How much each Aeroplan mile is worth?

Old May 22, 13, 4:50 pm
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How much each Aeroplan mile is worth?

I am trying to book a couple of flights to LHR this summer, and obviously Aeroplan is trying to screw you, asking for 100K for classic, or 85K for classicplus (have NO CLUE on the difference), PLUS $650 Taxes?! Like r u serious?

At any rate, the actual flight cost $1350-1400 depending on the dates. My question is, should I bother booking one with miles? or just buy it and use miles in the future for something not as outrageous? or how much is an Aeroplan worth to calculate this myself.

Thanks!
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Old May 22, 13, 5:17 pm
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Probably better to just pay cash. Aeropesos are generally poor value for travelling Economy to Europe. Where they are a good value are:
- pretty much anything booked in Business or First Class
- short haul 15,000 point trips in Economy
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Old May 22, 13, 5:54 pm
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Originally Posted by alexbc View Post
or how much is an Aeroplan worth to calculate this myself.

Thanks!
when used for longhaul economy on scamchargeable airlines,

http://www.flyertalk.com/forum/air-c...ive-value.html


Reason Classic Plus is actually less is because it is based on the price of revenue fares on that day.
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Old May 22, 13, 6:31 pm
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Originally Posted by alexbc View Post
I am trying to book a couple of flights to LHR this summer, and obviously Aeroplan is trying to screw you, asking for 100K for classic, or 85K for classicplus (have NO CLUE on the difference), PLUS $650 Taxes?! Like r u serious?

At any rate, the actual flight cost $1350-1400 depending on the dates. My question is, should I bother booking one with miles? or just buy it and use miles in the future for something not as outrageous? or how much is an Aeroplan worth to calculate this myself.

Thanks!
Ex North America, classic should be 60k in Y, 95k in J. Plus the Aeroplan co-pay, still occasionally misrepresented as "tax."

But yes, the miles have been greatly devalued. Other folks will make a case that you can find rewards worth more. Which is nice if the sort of rewards they look at are of interest to you, but is useless if these don't interest you.

But a proper valuation for non_SE should be around 0.8 cents/mile.

Of course there are folks who enjoy wishful thinking and will price their J reward based upon full J price or that sort of things. missing the detail that rewards are equivalent to extremely restricted fares.
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Old May 22, 13, 6:38 pm
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Originally Posted by Stranger View Post
Ex North America, classic should be 60k in Y, 95k in J. Plus the Aeroplan co-pay, still occasionally misrepresented as "tax."

But yes, the miles have been greatly devalued. Other folks will make a case that you can find rewards worth more. Which is nice if the sort of rewards they look at are of interest to you, but is useless if these don't interest you.

But a proper valuation for non_SE should be around 0.8 cents/mile.

Of course there are folks who enjoy wishful thinking and will price their J reward based upon full J price or that sort of things. missing the detail that rewards are equivalent to extremely restricted fares.
Honestly asking:

How do you put a value on the restriction of availability? I don't see how the equation:

<fare for day booked on aeropesos on day booked> - <scamcharges> / <miles spent> = value per point

is wrong? How do you put a tangible value on the changing price of a seat/fare bucket over time?
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Old May 22, 13, 6:53 pm
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Originally Posted by BMGfan View Post
Honestly asking:

How do you put a value on the restriction of availability? I don't see how the equation:

<fare for day booked on aeropesos on day booked> - <scamcharges> / <miles spent> = value per point

is wrong? How do you put a tangible value on the changing price of a seat/fare bucket over time?
Accounting is always an exercise of fiction/creative assumptions.

But when you look at toasters, you quickly conclude that Aeroplan expects rewards to cost them around 0.8 cents/mile. They probably sell miles at 1 cent/mile to AC, Amex and the likes. The 20% difference should be profit.
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Old May 22, 13, 7:02 pm
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Originally Posted by Stranger View Post
Originally Posted by BMGfan View Post
Honestly asking:

How do you put a value on the restriction of availability? I don't see how the equation:

<fare for day booked on aeropesos on day booked> - <scamcharges> / <miles spent> = value per point

is wrong? How do you put a tangible value on the changing price of a seat/fare bucket over time?
Accounting is always an exercise of fiction/creative assumptions.

But when you look at toasters, you quickly conclude that Aeroplan expects rewards to cost them around 0.8 cents/mile. They probably sell miles at 1 cent/mile to AC, Amex and the likes. The 20% difference should be profit.
So a short haul AE reward that works out to ~1.7 cpm is good value? Doesn't a redemption have to be north of 2 cpm to be good value?

So I guess I'm dreaming if I were to say 5 cpm to 10 cpm redemptions are possible?
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Old May 22, 13, 7:09 pm
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This discussion comes up over and over again.

What you need to look at is what opportunities cashing in your miles gives you. If you need a new toaster, and you're convinced that it is a good deal, then do it. Plenty of people I know thing Airmiles are a fantastic thing, and I've stopped educating them, too.

On the other hand, if you will never, ever, fly in business or first on a paid ticket, and it happens to cost you a boatload of points and perhaps even several hundred dollars in "fees", but it's "worth it" to you, then that is also a good deal.

