$ Value for MR Point

Old Jan 2, 2004, 9:35 am
  #1  
Original Poster
 
Join Date: May 2000
Location: Nawlins, LA
Programs: Nada!
Posts: 419
$ Value for MR Point

I am sure that this has been discussed but what is the consensus on the dollar value for each MR point?

I'm looking at trips and I am trying to determine if the better deal is to use the points for the hotel or the airline.

Thanks
sr_tipitinas is offline  
Old Jan 2, 2004, 10:19 am
  #2  
 
Join Date: May 2000
Location: Houston, TX, USA
Programs: UA 1K, AA Lifetime Platinum, DL Platinum, Honors Diamond, Bonvoy Titanium, Hertz Platinum
Posts: 7,954
As an upper bound, use 2.5 cents per point as a value. Personally, I think they're worth a lot less than this, but there should be no situation where anyone would value them more than this (that is, where they'd pay for something that they could otherwise get for free with MR points). The reason for this is simple: MR members can purchase up to a half-million points per year at 2.5 cents each.

On the low end, there are lots of MR gift certificate type of things where the value comes out to 1 cent per point and that can be used as a proxy for cash for things that you'd be buying anyway. So, I think a reasonable valuation is somwhere between 1 and 2.5 cents per point. The main deciding factor of where this value is for you I think would be what you value your miles in your most valuable MR-participating airline FF program.
Steve M is offline  
Old Jan 3, 2004, 8:53 am
  #3  
PHL
FlyerTalk Evangelist
 
Join Date: Dec 2000
Location: PHL, NYC
Programs: AA PLT, DL SLV, UA SLV, MR LTT, HH DIA
Posts: 10,035
I assign $100 per 10,000 points, so I guess my fuzzy math makes that 1 cents/point.

Based on that, you can see that most of the merchandise is way overpriced. But if you earned the points on a company expense account, it's all free money anyway, right?

The gift cards aren't such bad value, and are always nice to give people as a nice present. Some of the hotel awards are good, too, if the value is right.

If something's 30,000 points and I could get it for $200, then I save the points for something else. Transferring to an airline and redeeming Biz/First class intl. award tickets is a good way to get a lot of value.
PHL is online now  

Thread Tools
Search this Thread

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.