Prime Reward Cash vs. Miles
Apr 24, 2004, 9:58 pm
#1
Original Poster
Join Date: Aug 2003
Location: Phoenix - HP - Silver, HHonors - Diamond
Posts: 134
Prime Reward Cash vs. Miles
I spent 5/1/03 to 4/30/04 on the Prime Rewards Cash program. Where you get cash back. You first need to pay the $49 membership fee with Cash back then you get cash. I spent $1,330 on meals during the year. Covered my $49 plus got back $199 in cash. A rebate of Approx 15%. I went back to miles though because I could have gotten 13,300 miles on America West and their shorthaul flight requirement for a free flight is 15K miles. The cash is good because it seems like it is quantifiable. You know you go on a business trip have a $100 business meal and get $20 back, this of course after meeting the annual dues. THose on the cash option. What keeps you staying.
Apr 25, 2004, 7:42 am
#2
Join Date: Sep 2001
Location: Philadelphia, PA, USA
Programs: UA 2P, AA LT Gold, Marriott LT Titanium
Posts: 3,159
Cash doesn't make sense to this FTer
To me the true value of iDine is being able to have 8 CC's linked to 8 different FF accounts. This allows me to:
1) Top off accounts (very precisely I might add, not in 1000 mile increments like Amex MR) to get to an award level.
2) "Refresh" orphan accounts every 35 months to avoid potential closure of the accounts and forfeiture of miles.
3) Participate in kewl promos like NW's FFF, where a single KL flight plus 5 iDine transactions yielded 10K miles; or UA's promo between Xmas and New Years where two partners (for me an iDine transaction and a MP Mall transaction) netted 7500 miles for each of the 4 members of my family, total of 30K for the bonus plus 5K for the 4 dinners out with the family and 4 Mall transactions = 35K or one saver award to HNL = $650 of value from the East Coast. I never could have had four car rentals or hotel stays or flights in this dead holiday period.
4) A further sweetener is the various promos where 3 dines gets you a 250 mile or 500 mile bonus - I do not keep track of these but get the odd 500 or 250 showing up from time to time.
I can not imagine earning enough cash to equal these benefits.
1) Top off accounts (very precisely I might add, not in 1000 mile increments like Amex MR) to get to an award level.
2) "Refresh" orphan accounts every 35 months to avoid potential closure of the accounts and forfeiture of miles.
3) Participate in kewl promos like NW's FFF, where a single KL flight plus 5 iDine transactions yielded 10K miles; or UA's promo between Xmas and New Years where two partners (for me an iDine transaction and a MP Mall transaction) netted 7500 miles for each of the 4 members of my family, total of 30K for the bonus plus 5K for the 4 dinners out with the family and 4 Mall transactions = 35K or one saver award to HNL = $650 of value from the East Coast. I never could have had four car rentals or hotel stays or flights in this dead holiday period.
4) A further sweetener is the various promos where 3 dines gets you a 250 mile or 500 mile bonus - I do not keep track of these but get the odd 500 or 250 showing up from time to time.
I can not imagine earning enough cash to equal these benefits.
Apr 25, 2004, 10:36 am
#3
FlyerTalk Evangelist
Join Date: Aug 2001
Location: RSW
Programs: Delta - Silver; UA - Silver; HHonors - Diamond; IHG - Spire Ambassador; Marriott Bonvoy - Titanium
Posts: 14,185
[QUOTE=gardener]To me the true value of iDine is being able to have 8 CC's linked to 8 different FF accounts.
EIGHT???
I have enough trouble keeping track of three accounts! Congrats on you for being able to deal with all those transactions! Seattle is big on one-visit-per-month
I'm thinking of carrying around a running "scorecard" for the month as to which joints I've visited on each specific card. Last time I was so consternated I was tempted to ask if there was an internet connection in the restaurant office, and could I "check on something" for a minute?
The cashback option never appealed to me as I prefer topping off my account instead.
EIGHT???
I have enough trouble keeping track of three accounts! Congrats on you for being able to deal with all those transactions! Seattle is big on one-visit-per-month
I'm thinking of carrying around a running "scorecard" for the month as to which joints I've visited on each specific card. Last time I was so consternated I was tempted to ask if there was an internet connection in the restaurant office, and could I "check on something" for a minute?
The cashback option never appealed to me as I prefer topping off my account instead.
Apr 26, 2004, 12:56 pm
#4
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: 52,579
I'm a Prime Rewards convert...
I used to drive all of my iDines through AA when I was on my way to 1MM. I reached 1MM in March, and I estimate that the iDine contribution was about 40-45k. I had a couple of big business meals, plus the 500-miles-per-month bonus, plus a couple of other promos along the way, and finally (and not insignificantly) the bar at the end of my street is a participant.
After crossing 1MM, I converted to Prime. I got a $10 discount since I was already an Active.com member. The $39/yr. is offset against the first $39 in credits.
For me, I estimated the breakeven point at about $400/yr. in annual restaurant spend. That would yield a $41 cash reward or it would yield 4000 miles. If I were mileage-poor and needing the miles for an immediate award, I would value the miles at 1.5c or $60 total. Since I'm not mileage-poor and wouldn't take the free flight with those miles for many years, I roughly value them at a penny apiece. (And that's probably being too generous!)
The reality is that I spend closer to $2000/yr. at iDine places. ~$360 to invest right now vs. 20,000 miles that I might use someday...took me about 1 second to make that decision.
Of course, I like promos and bonuses as much as the next guy. I still have CC's linked to all of my major FF accounts for either 2nd visits or promo/bonus dines. It's just my primary credit card (and 9 out of 10 of my iDines) that earns cash back.
(The process for Prime Rewards is a good one: your CC gets credited in the bill cycle after the charge. Pretty simple.)
After crossing 1MM, I converted to Prime. I got a $10 discount since I was already an Active.com member. The $39/yr. is offset against the first $39 in credits.
For me, I estimated the breakeven point at about $400/yr. in annual restaurant spend. That would yield a $41 cash reward or it would yield 4000 miles. If I were mileage-poor and needing the miles for an immediate award, I would value the miles at 1.5c or $60 total. Since I'm not mileage-poor and wouldn't take the free flight with those miles for many years, I roughly value them at a penny apiece. (And that's probably being too generous!)
The reality is that I spend closer to $2000/yr. at iDine places. ~$360 to invest right now vs. 20,000 miles that I might use someday...took me about 1 second to make that decision.
Of course, I like promos and bonuses as much as the next guy. I still have CC's linked to all of my major FF accounts for either 2nd visits or promo/bonus dines. It's just my primary credit card (and 9 out of 10 of my iDines) that earns cash back.
(The process for Prime Rewards is a good one: your CC gets credited in the bill cycle after the charge. Pretty simple.)
Apr 26, 2004, 1:30 pm
#6
FlyerTalk Evangelist
Join Date: Aug 2001
Location: RSW
Programs: Delta - Silver; UA - Silver; HHonors - Diamond; IHG - Spire Ambassador; Marriott Bonvoy - Titanium
Posts: 14,185
I don't have a PDA for that to carry around when dining!
However, I'm going to start carrying around a blank card in my wallet each month - and recording which joints got charged to which cards as I sign the charge slip so I do not forget!
I'm still in awe of juggling eight plans - even with spreadsheets!
However, I'm going to start carrying around a blank card in my wallet each month - and recording which joints got charged to which cards as I sign the charge slip so I do not forget!
I'm still in awe of juggling eight plans - even with spreadsheets!