Calculation of average CPM
 

Inspired by the thread re NYC-West Coast fares ...

What seems to be the most accepted average CPM calculation, a simple sum of the CPM-per-trip divided by number of trips or a weighted CPM-per-trip multiplied by trip miles divided by total miles travelled?

I've always thought in terms of the former (due how I've set up a miles/cost tracking spreadsheet), but the more I think about it, the more invalid it seems to say that the average CPM arrived to via the former method is, well, valid.

Take, for example, 20 LAX-SFO-LAX roundtrips, and say each one cost $500. Then have 8 10,000 mile roundtrips for $500 each. The first method would give us 37 CPM while the second would give us 14 CPM (which, if you will note, gives us a mathematically valid answer... average CPM times miles flown = total expenditures).

Thoughts?

On that NYC-West Coast fares thread , I looked up what I have spent in total and I calculated my total miles flown and just divided the two. Seems like this counts as your "weighted CPM" model.

Seems like this is more important b/c overall a weighted average is how UA reports their costs.

My question is whether or not one should include taxes and fees paid on a ticket in this calculation. I'd think that UA would be more interested in the base fare a customer paid in calculating their CPM.

A weighted CPM ... interesting idea.

I think it should clearly be total dollars spent divided by total miles flown.

I have another question, though: if I fly on a 016 ticket, and in fact all UA flight numbers, SFO-FRA on UA metal, FRA-DXB-FRA on LH metal, FRA-SFO on UA metal, how many dollars and miles do I count towards total and average UA spend calculations?

Technically, no on the taxes. Fees that UA adds for their bottom line (like the fuel surcharge): yes. Airport fees that UA never sees: No.

But it's all a little complicated and for most of my flights, at least, taxes and fees are a VERY small part of my ticket price.