Using points or $ question

Old May 19, 14, 8:15 am
  #1  
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Join Date: Jun 2000
Location: SAN
Posts: 887
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?
emaij is offline  
Old May 19, 14, 9:12 am
  #2  
 
Join Date: Aug 2010
Location: CLT
Programs: AA, UA, BA, Hilton Gold, SPG Gold, IHG Platinum
Posts: 2,072
Originally Posted by emaij View Post
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.
dukerau is offline  
Old May 19, 14, 12:56 pm
  #3  
 
Join Date: Jan 2012
Location: ORD
Posts: 980
If you fly enough on AA for elite status, you also need to take the EQM/EQP/EQS into account.
Bttc is offline  

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