Valuations: Points vs Miles vs Cashback
#16
Join Date: Aug 2006
Location: ATL, BHM, DUB, County Wexford
Programs: DL DM, AA ExPlt, Diamond HH, HY, BW, & Titanium Elite Marriott
Posts: 4,864
For my needs:
AA, 2cpm, redeeming short-haul domestic for my non-elite-status kids. Just had a redemption last week, 8500 miles for a ticket that would have been about $210 in Basic Economy, $240 in regular Y. Boring award but good cash value.
AS, hard to put a value on them because I redeem them for long-haul J/F that I wouldn't otherwise buy with cash. So I call it 1.5 cpm if I'm considering alternatives. As they integrate into OW they're devaluing in the process, but there are still some sweet spots out there.
HY, 1.5 cents. Globalists can do better I'm sure. As a Discoverist I limit my redemptions to Hyatt Place, mostly, so I'm sort of bound by the mid-category opportunities.
Marriott, 1 cent. Redeeming in the Middle East and Asia is the way to go for Marriott. US and European redemptions are often painful. I sometimes use my credit card Free Nights in US and Europe for higher-end hotels.
Hilton - 0.5 cent, trending towards 0.4 cent. The Turkish Lira of hotel points.
UA, A3, BA, DL - all of these I rank a little lower than AS, simply because I don't earn enough of them to ever redeem a long-haul J/F award and don't often see really great low-end awards. BA used to have some short-haul sweet spots but they aren't as good as they once were. So maybe 1.3-1.5 cents each.
If there's ever a "tie", I err on the side of cashback. I don't carry a walletful of cards to play the category games, but for things like dining and gas I use a 3-4% cashback card. Already have too many hotel points.
AA, 2cpm, redeeming short-haul domestic for my non-elite-status kids. Just had a redemption last week, 8500 miles for a ticket that would have been about $210 in Basic Economy, $240 in regular Y. Boring award but good cash value.
AS, hard to put a value on them because I redeem them for long-haul J/F that I wouldn't otherwise buy with cash. So I call it 1.5 cpm if I'm considering alternatives. As they integrate into OW they're devaluing in the process, but there are still some sweet spots out there.
HY, 1.5 cents. Globalists can do better I'm sure. As a Discoverist I limit my redemptions to Hyatt Place, mostly, so I'm sort of bound by the mid-category opportunities.
Marriott, 1 cent. Redeeming in the Middle East and Asia is the way to go for Marriott. US and European redemptions are often painful. I sometimes use my credit card Free Nights in US and Europe for higher-end hotels.
Hilton - 0.5 cent, trending towards 0.4 cent. The Turkish Lira of hotel points.
UA, A3, BA, DL - all of these I rank a little lower than AS, simply because I don't earn enough of them to ever redeem a long-haul J/F award and don't often see really great low-end awards. BA used to have some short-haul sweet spots but they aren't as good as they once were. So maybe 1.3-1.5 cents each.
If there's ever a "tie", I err on the side of cashback. I don't carry a walletful of cards to play the category games, but for things like dining and gas I use a 3-4% cashback card. Already have too many hotel points.
#17
Join Date: Aug 2003
Location: Seattle, WA. USA
Programs: MR, AA, UA, DL, AVIS and growing
Posts: 1,172
UR or Venture
Any opinion on which rewards program is better? MY C1Vx since it's coded as utility will give x2 points.
#18
Join Date: Apr 2022
Posts: 392
Not really sure about how the US airlines compare but I reckon 1 British penny for BA avios and between half and a third of a penny for hotel points. Not that I get many hotel points because I use the BA shopping site to click through to hotels.com and pick up the avios plus the 10% credit.
#19
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 52,575
I don't know all of your cards, but with a $20k purchase I might look at ones that have a good threshold bonus on top of the regular rewards.
#20
Join Date: Aug 2003
Location: Seattle, WA. USA
Programs: MR, AA, UA, DL, AVIS and growing
Posts: 1,172
So I'll take your advice and apply for a Business card get high SUB of 90k plus 20000 points spend.
