Originally Posted by Efrem
It is, and this gives one example, easy to find ways to redeem miles which offer "values" approaching 10¢ per mile - if you calculate "value" by dividing the cost of a ticket into the miles needed for an award. However, unless you would (absent an award) have paid that much of your own money for the ticket, which is hardly ever the case, the true value of the miles is far less.
You raise an excellent point, though using awards that you would pay for doesn't necessarily reduce the true value of a mile below the 1.2 cents/point break-even point (2.49/2 with a double miles promotion).
To use a routine example where I would otherwise pay cash: A weekend night at a LAN Sheraton was $114 (with tax), or 3,000 points. That's a return of 3.8 cents/point - more than two times the 1.2 cents/point convenience fee.
In reference to the NYT piece, we all know that mass publications are for the masses - information that's true for most people. The article is probably correct for most airline cards. But for Starwood the math is straightforward: 10K points will cost $124.50. Will a 10K-point room cost you more than $124.50?