How much would you pay for miles?
May 13, 2011 | 9:30 am
#1
Original Poster
Join Date: Mar 2011
Location: BOS
Programs: US, AA, Delta, BA, Hilton, Marriot, HYATT
Posts: 433
How much would you pay for miles?
What do you think is fair price to pay for miles? The idea is not to buy them from airline, If i create a scheme to make miles what is the justifiable cost.
May 13, 2011 | 9:35 am
#2
Join Date: Nov 2009
Posts: 737
At the present time, I would pay 0. I can get them for the cost of a few credit inquiries and most of us can get enough to cover our travel plans.
May 13, 2011 | 9:44 am
#4
Join Date: Nov 2009
Posts: 737
May 13, 2011 | 10:06 am
#7
In Memoriam
Join Date: Apr 2001
Location: dallas texas usa
Programs: aa plt 4.9MM LTAC
Posts: 14,828
i don't need any, but....i think that there would be a high volume market @1 cent & the market would stall at 2 cents...
if i needed 1k mi for a 100k j award immediately, 10-25 cents would be considered...but this wouldn't generate enough volume...
that's my 2 cents worth....
if i needed 1k mi for a 100k j award immediately, 10-25 cents would be considered...but this wouldn't generate enough volume...
that's my 2 cents worth....
May 13, 2011 | 10:07 am
#8
Join Date: Aug 2007
Location: NC
Programs: Priority Club Plat, AA Gold
Posts: 428
Do some searches for "what is a mile worth". Everyone's idea is different. It depends on what you'd use them for. I only redeem in coach international, so very roughly I would be willing to pay $600 for 40,000 (off peak to Southern South America on AA) so that's 1.5 cents per mile. Even at 1.5 cpm I would not buy unless I was in a bind and ran out of my stash of miles, or had an immediate need for a specific trip. However, most people on FT redeem in J or F so they value miles a lot higher than I do.
May 13, 2011 | 10:20 am
#9
Original Poster
Join Date: Mar 2011
Location: BOS
Programs: US, AA, Delta, BA, Hilton, Marriot, HYATT
Posts: 433
I agree. What i am trying to find out is actually the lowest value of a mile. I will not pay 1.5 cents even if the airline offers me the miles.
For economy class i think the real value of mile is about 1 - 1.5 cent.
For economy class i think the real value of mile is about 1 - 1.5 cent.
Last edited by virtuo0; May 13, 2011 at 10:28 am
May 13, 2011 | 10:33 am
#10
Join Date: Nov 2010
Posts: 59
I value my miles at the following:
United 1.6 cents/mile
Hilton .6 cents/point
SPG 2.5cents/point
I will buy them at 40% of this value. Keep in mind that the Airlines and Hotels will routinely charge you double the listed price (i.e. one r/t airfare for 50K instead of 25k), so you should pay much less than their face value.
Good Luck,
Bald Army Guy
United 1.6 cents/mile
Hilton .6 cents/point
SPG 2.5cents/point
I will buy them at 40% of this value. Keep in mind that the Airlines and Hotels will routinely charge you double the listed price (i.e. one r/t airfare for 50K instead of 25k), so you should pay much less than their face value.
Good Luck,
Bald Army Guy
May 13, 2011 | 10:33 am
#11
In Memoriam
Join Date: Apr 2001
Location: dallas texas usa
Programs: aa plt 4.9MM LTAC
Posts: 14,828
i'm confused!...are you answering your ?....or, you are saying the scheme must cost less than 1.5c?...
May 13, 2011 | 10:47 am
#12
In memoriam
Join Date: Jan 2006
Posts: 4,020
I agree with learningtime's posts above.
I would not pay anything for miles since I am able to get more than I can use at the cost of a few credit pulls and filling out a few credit apps.
And, maybe, placing a mint coins order.
Also, you never know when miles can be rendered more or less worthless by an airline. I'm talking about you, Delta.
I would not pay anything for miles since I am able to get more than I can use at the cost of a few credit pulls and filling out a few credit apps.
And, maybe, placing a mint coins order.
Also, you never know when miles can be rendered more or less worthless by an airline. I'm talking about you, Delta.
May 13, 2011 | 10:48 am
#13
Join Date: Oct 2009
Location: Land of the parrots and parrotheads
Programs: Several dozen
Posts: 4,820
I pay as high as $.008 which is about the cost to gen a virtually unlimited amount with GC/DC. Like to pay $.002 which is about gas and baggies for DCs. Overjoyed to be actually paid to haul the miles away with rebates in a GC/DC transaction, but that gig is over until fall.
May 13, 2011 | 10:51 am
#14
Original Poster
Join Date: Mar 2011
Location: BOS
Programs: US, AA, Delta, BA, Hilton, Marriot, HYATT
Posts: 433
Coming back to the scheme i think it should not cost more than 1.1 cents leaving at least 25% - 30% margin.