I'm going business cards with Chase as no credit iscore change.
Last edited by euromannn; Jan 17, 2023 at 5:09 pm
#21
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 52,575
Not really sure about how the US airlines compare but I reckon 1 British penny for BA avios and between half and a third of a penny for hotel points. Not that I get many hotel points because I use the BA shopping site to click through to hotels.com and pick up the avios plus the 10% credit.
Only drawback: while Y was often wide open - enough that I've redeemed 5-6 awards on the same flight before - J was incredibly scarce. Great for taking the family to Europe. Bad if you are just looking for one premium seat.
#22
Join Date: Mar 2011
Location: New York, NY
Programs: AA ExPl, DL PM, UA Silver, Hyatt Globalist, Marriott Titanium, probably some others
Posts: 4,105
My $0.02 as a US-based BA Avios user: I haven't redeemed post-covid but pre-covid they were great for transatlantic Aer Lingus flights. I could get around 2 cpm, sometimes a little better, with minimal YQ.
Only drawback: while Y was often wide open - enough that I've redeemed 5-6 awards on the same flight before - J was incredibly scarce. Great for taking the family to Europe. Bad if you are just looking for one premium seat.
Only drawback: while Y was often wide open - enough that I've redeemed 5-6 awards on the same flight before - J was incredibly scarce. Great for taking the family to Europe. Bad if you are just looking for one premium seat.
#23
Join Date: Feb 2000
Posts: 6,546
amex is worth $0.15 because i cash those out via paid J booking with 35% back biz plat benefit and the rest i cashout via schwab plat to schwab roth ira at $0.011 which is worth way way more than that because schwab allows these as over the annual roth contribution limit “bonuses.” 100,000 AMEX points today puts $1100 cash in roth ira today, which will be worth $11,000 in 30 years at 8% rate of return, every dollar tax free forever, and on top of your $6500/$7500 regular contribution.
#24
Join Date: Aug 2003
Location: Seattle, WA. USA
Programs: MR, AA, UA, DL, AVIS and growing
Posts: 1,172
hyatt is worth $0.015 and that means chase is worth the same to me as 90% on my chase points are transferred into hyatt.
amex is worth $0.15 because i cash those out via paid J booking with 35% back biz plat benefit and the rest i cashout via schwab plat to schwab roth ira at $0.011 which is worth way way more than that because schwab allows these as over the annual roth contribution limit “bonuses.” 100,000 AMEX points today puts $1100 cash in roth ira today, which will be worth $11,000 in 30 years at 8% rate of return, every dollar tax free forever, and on top of your $6500/$7500 regular contribution.
amex is worth $0.15 because i cash those out via paid J booking with 35% back biz plat benefit and the rest i cashout via schwab plat to schwab roth ira at $0.011 which is worth way way more than that because schwab allows these as over the annual roth contribution limit “bonuses.” 100,000 AMEX points today puts $1100 cash in roth ira today, which will be worth $11,000 in 30 years at 8% rate of return, every dollar tax free forever, and on top of your $6500/$7500 regular contribution.
#25
Join Date: Dec 2019
Posts: 240
hyatt is worth $0.015 and that means chase is worth the same to me as 90% on my chase points are transferred into hyatt. amex is worth $0.15 because i cash those out via paid J booking with 35% back biz plat benefit and the rest i cashout via schwab plat to schwab roth ira at $0.011 which is worth way way more than that because schwab allows these as over the annual roth contribution limit “bonuses.” 100,000 AMEX points today puts $1100 cash in roth ira today, which will be worth $11,000 in 30 years at 8% rate of return, every dollar tax free forever, and on top of your $6500/$7500 regular contribution.
#27
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,958
Critique here: https://www.uscreditcardguide.com/po...roth-ira-dont/
Since these articles were written the cash out rate has changed from $0.0125 to $0.011, but the concept is the same.