Originally Posted by
WilcoRoger
When it comes to credit cards, your (and the NYT's) analysis does have merits, of course - the main argument being that cashback can be used for anything, not just hotels (or flights)
That's why it is so important to have a baseline value for miles & points. Most commentators value points and miles at <2 cents (USD) - if you concur then it makes no sense to spend on cards that earn 1 mile per $1 as your ROI would be better with a 2% cash back card. However there are many opportunities to earn bonus miles and points for dining, groceries, etc. at which point your ROI is potentially higher with the mileage/point cards.
I just redeemed 600k Chase UR for 4 RT business class seats from USA to the middle east. Assuming I earned at an average of 2 UR per $1 spend, my $300k spend would have generated $6000. That would not even buy 2 seats at current prices nor would I have the flexibility to cancel, rebook etc. (current waivers aside). At normal fares cash back would buy 1 seat at best.
Yes, most people would be better off with a 2% cash back card if they plan to use miles for domestic RTs. But definitely not for aspirational redemptions.