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I'm becoming more of a fan of points-based programs, the latest fave being FlexPerks (the thing U.S. Bank did when the NW/DL merger left them without a mileage-granting card).
Pros with FlexPerks: * each point worth up to 2 cents (20K = ticket up to $400, 30K = $600, etc.) * no redemption/booking fees and you get $25 reimburseable allowance for airline junk fees, food, etc. * a standing double-points offer on certain purchases and occasional promos to really boost the total. * Free tickets count as paid tickets, so you can get upgrades and they earn miles (this is huge, especially for elites). Cons: * No cash + points option. You can't use the 20K for a $400 credit against a $500 ticket and pay the extra $100. You have to book entirely with points at 20K minimum, so chances are you're not getting full bang for your points. (You *could* redeem for a travel cert, but at a less generous 1 cent per point) * Points expire 5 years from when they were earned, if not redeemed. * Would seemingly be easier to devalue or otherwise "enhance." Basically if you're a travel-shopping and deal hunting junkie and you love to travel and can plan it to maximize mileage return you can do very well with a points-based program, albeit at a real cost in research time (as always) to bag the deals. |
Originally Posted by Efrem
(Post 14978924)
Depends on what you'd use the points/miles for and how much that is worth to you. The real worth is no more than it would cost to buy whatever it is, but may be less.
Example: Two months ago I redeemed 200,000 AA miles for two round-trip business class tickets BOS-CDG. Economy tickets were over $650 each at the time. I probably would have paid about $1,500 each for the J tickets: way less than the published fare, but a good deal more than the economy fare. That made the miles worth 1.5¢ each, or very slightly less since I would have earned miles on a paid ticket. Since I don't know of a cash-back card that offers a rebate that high, taking the miles in that case worked out better. Folks sometimes use the published fare to evaluate how much they got for their miles. As any economist will tell you, if you wouldn't pay it, it's irrelevant. Its major value in this context is to make people feel good about the great deal they got by using miles. If SAAver award seats hadn't been available, I wouldn't have used 400,000 miles for that trip. We would have gone anyway, but in the small seats. So: If you go for the miles, how will you use them? And what is that worth to you? |
Originally Posted by ajnaro
(Post 14999261)
You might bear in mind that had you actually paid for the tickets, you would have received the mileage flown (with at least 25% bonus for business class, perhaps double miles based on status) as well as credit card mileage and status mileage. So there is some value lost when use mileage for tickets that should be taken into account.
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I tend to use my points for hotel awards... for instance, 75,000 AAdvantage miles gets you 150,000 HHonors points, which is enough for a 4day stay at the Molino Stucky in Venice (where I'll be next week - a $1300 value), or the Cavalieri in Rome or any of the London properties, an even greater value. I can generally find a good airfare wherever I'm going and it's generally far less than what a top tier hotel stay would be, plus there's the benefit of earning miles.
Also, by using my HHonors Surpass card I earn 3, 6 or 9pts per dollar spent and with 20K spend during the year I maintain Gold status without having to pay for a single night. |
Originally Posted by Ispolkom
(Post 14982018)
Why does it have to be one or the other? Other cards come out of the desk drawer when depending on the situation. Miles are good, cash is good. I think I derive some benefit from diversification
DL reserve is worth 3-5% in value for the first 60k. then it drops down You can get 5% cash back from other cards. My rule is for 2% vs SPG - I go with SPG. For 3% I am not sure, but for 4-5%, go with the other card. Lastly sign up promos and double promos are always good. Use them first. |
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