new low for redemption rates?
Apr 21, 2016, 12:04 pm
#1
Original Poster
Join Date: Jan 2014
Posts: 148
new low for redemption rates?
maybe i've been living under a rock for the last 6 months or so, but i'm looking through flight for a domestic trip and i'm finding some insanely crazy redemption rates -- crazy low.
i'm seeing rates of <0.9cent/mile on both coach and first fares for a seemingly routine flight. usually i think these hovered at least in the 1.2cent/mile category, which i always considered was crazy low.
if anyone wants the specific routes i can write them up, but i was just wondering if this is a new standard that's going to be around from now on?
i'm seeing rates of <0.9cent/mile on both coach and first fares for a seemingly routine flight. usually i think these hovered at least in the 1.2cent/mile category, which i always considered was crazy low.
if anyone wants the specific routes i can write them up, but i was just wondering if this is a new standard that's going to be around from now on?
Apr 21, 2016, 12:14 pm
#2
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DL has a sale on D1 award tickets to Europe, roughly covering summer and early fall, that IIRC ends today. Prices are 105,000 miles from the eastern USA and 115,000 from the west.
Apr 21, 2016, 12:17 pm
#3
Join Date: Jun 1999
Location: NYC/LA
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Posts: 7,486
I think various indications over the past few years (pay with miles, pay for Sky Club drinks with miles, etc.) suggests that the end-game for Delta is somewhere around the 1 cent/mile point.
Apr 21, 2016, 12:24 pm
#4
Original Poster
Join Date: Jan 2014
Posts: 148
i thought the same thing, that they slowly creep from 2->1.6->1.4 and eventually to 1 cent per mile, i guess i'm actually shocked to see that they dip below 0.9.
Apr 21, 2016, 12:27 pm
#5
Join Date: Sep 2002
Location: ATL
Programs: DL SkyMiles, MR, HH, ICH/PC, Avis Pref., Hertz Gold
Posts: 2,897
In February, I found domestic ATL-TPA award seats for 15K R/T. Lowest cash price for the itin. was $209 R/T at the same time. That's 1.4 CPM, which is a pretty good rate.
PWM sets the par redemption rate at 1 CPM so anything more these days is a good deal and anything less you should use PWM.
PWM sets the par redemption rate at 1 CPM so anything more these days is a good deal and anything less you should use PWM.
Apr 21, 2016, 12:33 pm
#6
Original Poster
Join Date: Jan 2014
Posts: 148
not that i would ever buy $11K european fare out of pocket to begin with, but that's an excellent redemption rate that someone could claim.
Apr 21, 2016, 12:43 pm
#8
Original Poster
Join Date: Jan 2014
Posts: 148
i can see this being great for delta, but somehow i can't see this being great for their CC partner AMEX. at this point, i'm not sure why anyone would get the DL/AMEX cobranded card where the redemption rate is starting to dip below 1cent, while on the AMEX one the points are worth 1+ cent through amex directly. maybe that's a discussion for another forum.
In February, I found domestic ATL-TPA award seats for 15K R/T. Lowest cash price for the itin. was $209 R/T at the same time. That's 1.4 CPM, which is a pretty good rate.
PWM sets the par redemption rate at 1 CPM so anything more these days is a good deal and anything less you should use PWM.
PWM sets the par redemption rate at 1 CPM so anything more these days is a good deal and anything less you should use PWM.
Apr 21, 2016, 12:44 pm
#9
Original Poster
Join Date: Jan 2014
Posts: 148
no i meant low as in terrible. a $319 ticket is coming out to be 50K in miles for coach, a ~500$ ticket is first is priced at 100+K miles.
Apr 21, 2016, 12:47 pm
#10
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I'm shocked that discounted TATL business class tickets have gotten so expensive.
Apr 21, 2016, 12:49 pm
#12
Join Date: Dec 2009
Location: RDU
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Posts: 3,226
Got upgraded on 3/4 flights too...
Apr 21, 2016, 1:14 pm
#13
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Join Date: Jul 2003
Posts: 23,051
And I can see a number of routes that go for $600 one-way (no matter how far out you book them), and yet I can find 12,500 mile one-way awards on them. Sorry, just not seeing any identifiable correlation between price and mileage amount. Any if you look on the west coast, you can find one-way awards in the 3500 - 7500 range.
Last edited by xliioper; Apr 21, 2016 at 1:19 pm
Apr 21, 2016, 3:14 pm
#14
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Join Date: May 1998
Location: Kansas City, MO, USA
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It's easy to find routes where the redemption rate is terrible ... my experience over the past few months has been incredibly positive quite frankly, the award calendar actually seems to function, there seems to be increasing availability at lower redemption levels, and the low redemption levels have moved lower (e.g., I was able to book MCI-MCO non-stop for 15k round-trip ... then I was able to book MCI-ATL/MSP/DTW-MCO flights for 15k round-trip too (the non-stop is seasonal and Saturday only)).
You also have to consider that for PM/DM members award tickets have the added flexibility of being cancellable/changeable for no fee up to 72 hours in advance of departure. So, on the same MCI-MCO round-trips I mentioned previously ... I could buy those tickets for $230 or so, but they are non-refundable/$200 change fee, and for my situation the flexibility does have value to me. In other words, I don't think it's fair to say my 15k mile award is worth $230/15k miles = 1.5 cpm because the $230 is non-refundable while the 15k miles is refundable, it's just not apples to apples.
The D1 fare sales mentioned previously to Europe are nice too and I've been shocked by the availability, but the 7 day minimum stay on the recent ones is a bit much for me right now (hopefully not once my kids get older ...).
You also have to consider that for PM/DM members award tickets have the added flexibility of being cancellable/changeable for no fee up to 72 hours in advance of departure. So, on the same MCI-MCO round-trips I mentioned previously ... I could buy those tickets for $230 or so, but they are non-refundable/$200 change fee, and for my situation the flexibility does have value to me. In other words, I don't think it's fair to say my 15k mile award is worth $230/15k miles = 1.5 cpm because the $230 is non-refundable while the 15k miles is refundable, it's just not apples to apples.
The D1 fare sales mentioned previously to Europe are nice too and I've been shocked by the availability, but the 7 day minimum stay on the recent ones is a bit much for me right now (hopefully not once my kids get older ...).
Apr 21, 2016, 4:00 pm
#15
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Availability seemed better for 8-10 day stays when I was searching.