Is the Business Platinum's 35% Pay with Points worth it?
Oct 8, 2019, 6:03 pm
#1
FlyerTalk Evangelist
Original Poster
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,900
Is the Business Platinum's 35% Pay with Points worth it?
I have about 160k MR points right now. I'm seriously thinking of getting the Business Platinum for this feature. Since using this feature allows me to book for flights and still earn elite status. I know it used to be 50%. I mainly fly international and wondering am is this a good deal compared to transferring to other airline programs? Only issue is award space, which is why I was never a big fan of award redemption. Cash is king. I'm just not sure how much value I'm getting with the Pay with Points feature.
Oct 8, 2019, 6:10 pm
#3
FlyerTalk Evangelist
Original Poster
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,900
Oct 8, 2019, 6:12 pm
#4
Join Date: Mar 2013
Location: EWR
Programs: World of Hyatt, Marriott Bonvoy, Hilton Honors, UA Mileage Plus
Posts: 1,255
The 35% rebate makes your points in theory worth ~1.5cpp each, similar to the Sapphire Reserve at least with flights. The issue is that you need points enough points to book your flight at a 1cpp ratio.
So, for example, your 160k MR could book you a $1600 flight and you’d receive 56k back. But you couldn’t book a $2400 flight and cover the expense with your 160k points.
So, for example, your 160k MR could book you a $1600 flight and you’d receive 56k back. But you couldn’t book a $2400 flight and cover the expense with your 160k points.
Oct 8, 2019, 6:16 pm
#5
FlyerTalk Evangelist
Original Poster
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,900
The 35% rebate makes your points in theory worth ~1.5cpp each, similar to the Sapphire Reserve at least with flights. The issue is that you need points enough points to book your flight at a 1cpp ratio.
So, for example, your 160k MR could book you a $1600 flight and you’d receive 56k back. But you couldn’t book a $2400 flight and cover the expense with your 160k points.
So, for example, your 160k MR could book you a $1600 flight and you’d receive 56k back. But you couldn’t book a $2400 flight and cover the expense with your 160k points.
Oct 9, 2019, 7:29 am
#7
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
When you use Pay with Points the full amount of the purchase is always charged to your card. Then, points are redeemed to generate a credit to offset all or a portion of the cost.
Last edited by mia; Oct 9, 2019 at 8:53 am
Oct 9, 2019, 7:56 am
#8
Join Date: Apr 2003
Location: ORD
Programs: AA ExPlat (2MM), Marriott LT Titanium
Posts: 291
This feature is the sole reason I continue to hold Biz Plat. The only redemptions I have made for 2+ years are transfers with bonus to BA for use mostly on US domestic AA flights and AmexTravel points redemptions with 35% back bonus. Booking this way also accrues miles and allows for upgrades where most award bookings do not.
If you are an AA flyer there’s an extra benefit in that there are “Insider Fares” that are changeable without a fee; albeit via calling Amex Travel which can be cumbersome and cost $39 per change. There’s a thread on this or AA forum that discusses those special fares.
If you are an AA flyer there’s an extra benefit in that there are “Insider Fares” that are changeable without a fee; albeit via calling Amex Travel which can be cumbersome and cost $39 per change. There’s a thread on this or AA forum that discusses those special fares.
Oct 15, 2019, 9:42 am
#9
Join Date: May 2011
Location: Dallas, Texas
Posts: 194
and if the pay with points 35% feature involves charging the card, then reimbursing as a credit later and using up MR points, doesn’t this increase the value of the redemption to more than 1.53cpp? You’re already getting the flight at 1/.65 = 1.53cpp, then additionally 5 MR per dollar spent? AND you collect miles directly with the airline?
Oct 15, 2019, 10:00 am
#10
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
1. It is correct that AA only makes SAAver inventory available to partners airlines.
2. You will not reliably earn 5 points per dollar on airline tickets purchased through Pay with Points, because the credit which offsets the charge will also offset the base points. You need to research this in the primary thread, because the card that you use to PAY for the ticket may earn a bonus, even though the base points are not awarded.
3. It's true that tickets purchased using Pay-with-Points will earn airline miles and status credit, but this is equally true for all card issuers' programs and it does not increase the value of American Express vs other options.
2. You will not reliably earn 5 points per dollar on airline tickets purchased through Pay with Points, because the credit which offsets the charge will also offset the base points. You need to research this in the primary thread, because the card that you use to PAY for the ticket may earn a bonus, even though the base points are not awarded.
3. It's true that tickets purchased using Pay-with-Points will earn airline miles and status credit, but this is equally true for all card issuers' programs and it does not increase the value of American Express vs other options.
Oct 15, 2019, 11:16 am
#11
Join Date: Nov 2013
Location: PHX, SEA
Programs: Avis President's Club, Global Entry, Hilton/Marriott Gold. No more DL/AA status.
Posts: 4,422
I decided it wasn't worth it because I find the personal plat credits to be more valuable. My math/logic might help you.
Personal Plat: $550 - $200 airline - $200 Uber - $100 Saks = $50 AF
Biz Plat: $595 - $200 airline = $395 AF based on my usage
For the $345 diff I need to redeem 69000 MR for flights every year to break even and that isn't realistic for me. Also, it isn't clear to me if the 5x points on flights works on flights booked directly with airlines.
Personal Plat: $550 - $200 airline - $200 Uber - $100 Saks = $50 AF
Biz Plat: $595 - $200 airline = $395 AF based on my usage
For the $345 diff I need to redeem 69000 MR for flights every year to break even and that isn't realistic for me. Also, it isn't clear to me if the 5x points on flights works on flights booked directly with airlines.
Oct 15, 2019, 12:03 pm
#13
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
Oct 15, 2019, 12:12 pm
#14
Join Date: May 2015
Location: LAX, BUR
Programs: AS,AA,JB, HH Gold, Starriott Titanium Elite, Hyatt Explorist, Global Entry
Posts: 1,933
I decided it wasn't worth it because I find the personal plat credits to be more valuable. My math/logic might help you.
Personal Plat: $550 - $200 airline - $200 Uber - $100 Saks = $50 AF
Biz Plat: $595 - $200 airline = $395 AF based on my usage
For the $345 diff I need to redeem 69000 MR for flights every year to break even and that isn't realistic for me. Also, it isn't clear to me if the 5x points on flights works on flights booked directly with airlines.
Personal Plat: $550 - $200 airline - $200 Uber - $100 Saks = $50 AF
Biz Plat: $595 - $200 airline = $395 AF based on my usage
For the $345 diff I need to redeem 69000 MR for flights every year to break even and that isn't realistic for me. Also, it isn't clear to me if the 5x points on flights works on flights booked directly with airlines.
"Get up to $200 in statement credits annually for U.S. purchases with Dell. Enrollment required.‡"
Oct 15, 2019, 12:41 pm
#15
Join Date: Nov 2013
Location: PHX, SEA
Programs: Avis President's Club, Global Entry, Hilton/Marriott Gold. No more DL/AA status.
Posts: 4,422
In other words, I could probably spend it but more as as sunk cost than a value.