as opposed to buying miles.
Airline points/miles are complex to value. Much too complex for one post on this forum.
Here are some of my takes...For economy class tickets, it is best to use the fare price rather than the cost of miles via purchase to factor point value (always use the lower value of the two). For airlines which require many more miles for a redemption than others, their point valuations should take a haircut. Factor in fuel surcharges, points expiration risk, airline default risk (Air Berlin points anyone?), saver mile availability, qualitative differences...