I'm always amused when, as has happened again in this thread, someone cites a situation where a BF class ticket and/or a hotel night costs some ungodly amount and then proceeds to value their points/miles based on that. We could generate a number of scenarios where miles are worth 10 or even 20 cents each. Is that the figure that one would apply for "everyday use" of miles? Would a typical traveller even pay those fares if miles were not available? I don't think so.

In valuing points/miles, most FlyerTalkers do not adjust for award availability. Let's face it, award rooms or award seats are capacity controlled and almost everyone has faced a situation where they are unable to get the dates/flights they really want. In some cases people are shut out completely and have to alter plans (destinations, dates, etc.). Mileage valuations should be discounted by 10% or 20% or perhaps more to reflect this. In addition, devaluation is a fact of life in most every program. Unless you plan on collecting and redeeming ALL your points/miles prior to the next award schedule change (who knows when that will be?), what you are earning now is worth less than you think. Seems that most programs devalue every few years (3 years on average in my view). If you started from scratch now (0 point balance) thinking points are worth 1 cent each under the existing award schedule, then you really need to collect and use all points within the next 3 years to prevent devaluation, otherwise the points are not worth 1 cent.

For the above reasons, I have tended to take a more conservative view of mile/point valuation, and consider my Marriott points to be worth about .87 cents each. I frequently get better value that that when I use them, but if I need a place to stay and can receive .87 cents of value from using points, I'll use the points rather than pay cash.