In most cases, when I use my miles instead to buy awards for my personal travel, I come out ahead compared to upgrades.
I started in the miles game in 2000 or so, when I realized LH to Asia could be upgraded for 35+30k UA miles in each direction
Then I found that it had to be YHMB fares on LH only - then I found that award space was at a premium
Then when I found that US-SIN was 120k on UA miles on the same flights + 200$ taxes, I realized that 140k miles +2k ticket with some chance of upgrade was a lot worse.
Originally Posted by
pauleeepaul
I use miles almost exclusively for upgrades. There the valuation is a little fuzzier but imo is definitely higher than for most award tickets.
If my employer buys economy and I can use my miles for upgrades instead of paying cash, then the "value" is higher
But even then if price difference is 1k for a tanscon flight, I would suck it up and sit in the back if needed.
Using 50k miles instead does not make them worth 2c; I think the value is probably half that, but I would pay to upgrade the red eyes in a heart beat.
Originally Posted by
VegasGambler
You are probably right.. if you assume that business is $2k per direction and econ in $600 per direction, then 25k miles + $350 copay + $600 fare is slightly better than 60k one way. But it's close and it really depends how many miles you have. I'm hovering around half a million and am going to earn 200k - 250k per year on my way towards status so if I don't burn then they pile up. So I would rather pay 60k than 25k + $950. The miles do have value but only up to the actual amount that you want to fly. Once you have more than you need they become kind of worthless. I won't turn down an opportunity to redeem if it saves me 2c or more per mile.
I think of miles as cash value and factor that in my purchases
AA miles - 1.9c
Any airline mile that can be got via most transferable currencies = 1.4-1.5c per mile usally (AF, EK, EY, AC, VS, BA, IB, QR, CX, QF etc)
https://www.flyertalk.com/forum/capi...urrencies.html
Most good cards are 2x instead of 2.625c cash back, so 1.3c + overhead cost of carrying extra cards and fees etc
UA miles - via Chase 1.75c or less (I think of it as 1.8c value for which I paid <1.5c in lost cash by getting UR at bonus rates)
DL miles - my acquisition cost is high 2.6c instead of cash back, but for years I justified it as worth the status (1.3 c for the miles and 1.3c prepaid for the upgrades and benefits of lounge). No longer. I will only use my Amex for airfare at 5x and use that for DL miles when I need them if ever.
You also have to factor in taxes and fees. e.g., our trip to Italy /Berlin in October
My kids are not sure of free time - so I booked them on AA +750$ fees on BA outbound
My value = 57.5x1.9c +750 = 1800$ - but I know cancels are free and it is going to be canceled now anyway
I booked us on CX miles on same BA flights +250$ taxes 61k miles (now 80k today) cost 800+250 about 1050 oneway
Future cost 1300 or so
Coming back again we are on CX miles 61k +450 = about 1250 total cost
Kids booked on AA 57k +400 - but free cancel again a factor
I got the CX miles via a group apporama on Capital 1 venture X business 30k spend = 150k bonus+ 2x = 210k miles = cost 0.3c
I still think of the value of CX miles as 1.3c min as my replenishment cost from spend is 2.6/2