I personally value my Skymiles at ~$0.01/mile and my MQMs at ~$0.02/MQM.

• The ~$0.01/mile is based on the ability to purchase tickets using PWM and redeem miles for gift cards.
• The ~$0.02/MQM is more subjective and is based on my extra yearly costs for leisure flights where I decide not to redeem miles (either because I need MQMs for re-qualification, or I want to reach a particular threshold award, or both).

Because my MQM valuation is quite subjective, I am not very happy with it. Obviously DL sells MQMs to AMEX but I have no idea at what cost. Hence, here are my questions:

1. Is there a better way to estimate the value of a MQM?
2. If yes, what value do you assign a MQM?

This is just opinion on my part but 3 points:
1. For us 'mortals' the value of an MQM is probably a fair bit higher than 0.02 - with the exception of special promos I don't think even the best MRs get the MQM cost that low.
2. Amex is in a unique position with DL - DL owes them a LOT of money and a lot of it is in 'shadow books' as pre-paid miles. I would imagine Amex is getting a pretty good deal on the MQM they provide and its probably being measured in a RDM miles to EQM ratio.
3. Hilton is the only non Amex outsider that has awarded MQM at this point but it did so in relatively small pockets so it was probably not too much of a stretch for DL to let them do it. After all it was only 500 MQM at a shot - awfully hard to make meaningful progress against 25K thresholds and even at that point that promo came with some strings. (2 night min - minimizing Mattress run potential). I'll be very interested to see if that offer makes a

I think EQM and Award miles have the same value since:
EQM get you status benefits ( but only for FF'ers so a onetime flyer doesn't have any value in them )
Award miles gets you awards, ( also for onetime flyers since there are thousands of different awards)
That's my opinion.

The cost of a RDM is about 1.5-2c each. If you get a credit card that gives you cash back, you will get 1.5c -2c.
If you choose the DL Amex instead, you are getting 1 mile instead = 1.5-2c in opportunity cost to you.

If you choose to use it for PWM then you are getting 1c value out of it. May I suggest that you get a cash back card instead. You will get MQMs when you use the cash for travel as well.

If you use it for last minute awards, then you are getting 2-3c value per mile, which is more useful.

1 MQM is worth about 3-5c. e.g., WAS-LAX travel on Feb5-7 is 200$ = 5000 MQM.
this works out to about 4c/MQM, which is my typical ratio of value. Very rarely do I get better value than that.

I do not usually do mileage runs as my time has value too. With the double MQMs etc, one can get MQMs for 2c,
but that is entirely unpredictable, as my travel is based on my work and not the airline bonuses.

If use my SPG card, I get 1 point instead of 2c cash back from Schwab. SPG to me is 2c each in cost.
The value may be more depending on usage.
If I use my SPG to get DL miles, I get the cost of a RDM down to 1.6c each, if I use the 20k-5K bonus.

I bought all the miles I could with the DL 100% transfer bonus in April 2009 (at 1.1 c each) and
the US miles share buy gift 100% bonus - (1.35c each). I can always use my cash back card if I have too many miles.

To me 1 MQM = 2 -3 RDM or 2 SPG in cost to acquire. Also I have to travel to get MQMs usually,
so it needs a lot more effort than charging credit cards for RDMs.

This analysis of the value of miles in a FF program probably makes the most sense to me of any I have seen on this forum. By that I meen the logic makes sense. Of course different people will have different motivation and objects and the value to them may differ.

Thanks for a thoughful analysis!

I had a MR last year SEA-ATL-BUF vv same day turn for $145. 2.5c/MQM. Wasn't a bad deal. Got upgraded on 3/4 legs as an FO on a T fare

You make some very good points. When I think back, I have mostly redeemed miles for F/BE tickets and a few times for gift cards. Hence, your analysis of 1.5 - 2 cent/RDM makes more sense than my 1 cent/RDM.

Regarding the value of MQMs, for me using the price of a MR does not make a lot of sense since I have only done two MR in the last 6 years (once to maintain PM and another time last summer when they had that crazy $250+tax offer for LAX-ZRH-LAX). In any case I agree with you that the cost of MQMs rarely drops below $0.04/MQM as can be seen at http://www.farecompare.com/search/flyertalk.html .

Using the cost of a mileage run ticket versus the MQM's earning gives you the cost of the MQM's not their value. Once you have made Diamond status extra MQM's have no value except for any bonuses that may or may not be offered.

The question is how much is the higher status worth to you. If you are a big person or very tall the wider seats in the forward cabin may be worth more than someone a lot smaller flying on their own dime.

Person
True. To a 12 year old, the gift of MQMs or status is useless. The seat is plenty big and hey, just flying is great!

Current Status
But the value of MQMs also varies with where you are. If you are a high silver 40k travel, you get 25% bonus - 10k
If you go to GM, you get 100% RDM bonus -40k = 30k extra RDM Here 1 MQM = 2 RDMs PLUS all the extra upgrades.

e.g., let us say that this year I have ~ 180k = If I lose 15k, I lose 25k threshold reward already, PLUS I lose the ability to roll over these and start 2010 at 55k instead of 40k. I think my MQMs my family is giving me is worth 2 SPG each.

Location
Also, if you are from a small town, all you need is SM/FO to get exit rows and preboard.
If you live in ATL/LAX/JFK/MSP/DTW/SLC/CVG, and travel at peak times, just being a PM may be useless.
You may need DM plus Reserve Plus ?B fare to be almost certain of upgrades.

Time
The worst time for upgrades is also Jan/Feb before the downgraded elites drop off the list.

Waiting for upgrade
The difference between being upgraded 5 days out and 1 day out - dealing with the uncertainty

Anyway, it is all an imponderable like life.