Using points or $ question
May 19, 2014, 7:15 am
#1
Original Poster
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?
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?
May 19, 2014, 8:12 am
#2
Join Date: Aug 2010
Location: CLT
Programs: AA, UA, BA, Hilton Diamond, Marriott Gold, IHG Platinum
Posts: 2,074
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?
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?
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.