Originally Posted by
VegasGambler
The fact that the bag guarantee is $25 or 2500 miles doesn't mean that miles are worth 1c; it means that they are offering you two choices. One happens to be far better than the other.
Keeping a $125 voucher rather than 7500 miles is akin to selling miles at 1.7c each (or, perhaps, refusing to buy miles at 1.7c each). Personally, I value AS miles higher than that, so I'd rather have the 7500 miles. Note that the cheapest you can ever buy miles is 2c.
If my mile balance grew to a million miles or so, I'd consider taking the voucher. Otherwise, the miles are an easy choice for me at anything under 2c.
I understand your point, but there's a number of ways to look at the value proposition of vouchers vs. miles, and buying miles is just one of those. However, I'd consider taking a very cheap trip to HI or NY with a discounted airfare via that voucher. With bonuses that would net me more than taking the 7500 would, at a better per cent cost, with a trip I'd be taking anyway. You can run the #s yourself if you want a math adventure.
As always, YMMV.