Personally, I consider my two mini RTWs in F at 120,000 points plus not much cash (pre-"enhancement" and pre-scamcharge) to be excellent deals, and there's little chance I would ever lay out money for that experience.
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Old May 22, 13, 7:17 pm
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Originally Posted by Stranger View Post
But a proper valuation for non_SE should be around 0.8 cents/mile.
I fail to see any advantage for SE apart from IKK (and I guess one free change, wooptie doo)

And IKK internationally = $$$$$ - advantage wiped.
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Old May 22, 13, 7:25 pm
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Originally Posted by hydrogen View Post
So a short haul AE reward that works out to ~1.7 cpm is good value? Doesn't a redemption have to be north of 2 cpm to be good value?
True that these can be of good value. My point remains, this is only the case if you have use of these. Additionally, such a high valuation only makes sense if you get a reward on a relatively short notice, not if booking nearly a year in advance.


Not long ago, my wife (who usually travels on rewards on my account) more or less cleaned up hers for a one way BOS-YYC in J for 25 k miles (a promotion). I paid around $850 for a Z fare on the same leg. A bit over four months ahead of time. I still would not use the value of my ticket as a reference. But if I would, it would yield
$800 (ticket - Aeroplan taxes and fees)=25k miles +3255 (miles accumulated on revenue ticket). Around 2.8 cents. But that's still too much because the reward is still more restricted.



So I guess I'm dreaming if I were to say 5 cpm to 10 cpm redemptions are possible?
Afraid so.

I would say for SE types with access to much "enhanced" IKK, 2 cents/mile ought to be a good figure. But only for SE types.

I use Europe latitude passes. My wife could use them too. They come up a bt over $2800 round trip, plus a few upgrade credits with zero marginal value. Our last trip ended up with a value of around 1.6 cents/mile.

OTOH, a trip to Canada initiating in Brazil, where "surcharges" are illegal, yielded an excellent value. Now, do we often get such opportunities? Averaging, I don't think I get much more than 2 cents/mile.

Without "enhanced" IKK, much much less.
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Old May 22, 13, 7:29 pm
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Originally Posted by rankourabu View Post
I fail to see any advantage for SE apart from IKK (and I guess one free change, wooptie doo)

And IKK internationally = $$$$$ - advantage wiped.
Advantage seriously cut down, yes. Wiped, no.

Since usually I upgrade and my wife still wants to travel with me, hence on the same flights, we have no choice.

Plus, that still usually provides availability around my travel dates. Often requiring a bit of creativity/flexibility, +/-1 day, slightly different cities, etc. But much more availability/flexibility than having to depend upon regular inventory, even if including other non-copay airlines.
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Old May 22, 13, 8:53 pm
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The SE IKK is very useful indeed.

If I am eyeing on a long tpac or tatl flight in F or J, but if I need an AC feeder flight to make the itinerary work, IKK is indispensable.

I really couldn't care less about the YQ as an F ticket is worth way more than the YQ they're charging. Even in J, if the routing is what I like or want, the YQ is a drop in the bucket compared to the value of the AP ticket. Of course, I'm talking about more complicated itineraries in J or F.
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Old May 22, 13, 9:08 pm
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Originally Posted by jarusoba View Post

I really couldn't care less about the YQ as an F ticket is worth way more than the YQ they're charging. Even in J, if the routing is what I like or want, the YQ is a drop in the bucket compared to the value of the AP ticket. Of course, I'm talking about more complicated itineraries in J or F.
Thats not the point. Yes we know you are happy to pay, you never fail to mention it in your posts. And yes one could argue that one still gets 'value' in J/F

The point is AE is extremely poor value with YQ compared to YQ-less FFPs.

When an Aeroplan ticket costs $1200 in YQ to go to LHR, and other FFPs are charging just the tax on the SAME AIR CANADA FLIGHTS - this truly illustrates the lack of any value of an Aeroplan mile.
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Old May 22, 13, 9:30 pm
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Originally Posted by rankourabu View Post
Thats not the point. Yes we know you are happy to pay, you never fail to mention it in your posts. And yes one could argue that one still gets 'value' in J/F

The point is AE is extremely poor value with YQ compared to YQ-less FFPs.

When an Aeroplan ticket costs $1200 in YQ to go to LHR, and other FFPs are charging just the tax on the SAME AIR CANADA FLIGHTS - this truly illustrates the lack of any value of an Aeroplan mile.
I have never said I'm HAPPY to pay the heavy YQ that AP charges. But when I make a booking on points, I want to go on the routing that I prefer, and I want to go on the days that I want.

My post was to say that being AC SE, I have this advantage of being able to access IKK and be able to get the AC connecting flights on the dates I want.

Having to pay a higher YQ is not the point because on a different FFP, I wouldn't be able to access IKK on AC flights being an SE.
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Old May 22, 13, 9:32 pm
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Originally Posted by jarusoba View Post
The SE IKK is very useful indeed.

If I am eyeing on a long tpac or tatl flight in F or J, but if I need an AC feeder flight to make the itinerary work, IKK is indispensable.

I really couldn't care less about the YQ as an F ticket is worth way more than the YQ they're charging. Even in J, if the routing is what I like or want, the YQ is a drop in the bucket compared to the value of the AP ticket. Of course, I'm talking about more complicated itineraries in J or F.
Sorry, but what is IKK? What else can I use the points for? I've never seen them offered to upgrade a flight. Can I use those for upgrades outside of eUpgrades?
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