FlyerTalk Forums - View Single Post - New policy for paid and miles upgrades (AF/KL) - sept 2017
Old Feb 4, 2019, 10:09 am
  #656  
ranskis
 
Join Date: Apr 2005
Programs: AF/KL FB Plat ; A3 Gold ; HH Gold ; IHG Plat Amb
Posts: 2,383
I would not look much at the public fares to determine the value of miles earned. I would look at how much cash I would be ready to pay instead of redeeming an award ticket.

For first class to USA East Coast, I would perhaps pay 1000 EUR + tax one way and 1500 EUR to far east Asia or South America, since indeed I bought such tickets cash with special offers (not on AF though). So 200k/320k miles offset 1000/1500 EUR in my "personal value book", so 1000 miles are worth 5 EUR for me if I redeem them on AF F.

For Business class, I would pay 600 EUR+tax to USA one way, 800 to Far East Asia. An award is 50k to USA or 90k to Asia more or less, that makes 1000 miles worth 9-12 EUR.

I know that most of the time, when I can get a round trip to USA in J for 100-120k miles the retail price for a cash ticket can be 3000 EUR or even much more if I need one way or don't spend saturday night there but since I would not buy such ticket cash at this price, I should not consider it as a 3000 EUR saving but rather what I would be ready to spend for such a cash ticket. If someone like San Gottardo routinely buys expensive fares like that 3000 EUR or more C ticket to USA, then in his value book, 1000 miles = 30 EUR or more. Since for a platinum it takes 125 EUR spend to get 1000 miles, the new FB scheme is very profitable as 12500 EUR spent on 4 tickets at 3000 EUR each earns a value of 3000 EUR or more depending on what ticket it replaces, making 155 EUR value for 125 cash outlay, roughly a 25% discount overall.

For me, in my value book, 1000 miles = 10 EUR, and this has not changed much in the last 20 years actually. Of course I try to get better value for my redemption, it could be with promo awards, some sweet spots, or the odd European one way I need and would cost a lot of cash in Y but a reasonable amount in miles etc. So as a platinum, I spend 125 EUR and get 135 EUR value, so I count on an 8% discount, not shabby but I would not consider it an excellent or I would go out of my way to get these miles. For European flights, my platinum for life status makes the experience much nicer than on competitors with whom I don't have status or that don't recognize status properly (BA/SK/LH light fares and baggage/seating fees for elites). For long haul, since I would not fly Y anyway, status does not matter much, I have more to earn by flying on other airlines especially with good F deals or redemptions to get status in other alliances.
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