[Braggarts Wanted] What's the highest value you've ever received from MR points?
Nov 20, 2018, 6:38 pm
#31
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Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
That's the key with premium cabin awards. Yes, there are fair market value metrics for the points. Airlines charge banks a certain price. They charge retail customers a higher price. There's the grey market for selling miles, probably in violation of the program rules.
But usually in this forum when we talk about the redemption value for points, we are adding a big subjective factor of what the mileage award is worth to the person doing the flying. These valuations will vary quite a bit from person to person for the very same award. I think it's really interesting to see the various ways people think through that.
But usually in this forum when we talk about the redemption value for points, we are adding a big subjective factor of what the mileage award is worth to the person doing the flying. These valuations will vary quite a bit from person to person for the very same award. I think it's really interesting to see the various ways people think through that.
Nov 21, 2018, 6:01 am
#32
Join Date: Mar 2013
Location: EWR
Programs: World of Hyatt, Marriott Bonvoy, Hilton Honors, UA Mileage Plus
Posts: 1,255
"The redemptions are offsetting the cash cost of something." This is apparently wrong. For the example I mentioned just above, at $25,000 cash value, there are few takers. So the normal $25,000 seat is up for redemption, or for premium upgrade. So what is the value of this seat? Face is $25,000; open for full redemption (cheaper); partial redemption (even cheaper); then same day premium upgrade; then open to last minute change or stand-by (free upgrade). Where do you assign the cash value? There may not be any alternative with this kind of seat with shower onboard. This is so subjective.... Are you happy to get 20 cpp when you redeem for full fare ticket? Or you get 2 cpp just two days before the flight (at fare sale)?
The points are valued at the cash price of the lowest equivalent cost of product regardless of airline at time of booking.
Example: Both American and United fly daily EWR-ORD flights. American is almost always $100 cheaper than United on this route. If United is charging $400 and American is charging $300 and I use 12,500 United miles to book this award fare then my redemption is based on the $300 American is charging regardless of the fact that it is on United metal.
Nov 21, 2018, 6:20 am
#33
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Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
I’ve already explained my methodology. If you choose to do it another way that is fine.
The points are valued at the cash price of the lowest equivalent cost of product regardless of airline at time of booking.
Example: Both American and United fly daily EWR-ORD flights. American is almost always $100 cheaper than United on this route. If United is charging $400 and American is charging $300 and I use 12,500 United miles to book this award fare then my redemption is based on the $300 American is charging regardless of the fact that it is on United metal.
The grandma probably just stock her 50,000 MR points for next trip she badly needs...
This kind of comparison goes nowhere. This thread (compare redemption and point value) has no meaning.
Nov 21, 2018, 6:39 am
#34
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Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
We had similar discussion on the value of the $50 Saks Fifth Ave credit from AmEx Platinum card. This is CASH value, but only at Saks. For the few people who frequent Saks, this is great. But for the folks who frequent Costco, or even Walmart, the value of this credit is worth much less. For $50, they probably can get one dozen undie shorts or two dozens of socks. But they can only get two shorts and half dozen socks. They feel the same way regardless the brands.
The question is that, what is each thing worth to you, not anyone else. Burberry shirt vs Land's End shirt; Lamborghini vs Honda; $25,000 1st class with shower vs $1,000 regular air ticket; on and on. It is not the ticket (cash) price, but the economic value to each individual. This is very subjective.
The question is that, what is each thing worth to you, not anyone else. Burberry shirt vs Land's End shirt; Lamborghini vs Honda; $25,000 1st class with shower vs $1,000 regular air ticket; on and on. It is not the ticket (cash) price, but the economic value to each individual. This is very subjective.
Nov 25, 2018, 1:15 am
#36
Join Date: Nov 2018
Programs: Alaska, Marriot, Hilton, Avis
Posts: 25
Totally agree. Can we change the title to "What's the highest dollar/point conversion you've ever received from MR points" to keep the discussion objective?
Otherwise we'll end up talking about economics on a traveler forum which I would say its quite off-topic.
Otherwise we'll end up talking about economics on a traveler forum which I would say its quite off-topic.