Logically speaking, that is completely incorrect. (It's also completely incorrect mathematically since you're calling $0/110,000 infinity, when it is really zero so you're really arguing that the points have zero value.) If you pay $2000 for the 110k points, they are still be worth $1100 in travel reimbursement so you overpaid by quite a bit. If you pay $1000 for the 110k points, they are still worth $1100 in travel reimbursement. That's a $100 surplus for the consumer. If you pay $500 for the 110k points, they are still worth $1100 in travel reimbursement. That's a $600 surplus for the consumer. Now, if you pay $0 (which is what is happening here) for those 110k points, they are still worth $1100 in travel reimbursement. The price paid does not directly determine the value of an item. The value of an item can determine the price since people try to pay less than the value so as to maximize their surplus. If an item is priced well under its value, many customers will take advantage. That is what Cap One is doing here - they are pricing the $1100 at $0 and trying to attract as many customers as they can up to whatever their internal limit is. But the $1100 is still worth $1100 even if we pay $0 for it.

Infinite <> Zero. I'm certainly not arguing that the miles have zero value.

The miles can be spent in unlimited amount of ways and doesn't always equate to a specific figure, because each person using it will have a different end result, with the value of the miles being different for everyone's case. Hence, my argument for infinite cents p/ dollar. I'm standing by the people who love the flexibility of this program.

Case 1
User 1: Buys a $1,000 flight from SFO to LHR and the mileage on the flight pushes them to Star Alliance Gold status.

User 2: Buys the same $1,000 flight from SFO to LHR but the flight doesn't change their status, nor do they fly again.

Yes, they both spent it the same way, but how can you argue that the same $1,000 spent in this scenario would be "equal" in value? Price, yes, value (relative worth) - no way. Though they paid the same amount, in the end, User 1 is going to get a whole year of benefits not applicable to User 2.

Case 2
If Capital One all of a sudden decides that with 100,000 Venture miles, a card holder can book an around-the-world ticket with a participating airline, can you really equate those 100,000 miles to $1,000? I think not.

Case 3
Let's take inflation into account and say that 100,000 is spent specifically towards travel reimbursement. Would a user spending it in 2015 get the same things as those using it in 2011. My guess is no, and inflation will drive the cost of each mile down the longer it sits in a person's account.

The possibilities are endless with how you can use these miles and people will use it in various ways. I believe the program itself will change and evolve over time and along with it, the value of a dollar will fluctuate. With all of this variability, I can't subscribe to the theory that 1 mile is always going to equal 1 cent.

Okay, enough trying to argue my point, as this isn't the forum to do so. Apologies to all FT'ers. I do hope someone shares the same opinion as I do, otherwise, I'm just making a fool of myself. :D

For $1,100 worth of travel, whether you use Priceline or book directly with the travel provider, you can spend either 110,000 bonus points or 110,000 cents.

I just can't wrap my mind around the argument that one's ability to spend 110,000 points on Priceline in lieu of paying $1,100 in cash to Priceline makes the points worth more than $1,100.

I see your point, -- there's a different between economic redemption value (.01) & the perceived 'value' of these 'miles,' -- either way, you are getting whatever value you deem -- is derived!

In my case, I have opted for the $900 Hyatt gift cert (for 51,250 'miles'), so for me, -- I will be deriving more than $512.50 worth of value with this, as I will be applying it towards a stay in BKK (w/a diamond suite upgrade!)^ I would be staying at this property anyway, so I'm happy to be able to have it covered by this bennie from C1!:cool: (I'm thinking about ordering another cert, but given that it needs to be used within 15 mths of issuance & consumed in one stay, -- I'm not clear that I will get the 'value' from it, at this point).

No we do. I chuckled at the calculation of infinite value and the fact you would have to defend mathematics. For my part the points been made.

It is the defining difference between an exchange rate and value in economics. For me it simply means redeeming two tickets to Asia instead of one from the same point base.

I just returned from BKK Christmas Day and used to live off Thanon Petchburi. If I can be of assistance please feel free to PM me.

@bigbuy, Thanks for the examples. I think this thread would probably benefit from more posts like this showing folks actual redemptions. In this point I agree with Johnep1. I'm always surprised by the creativity and knowledge of my fellow FTers.

My best to all with all of your redemptions.

I had an interesting thought on how to cash out the points...

A reimbursement program like SkyGuide Executive Club costs $29.95 to start up, provides up the $50.00 lounge reimbursements (up to 12/year). So, charge the one-day pass to the C1 card, submit the receipt for reimbursement to SkyGuide, and in the meantime allocate points to the card to pay the day pass fee. About a month later, you get a nice $50.00 check that's yours to keep :D

Consider this scenario:
Book $1,100 worth of travel using the Capital One Link for Priceline.
Earn 4 BONUS points per $ in addition to the normal 2 points.
Yield 6,600 Capital One "miles" worth an additional $66 in travel reimbursement, or $1,166 in total value.

Is that on the total charges or just the "base". I currently use the 3% rebate on fatwallet & they only give 3% on the base (subtotal). Still better than nothing.

I may consider using the Cap One link for Priceline since I like 6% (especially if on the total amount) better than 3%. :)

So let me see if I'm getting this. You are saying $1,100 = $1,100? I may be relying a little too much on my "are you smarter than a third grader" math knowledge but I'm going to go out on a limb here and agree. Yep, I think I'll just save myself a whole lot of wasted, esoteric overcomplicationalizing and use this "mysterious" $1,100 of cash as if it were $1,100 in cash. :cool:

^

All I can say is that I like the posts where people share, with excitement, how they used these free points.

I dislike the posts where others try to divine if those people are smart or not. And I worry that it prevents others from sharing what they are doing so that we can enjoy their successes and be inspired.

As for me, the four reward nights at the Park Hyatt Paris Vendome have been cancelled and the 132,000 points redeposited in my account. The vouchers will pay for five nights and I will be using my Diamond Suite upgrades.

Here's the deal. I am very, very happy. And I'm happy for all the others that are, well, happy! If you think I'm an idiot, do me a favor and keep it to yourself!;)

Hate to break up all the happy thoughts everyone have on this thread.
Can someone supply some happy thoughts on if is it possible to book entire package deals with Capital rewards or will they only give partial credit.

I was interested in a Disney vacation package for the family that was all inclusive. Airfare, disney hotel,admission tix to theme parks and even covers some of the meals. But it was all one lump sum total per person. Don't even know if they can break it down for reward points or will they accept the whole total figure for point use. Any ideas? Thanks

I've looked over a few of these comparisons on what the miles are worth, and with these 3 cases cited I think you are really digging deep to come up with these "scenarios". Sure, if you wait 20 years to use the miles, it won't be worth much, or if you buy $1,000 in lottery tickets and lose out, it's worth "nothing". How you spend the points is your business but you get to use cash or $1,000 worth of points to buy tickets, etc. Old famous saying my friend: "don't look a gift horse in the mouth" Cheerios

I'm in a similar boat. Hyatt Tokyo beckons (their rates are low due to the tsunami-related travel decline, so the cert. will defray a lot of my stay).

Which property are you staying at -- the Hyatt Regency in Tokyo (Shinjuku)? I stayed there in Feb. -- it was very nice, & as a diamond, -- the access to the Regency club there was great!^