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Answers (3)

Hey Lucky, what is your methodology for calculating the value of loyalty points/miles?

Hey Lucky, what is your methodology for calculating the value of loyalty points/miles?

  1. Weymar Osborne

    Often times in your posts you will say things like “I value AAdvantage miles at 1.8 cents each.” or “I value Starpoints at 2.2 cents each.” Unlike some points programs like AmEx Travel Pay With Points or CapitalOne points (which can both be redeemed to pay for airlines tickets at 1 cent each), airline miles and flexible points credit card miles don’t have a specific cash value attached to them that they can be redeemed for. For example, a round-trip AA flight from DFW to NRT that I just looked up costs $1900 while a flight from DFW to ICN costs $1800. Both could be bought as an off-peak MileSAAver award for 50,000 miles round trip. Of course, the value of the miles differs with each of the itineraries. To Tokyo, each mile would be worth 3.8 cents but to Seoul each mile would be worth 3.6 cents. Both of which are considerably over your 1.8 cent appraisal. Are your calculations an average of many different flight awards, or is it how many miles you can buy per dollar?

  2. David W

    Travis has written a few posts regarding this, one of which is here: [URL]http://onemileatatime.boardingarea.com/2015/07/31/establishing-value-miles/[/URL]

    It’s well worth the read

  3. Gaurav

    [USER=1177]@Weymar Osborne[/USER] Here are some resources to get you started:

    [URL]http://onemileatatime.boardingarea.com/value-miles-points/[/URL]

    [URL]http://onemileatatime.boardingarea.com/2015/07/29/value-redeemed-miles/[/URL]

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