Has LM increased the CPM of the "cash" miles?
May 24, 2013, 10:03 pm
#61
Join Date: May 2013
Programs: AA 2MM, Lifemiles 1.5M, UAL, Marriott Plat.
Posts: 18
I agree! When I saw this I ran to try to find where this would affect me and didn't find any relevant route (at least for me! out of Colombia). I've been following this for sometime trying to understand and learn the "tricks" and got quite scared with this "devaluation" but I didn't find any real changes on the tables (out of Colombia at least!). As for buying miles I never really understood why pay real money for miles when you can get them for "free". Avianca is pretty generous with their bonuses (at least comparing with LAN and Copa). So why buy miles? you can get tones of them by flying or using their CC (2 miles per Dollar). So I'm still struggling to understand why this is being treated as massive devaluation! Please help to understand.
I like Avianca and I will continue to fly them as long as I am given the gifts of health and air travel either by business or pleasure while Avianca gets me safe and sound from A to B.
May 24, 2013, 10:18 pm
#62
Join Date: May 2012
Posts: 11
Yep...I've been following for a year but not many posts!
This paying for miles I trully don't get. I'm not sure where my math goes wrong...
A domestic ticket in Colombia is 7,000 miles so if you buy the miles you need to pay $87.50 = 7,000 x 0.0125 (plus taxes), can you get a domestic for less than $87.50? Hell yeah! I just quoted Bogota - Cali for $56 tax included!! So why pay $30 extra?
This paying for miles I trully don't get. I'm not sure where my math goes wrong...
A domestic ticket in Colombia is 7,000 miles so if you buy the miles you need to pay $87.50 = 7,000 x 0.0125 (plus taxes), can you get a domestic for less than $87.50? Hell yeah! I just quoted Bogota - Cali for $56 tax included!! So why pay $30 extra?
May 25, 2013, 12:08 am
#63
Join Date: Jul 2011
Location: Melbourne
Programs: Velocity Gold
Posts: 1,069
Yep...I've been following for a year but not many posts!
This paying for miles I trully don't get. I'm not sure where my math goes wrong...
A domestic ticket in Colombia is 7,000 miles so if you buy the miles you need to pay $87.50 = 7,000 x 0.0125 (plus taxes), can you get a domestic for less than $87.50? Hell yeah! I just quoted Bogota - Cali for $56 tax included!! So why pay $30 extra?
This paying for miles I trully don't get. I'm not sure where my math goes wrong...
A domestic ticket in Colombia is 7,000 miles so if you buy the miles you need to pay $87.50 = 7,000 x 0.0125 (plus taxes), can you get a domestic for less than $87.50? Hell yeah! I just quoted Bogota - Cali for $56 tax included!! So why pay $30 extra?
May 25, 2013, 4:05 am
#64
Join Date: Nov 2011
Posts: 6,385
Yep...I've been following for a year but not many posts!
This paying for miles I trully don't get. I'm not sure where my math goes wrong...
A domestic ticket in Colombia is 7,000 miles so if you buy the miles you need to pay $87.50 = 7,000 x 0.0125 (plus taxes), can you get a domestic for less than $87.50? Hell yeah! I just quoted Bogota - Cali for $56 tax included!! So why pay $30 extra?
This paying for miles I trully don't get. I'm not sure where my math goes wrong...
A domestic ticket in Colombia is 7,000 miles so if you buy the miles you need to pay $87.50 = 7,000 x 0.0125 (plus taxes), can you get a domestic for less than $87.50? Hell yeah! I just quoted Bogota - Cali for $56 tax included!! So why pay $30 extra?
By the way, welcome to flyertalk!
May 25, 2013, 7:15 am
#65
Join Date: Mar 2012
Location: FRA
Posts: 614
Question: Would you book Europe-NRT right now with the new Number of Miles needed and the higher Cash-Part? Or would you wait for a few days and see how things work out?
I just checked and its more Miles (195k instead of 160k) and more Money (16XX instead of 13XX) needed for my Flight..
So what shall I do best?
I just checked and its more Miles (195k instead of 160k) and more Money (16XX instead of 13XX) needed for my Flight..
So what shall I do best?
May 25, 2013, 8:27 am
#66
Suspended
Join Date: Apr 2011
Programs: RIP
Posts: 506
Question: Would you book Europe-NRT right now with the new Number of Miles needed and the higher Cash-Part? Or would you wait for a few days and see how things work out?
I just checked and its more Miles (195k instead of 160k) and more Money (16XX instead of 13XX) needed for my Flight..
