Burn or Buy, that is the question
Dec 3, 2009, 8:02 am
#1
Original Poster
Join Date: Sep 2008
Posts: 701
Burn or Buy, that is the question
For the exact same flights:
(a) Purchase ticket = ~$900 (with taxes) but earn ~30,000 miles (including bonus/status miles)
(b) Reward ticket ~80,000 + ~$150 in taxes
(c) Pay-with-points is ~72,000 + ~$180 in taxes
I currently don't have pay-with-points and it's not worth the hassle for $50
If you value a Skymile at US$0.01 each then the "cost" = $600(a) vs $950(b) vs $900(c)
Therefore the Skymile break even between purchase and reward is $0.0068
I don't like going below 1 cent per mile, but I'm not a fan of shelling out $900 when I don't have to either.. ..thoughts, comments, other ideas?
NOTE: Purchasing a ticket will not impact 2010 status level
(a) Purchase ticket = ~$900 (with taxes) but earn ~30,000 miles (including bonus/status miles)
(b) Reward ticket ~80,000 + ~$150 in taxes
(c) Pay-with-points is ~72,000 + ~$180 in taxes
I currently don't have pay-with-points and it's not worth the hassle for $50
If you value a Skymile at US$0.01 each then the "cost" = $600(a) vs $950(b) vs $900(c)
Therefore the Skymile break even between purchase and reward is $0.0068
I don't like going below 1 cent per mile, but I'm not a fan of shelling out $900 when I don't have to either.. ..thoughts, comments, other ideas?
NOTE: Purchasing a ticket will not impact 2010 status level
Last edited by MyTravels; Dec 3, 2009 at 8:21 am Reason: clarify bonus/status miles
Dec 3, 2009, 8:06 am
#2
Join Date: Nov 2005
Location: NYC
Programs: Delta DM, SPG Plat, Hyatt Diamond, MTA Rust, Hertz Five Star something or other
Posts: 2,858
For the exact same flights:
(a) Purchase ticket = ~$900 (with taxes) but earn ~30,000 miles (including status miles)
(b) Reward ticket ~80,000 + ~$150 in taxes
(c) Pay-with-points is ~72,000 + ~$180 in taxes
I currently don't have pay-with-points and it's not worth the hassle for $50
If you value a Skymile at US$0.01 each then the "cost" = $600(a) vs $950(b) vs $900(c)
Therefore the Skymile break even between purchase and reward is $0.0068
I don't like going below 1 cent per mile, but I'm not a fan of shelling out $900 when I don't have to either.. ..thoughts, comments, other ideas?
NOTE: Purchasing a ticket will not impact 2010 status level
(a) Purchase ticket = ~$900 (with taxes) but earn ~30,000 miles (including status miles)
(b) Reward ticket ~80,000 + ~$150 in taxes
(c) Pay-with-points is ~72,000 + ~$180 in taxes
I currently don't have pay-with-points and it's not worth the hassle for $50
If you value a Skymile at US$0.01 each then the "cost" = $600(a) vs $950(b) vs $900(c)
Therefore the Skymile break even between purchase and reward is $0.0068
I don't like going below 1 cent per mile, but I'm not a fan of shelling out $900 when I don't have to either.. ..thoughts, comments, other ideas?
NOTE: Purchasing a ticket will not impact 2010 status level
Dec 3, 2009, 8:24 am
#4
Join Date: Jun 2004
Location: BNA
Programs: DL FO - CO Gold
Posts: 618
It's very difficult to decide whether to use miles or cash these days, because we have no idea what the miles will be worth in the future. Skymiles are certainly worth a lot less than just a few months ago. After the full merger, the value may return, but I'm betting it won't. I burned almost all my miles and I'm glad I did.
Dec 3, 2009, 8:25 am
#5
Original Poster
Join Date: Sep 2008
Posts: 701
Totally depends on your personal situation. Are you low on cash? If not, spending $900 on ~30,000 status miles is a great deal and you can roll them over to 2010 qualification. I believe this is a coach long haul ticket, so I certainly wouldn't use miles unless I was broke and had no other option.
15,000 would be MQM's (the other 15,000 are bonus miles), and as noted, the MQM's won't impact 2010 status.
