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-   -   Using points or $ question (https://www.flyertalk.com/forum/american-airlines-aadvantage/1578253-using-points-question.html)

emaij May 19, 2014 7:15 am

Using points or $ question
 
My choice for an identical itinerary for yyz-ord-san is the following:

Use 12,500 miles plus $57.60 in fees, or pay $266.91.

I will earn 2695 miles for the trip if I pay, including a 25% bonus for being lifetime gold.

If I just take the $57.60 out of the equation (since I pay that either way), my choice is to pay $209.31 and earn 2695 miles, or pay 12,500 miles.

Am I correct in saying that this equation values the miles at 1.4 cents per mile? So that if I think the miles are worth more than 1.4 cents, I should use money? And if I think the miles are worth less than 1.4 cents I should use the award travel?

dukerau May 19, 2014 8:12 am


Originally Posted by emaij (Post 22887980)
My choice for an identical itinerary for yyz-ord-san is the following:

Use 12,500 miles plus $57.60 in fees, or pay $266.91.

I will earn 2695 miles for the trip if I pay, including a 25% bonus for being lifetime gold.

If I just take the $57.60 out of the equation (since I pay that either way), my choice is to pay $209.31 and earn 2695 miles, or pay 12,500 miles.

Am I correct in saying that this equation values the miles at 1.4 cents per mile? So that if I think the miles are worth more than 1.4 cents, I should use money? And if I think the miles are worth less than 1.4 cents I should use the award travel?

Yes. Maybe. Yes.

Even if you think the miles are worth more than 1.4 cents, you may want to use the miles for this booking. Possible reasons why: don't want to do cash outlay, cost to acquire new miles is low, already have an abundance of miles.

Bttc May 19, 2014 11:56 am

If you fly enough on AA for elite status, you also need to take the EQM/EQP/EQS into account.


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