Originally Posted by
stant
i think you might be doing yourself a disservice with this analysis. remember those miles / LP were CRAZY cheap. I HATE that I missed that deal. I'd have bought tens of millions of miles had I caught it. I bet you those were handled different from other LP calculations for CK. a million LP from credit card spend is going to be WAY more profitable than a million points from basic economy fares
Citi buys miles from AA from what is reported to be less than one cent per mile. I think one cent per mile is the absolute max for cc LPs. I also think it will go down from there in the future.
We already know from the blog reporting that 8 million miles/LP and 6 million miles/LP via the simply miles promotion were awarded CK, which 3.6 million miles/LP was not. This is anecdotal, I know, but would be entirely consistent with valuation around a penny per mile and a rough approximation of 50-60k of profitable spend (minimum). If it was much more than that, I would have expected the 3.6m person to have made it also.
Of my current LPs, 1.2 million of them are from cc spend. I am not expecting that to count for more than 12k equivalent in CK requalification.