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How much is a SWU worth to you?

 
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Old Jan 7, 2013, 1:25 pm
  #1  
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How much is a SWU worth to you?

I know that you can't sell SWUs but I am flying with a friend who I plan to upgrade with me on a transpacific flight to Asia. I don't mind using my upgrade on him but he insists on "getting me back" at least some of the value of the upgrade. I don't mind using it on him because its a great way to use it and I'd rather have it this way than miss out on using it at a later date.

My question is, if you had to give an approximate value on how much an SWU is worth, what would you place it as?
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Old Jan 7, 2013, 1:27 pm
  #2  
 
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Originally Posted by milkchug
I know that you can't sell SWUs but I am flying with a friend who I plan to upgrade with me on a transpacific flight to Asia. I don't mind using my upgrade on him but he insists on "getting me back" at least some of the value of the upgrade. I don't mind using it on him because its a great way to use it and I'd rather have it this way than miss out on using it at a later date.

My question is, if you had to give an approximate value on how much an SWU is worth, what would you place it as?
It's equivalent to 25,000 AAdvantage miles plus $ 350 if it's being used to upgrade from a discount economy fare.

The value of 25k miles to people who post on FT generally ranges from $ 250 to $ 750. Therefore, the fair market value of a SWU would be in the range from $ 600 to $ 1,100.

(SWU is more valuable than miles + copay because it can be cancelled without loss of co-pay, but less valuable because its expiration cannot be extended)
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Old Jan 7, 2013, 1:27 pm
  #3  
brp
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[Dr. Evil]One billion dollars.[/Dr. Evil]

Cheers.
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Old Jan 7, 2013, 1:27 pm
  #4  
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Generally, I consider them worth the amount of the co-pay ($350) plus 25k miles. The total dollar value depends on your per-mile valuation. Once you have that, it's a really simple formula.
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Old Jan 7, 2013, 1:31 pm
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Depends on the application/routing. $350 for shorter international routes (JFK-LHR, South America zone 1); $500 for TPAC, longer TATL, and deep SA.
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Old Jan 7, 2013, 1:33 pm
  #6  
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Some of us have given others SWUs and have received gifts - but be aware sales, trade or barter violate the conditions of the SWU and that can have untoward consequences for both parties. (So, any gift back is a nice thing...)
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Old Jan 7, 2013, 1:33 pm
  #7  
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Originally Posted by tkelvin69
Depends on the application/routing. $350 for shorter international routes (JFK-LHR, South America zone 1); $500 for TPAC, longer TATL, and deep SA.
Looking to use it on LAX-NRT flight from discount economy.
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Old Jan 7, 2013, 1:40 pm
  #8  
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is the swu expiring 3/1 & you will have no use for it?

has friend done something nice for you?

maybe pal can pick up the hotel/sherpa costs?
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Old Jan 7, 2013, 1:41 pm
  #9  
 
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People here trade SWUs for about 10k miles or credit card points. So that's the market value if you're willing to do a bit more legwork.
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Old Jan 7, 2013, 1:52 pm
  #10  
 
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Originally Posted by beerup
Therefore, the fair market value of a SWU would be in the range from $ 600 to $ 1,100.
...more specifically, your friend could purchase 25k miles for $ 655.81 inc tax (purchase 21k miles with 4k bonus) which could be used to upgrade with a $ 350 co-pay; so the equivalent upgrade would cost him ~$1,000.
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Old Jan 7, 2013, 1:59 pm
  #11  
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Cool

Originally Posted by brp
[Dr. Evil]One million dollars.[/Dr. Evil]

Cheers.
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Old Jan 7, 2013, 2:28 pm
  #12  
 
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Originally Posted by beerup
It's equivalent to 25,000 AAdvantage miles plus $ 350 if it's being used to upgrade from a discount economy fare.
The value of 25k miles to people who post on FT generally ranges from $ 250 to $ 750. Therefore, the fair market value of a SWU would be in the range from $ 600 to $ 1,100.
Above is just a theoritical price/value, not a fair market price/value.

I thought the value of eVIP was $500-$700 by using the exact same formula above...
until someone told me that there were many people willing to sell eVIP at much cheaper than that.
To my surprise, the fair market value( i.e. the price actually traded at the market) of eVIP was at around $150 or even cheaper.

If you look at the craiglist at DFW or other major cities, you can easily find eVIP listed at less than $200.

Last edited by supergrandslam; Jan 7, 2013 at 2:33 pm
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Old Jan 7, 2013, 2:38 pm
  #13  
 
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Originally Posted by supergrandslam
I thought the value of eVIP was $500-$700 by using the exact same formula above...
until someone told me that there were many people willing to sell eVIP at much cheaper than that.
To my surprise, the fair market value( i.e. the price actually traded at the market) of eVIP was at around $150 or even cheaper.

Considering the potential consequences faced by those caught buying and selling SWUs, I think it is appropriate for the black-market ones to be significantly devalued.

Last edited by _kurt; Jan 7, 2013 at 6:28 pm Reason: Add quote so that my post doesn't look like a complete non-sequitur
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Old Jan 7, 2013, 2:44 pm
  #14  
 
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10k, really? if you ever have a SWU that you would trade for 10k, pls don't post it on CC. send me a PM and we'll get it sorted right away.

IMO, a SWU is worth 25k miles or $250 - $450 depending on expiration.

Originally Posted by chuckywang
People here trade SWUs for about 10k miles or credit card points. So that's the market value if you're willing to do a bit more legwork.
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Old Jan 7, 2013, 3:07 pm
  #15  
 
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Originally Posted by supergrandslam
Above is just a theoritical price/value, not a fair market price/value.

I thought the value of eVIP was $500-$700 by using the exact same formula above...
until someone told me that there were many people willing to sell eVIP at much cheaper than that.
To my surprise, the fair market value( i.e. the price actually traded at the market) of eVIP was at around $150 or even cheaper.

If you look at the craiglist at DFW or other major cities, you can easily find eVIP listed at less than $200.
You're right, I meant to say a transitive value rather than a fair market value as I wasn't advocating the sale of a SWU, just giving the worth (in terms of what others pay AA, through legitimate means) for the services to be received.
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