Dec 3, 2009, 8:28 am
#6
FlyerTalk Evangelist
Join Date: Aug 2001
Location: Finally back in Boston after escaping from New York
Posts: 13,644
Without knowing too many details, I would choose option A or C, likely in that order. Option B values 8,000 miles at $30, which is too low.
Mike
ETA: Never mind, I'd choose Option A. You come out 102,000 miles to the good (72,000 miles for C plus the 30K you'd earn for A) for $750. 102,000 miles is a biz ticket intl'y.
Mike
Mike
ETA: Never mind, I'd choose Option A. You come out 102,000 miles to the good (72,000 miles for C plus the 30K you'd earn for A) for $750. 102,000 miles is a biz ticket intl'y.
Mike
Dec 3, 2009, 8:34 am
#7
FlyerTalk Evangelist
Join Date: Sep 2005
Location: MN
Programs: Lots of programs, dirt on all of them!
Posts: 11,938
Remember, by taking option (b) you not only use 80K miles, you forgo 30K miles.
You didn't say where the ticket is from/to but could you use option (b) and use more miles for an F or J ticket instead? That might give you a better "return" if that is what you are looking for.
I still value my Skymiles at more than 1 cent/mile but I am extremely flexible with most of my award travel. And I usually start looking for award seats up to 11 months in advance. But I know the time will come when all I will have is delta.dumb and the inevitable will come when it will become next-to-impossible to get low level award tickets. Then my presumed value will probably decrease.
You didn't say where the ticket is from/to but could you use option (b) and use more miles for an F or J ticket instead? That might give you a better "return" if that is what you are looking for.
I still value my Skymiles at more than 1 cent/mile but I am extremely flexible with most of my award travel. And I usually start looking for award seats up to 11 months in advance. But I know the time will come when all I will have is delta.dumb and the inevitable will come when it will become next-to-impossible to get low level award tickets. Then my presumed value will probably decrease.
Dec 3, 2009, 8:46 am
#8
Join Date: Oct 2008
Posts: 1,559
I would keep in mind that DL miles are devaluing like Zimbabwean dollars. If you are hoarding miles away for future international F/J travel, I would take a look at the current redemption levels for your likely destinations, as you may be surprised if you haven't looked in awhile.
In general I wouldn't go for the award ticket based on the details provided, but there have been times in the past where I have cashed in for less than optimal value, simply because I wasn't in the mood to spend the $$$.
In general I wouldn't go for the award ticket based on the details provided, but there have been times in the past where I have cashed in for less than optimal value, simply because I wasn't in the mood to spend the $$$.
Dec 3, 2009, 8:53 am
#9
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Join Date: Oct 2005
Location: Ponte Vedra Beach, FL
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Dec 3, 2009, 8:54 am
#10
Join Date: Nov 2005
Location: NYC
Programs: Delta DM, SPG Plat, Hyatt Diamond, MTA Rust, Hertz Five Star something or other
Posts: 2,858
I wasn't referring to 2010 status- I was referring to 2011 qualification. DL now has rollover so, since you've already qualified for this year, those 15k MQMs will roll over and be valid to your 2011 qualification. A great benefit IMO.
Dec 3, 2009, 9:02 am
#11
Join Date: Jun 2005
Posts: 219
AndyTLe, if you don't mind divulging, where are you going that the tickets were $11,200 pp and you could snap them up for only 100,000 miles? Or is it for near-term travel? Even tickets to Africa go for 120,000 miles and don't usually cost quite that much.
Dec 3, 2009, 9:18 am
#12
FlyerTalk Evangelist
Join Date: Oct 2005
Location: Ponte Vedra Beach, FL
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ORF-CDG next summer. Nothing exotic. I was surprised at how expensive it priced out. There were cheaper itineraries (in the $4-5,000 range) but the exact same itinerary as the one booked using SMs priced out to be $11,200 + fees.
Dec 3, 2009, 11:30 am
#13
Original Poster
Join Date: Sep 2008
Posts: 701
Last edited by MyTravels; Dec 3, 2009 at 11:45 am
Dec 3, 2009, 8:12 pm
#15
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Post the itin you want and we can help you further.
I wouldn't burn 80K miles for a $900 ticket. But then again, depends if you need the EQM.
I wouldn't burn 80K miles for a $900 ticket. But then again, depends if you need the EQM.