FlyerTalk Forums - View Single Post - Tax Payment Bonus Thread
Thread: Tax Payment Bonus Thread
View Single Post
Old Feb 25, 2006 | 9:45 am
  #65  
dhuey
A FlyerTalk Posting Legend
Community Builder
Community Influencer
All eyes on you!
25 Years on Site
 
Join Date: Feb 2001
Location: Berkeley, CA USA
Programs: Piggly Wiggly "Shop the Pig!" Preferred Shopper
Posts: 60,667
Originally Posted by Family flyer
To help streamline the decision process, the following equation assumes you will get double miles on your entire tax payment:

P = payment
W = worth of mile

0.0249*P = W*2P, which reduces to:

0.0249 = 2W

0.01245 = W

So if you value a mile at more than 1.2 cents, charging is worth it.

A previous post valued 10,000 miles at $125. This value is very low if using SPG. I just paid 60K points for six nights at a St. Regis (12K/night plus one free). That works out to 10K/night and the rooms, with tax, were around $800.
One minor adjustment -- don't forget the 1x miles one gets for charging the convenience fee.
dhuey is offline  
Reply