Originally Posted by
radonc1
I am uncertain as to whether to start a new thread, or perhaps there is an old one. However..
I was originally using MSing to qualify for certain CC benefits. With the passing of Amex's use at SM, I wanted to see if there was any sense to continuing this endeavor for the points.
Just to clarify, I use MSing with CCs not for point value per se, but to get benefits such as status level, etc. (Points were just an added benefit) But I want to look at just how beneficial the points that I receive are as well.
Quick calculation.
At best, using SM, I can get $1000 of MOs for around $8.78. ($3.95 card charge for $500 card plus MO cost of $0.88 per $1000.) (I have specifically eliminated specials such as Staples or OM. I don't use GCM or GC.com through a portal so I do not know the cost using these sites, but let's agree that the complexity in this endeavor becomes greater).
Using
this site, the average loyalty program value is $0.01 per point, which means that your 1000 points is on average worth only $10.00 (range $5-$19). (Scroll down to the table labeled "Point value by loyalty program")
So, other than very specific stays (such as stay 5 nights, pay for 4), or very specific sales on specific dates for individual properties, most routine stays now cost a fortune in points. Is there any sense to doing MSing for hotel points? And given the incredible difficulty in using points for airline awards (especially F fares, etc), this is also true for most airlines as well.
Does it make sense to do MSing just to gain points?
Has the world of reward travel been turned upside down by MSing?
I don't think reward travel has been turned upside down by MSing. For one thing, those of us doing huge volumes are usually going for cashback. For another, hotels were always a bad deal for MSing. Airline points are always worth at least a penny, while hotel points are usually worth about half that.
The question of "what are airline points worth" is horribly complex but I'll just offer a couple of thoughts. First, most airlines do not match point cost with cash cost, it's not uncommon to find a last-minute ticket that can be $400 cash or 12,500 miles, so it's worth having the miles around. (Especially since United is eliminating close-in ticketing fees.) I'm not sure what you mean by "F" fares. Overseas premium cabin saver availability has always been hit or miss, but compared to the cash price, miles are usually worth in the range of 4 cents each when you can redeem them that way. You have to do some work, and be flexible on dates, to use them, but there IS availability and when you find it the miles are really valuable.
I admit that I don't understand the banking business at all and why the opulent signup bonuses and 2% (or more) cashback. Of course if the reward is a loyalty currency that will never be used, then it's a good deal for the bank and the airline, and I'm sure a lot of loyalty currency expires unused.