So what shall I do best?
I just checked and its more Miles (195k instead of 160k) and more Money (16XX instead of 13XX) needed for my Flight..
So what shall I do best?
May 25, 2013, 2:14 pm
#69
Join Date: Mar 2011
Location: FL
Programs: AAdvantage Elite Plat, HH Gold, SPG Gold, Hertz Gold, BA
Posts: 498
Going back to your statement, it probably is a new game for Lifemiles and I guess they never expected those redemptions, say MEL-LHR or SIN-FRA in J. And that is why they adjusted the prices. I don't blame them for the correction as this is way too expensive. But they should have done a good job and educate themselves in how alliances work or by talking to either LH or SQ airlines, and giving advance notice to these new customers.
May 26, 2013, 4:33 am
#72
Join Date: Sep 2005
Location: SIN
Programs: SQ, UA, Delta, BMI(RIP), Marriott Lifetime Titanium, Hilton Diamond (Thanks Amex) Hyatt Discov
Posts: 1,942
My sense is that BMI lost money and was gobbled up by BA (for its LHR slots, I guess) but that had nothing to do with them selling BMI Diamond Club miles and then allowing great redemptions with other * alliance airlines.
I don't think Lifemiles would suffer financial losses if it sold Lifemiles at 1.5 cents per mile and then had to buy seats from other * alliance carriers for redemptions
May 26, 2013, 10:28 am
#73
Join Date: Nov 2011
Posts: 6,385
BMI, until it died (RIP!!) had an almost similar Cash plus Miles redemption chart, and like Lifemiles, had access to * alliance inventory one could not find using other * alliance frequent flyer programs.
My sense is that BMI lost money and was gobbled up by BA (for its LHR slots, I guess) but that had nothing to do with them selling BMI Diamond Club miles and then allowing great redemptions with other * alliance airlines.
I don't think Lifemiles would suffer financial losses if it sold Lifemiles at 1.5 cents per mile and then had to buy seats from other * alliance carriers for redemptions
My sense is that BMI lost money and was gobbled up by BA (for its LHR slots, I guess) but that had nothing to do with them selling BMI Diamond Club miles and then allowing great redemptions with other * alliance airlines.
I don't think Lifemiles would suffer financial losses if it sold Lifemiles at 1.5 cents per mile and then had to buy seats from other * alliance carriers for redemptions
May 26, 2013, 12:30 pm
#74
FlyerTalk Evangelist
Join Date: Oct 2011
Location: Anywhere I need to be.
Programs: OW Emerald, *A Gold, NEXUS, GE, ABTC/APEC, South Korea SES, eIACS, PP, Hyatt Diamond
Posts: 16,046
That was ONLY the miles + money component.
As such, the net cost for 1k miles was really (15*.4) + (12.75*.6) = 13.65/1k
15/13.65 = 1.09.
Hence, mileage cost (net) only went up by 9%.
With the award increases, the changes are multiplicative, so keep that in mind.
So, a 25% increase in one route is really a 35% increase in net cost.
May 26, 2013, 12:32 pm
#75
FlyerTalk Evangelist
Join Date: Oct 2011
Location: Anywhere I need to be.
Programs: OW Emerald, *A Gold, NEXUS, GE, ABTC/APEC, South Korea SES, eIACS, PP, Hyatt Diamond
Posts: 16,046
Some of my friends still dont get it. When I tell them I can use miles to get a business class ticket to Europe, they tell me" But why? you can get two coach tickets instead!!!". I guess they don't buy the concept of upper class. It took me a while to see "the light".
Going back to your statement, it probably is a new game for Lifemiles and I guess they never expected those redemptions, say MEL-LHR or SIN-FRA in J. And that is why they adjusted the prices. I don't blame them for the correction as this is way too expensive. But they should have done a good job and educate themselves in how alliances work or by talking to either LH or SQ airlines, and giving advance notice to these new customers.
Going back to your statement, it probably is a new game for Lifemiles and I guess they never expected those redemptions, say MEL-LHR or SIN-FRA in J. And that is why they adjusted the prices. I don't blame them for the correction as this is way too expensive. But they should have done a good job and educate themselves in how alliances work or by talking to either LH or SQ airlines, and giving advance notice to these new customers.
(as in, more metal is redeemed on these airlines than these airlines redeem on other metal.)
As for AV I don't usually fly *A to SA as they are weaker there, and most of my SA flying, if I have to go there, has been to deep SA (Chile, Argentina, Brazil.)