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Old Oct 30th, 2006, 11:47 AM
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Mileage vs. $$

In your opinion, if mileage or money weren't an issue, at what price point would
you use mileage instead of paying for the
ticket (say 50K points)


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Old Oct 30th, 2006, 11:56 AM
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I don't typically use miles for any ticket $400 or less, but it kind of depends on where you are going. For example, is this a European fare, or a 'premium' US fare ? I also rarely use miles for fares in the US or Canada. Typically we use miles for Europe or the Caribbean (only).
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Old Oct 30th, 2006, 11:58 AM
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I go by coach prices vs 25-35K mileage I'd pay up to $500 for a ticket... mileage after that. Generally I will not use my miles for tickets in the cont. US flying from ORD or MKE.

Just my rule of thumb...
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Old Oct 30th, 2006, 12:00 PM
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I think of each mileage point as worth about $0.01. So, for 50K points, the ticket would need to be $500+.

But of course, if I pay for a $500 ticket, I can accure miles from that ticket, and some airlines have double mileage promos. So, it's acutally a bit more complicated than just putting a $ on the mile.
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Old Oct 30th, 2006, 12:10 PM
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You might try posting this on the Airlines forum. There are mega- frequent flyers there who talk about this topic all the time
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Old Oct 30th, 2006, 12:38 PM
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I never "waste" my American miles by using them for domestic tickets that I could get fairly cheap. In fact I usually use them 90,000 at a time for free Business Class tickets to Europe and go for two stopovers (one each way) that gives me several destinations. Those tickets usually price out at about $7000 so that's gettin about 8 cents per mile for my miles.
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Old Oct 30th, 2006, 12:47 PM
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I'm with Neo on this one. After using miles to fly business class to Europe, (90k miles for a $4k ticket) I'm not "wasting" them on domestic coach fares any more. We are doing all we can to save our miles for our Africa 2008 trip - business or first class all the way. It makes those long trips, dare I say, enjoyable. Our flight from MUC-LAX was continuing on to New Zealand. After 9 hours in the air, as the FA was refilling our wine glasses, DH and I turned to eachother and said, "Want to keep going?"
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Old Oct 30th, 2006, 12:55 PM
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Whether you realize it or not, you paid around 2 - 3 cents per mile for those miles, buried in credit card fees paid by merchants, etc. Therefore any use that doesn't at least break even is a money loser.

If these are airline FF miles, and not Captal One miles etc., then you should carefully look at the redemption tables on that airline's website.

Most FFers agree that upgrades are, in general, the best use of miles. Saving 90K miles for a "free" round trip to Europe in business class is a good use, but what if you can upgrade from coach for 50K miles and maybe a "co-pay?" If you do that on a Europe trip, you also get credit for the (coach) miles earned on the trip, so if you're coming from, say, the west coast, you'll earn 10-12,000 miles for the round trip, v. 50K used to upgrade, net down 38K miles (and some cash, probably) instead of down 90K miles.

Or for domestic travel, on AA for instance, a one-way upgrade for any domestic itinerary - including Hawaii and Alaska - is 15K miles. HUGE difference on a transcon or Hawaii itinerary. 50K miles = 1 1/2 roundtrips, except remember you continue to earn miles on the upgraded flights, so in actuality it's very close to 2 RTs upgraded for 50K miles in most cases.


It's definitely a case where learing the program and doing the math makes a lot of sense.
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Old Oct 30th, 2006, 01:32 PM
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Unlike some other posters, I actually have redeemed many miles for domestic economy tickets this year. How to best use one's miles very much depend on one's travel habits.

For me (and DH), we never will be able to know our schedule 330 days ahead in order to book FF Business tickets. So yes, I agree it's a great deal to use 90K miles for a Business tix to Europe, it just won't work for me.

We normally only know our schedule 4-6 weeks in advance at most, so sometimes buying domestic tickets then can be expensive. We flew from Dallas to Bangor, Maine back in June, and used 25k miles each for our tickets. We would have had to pay $500 each for the same flights.
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Old Oct 30th, 2006, 01:33 PM
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One time I did buy coach tickets to Europe and upgrade to Business. But with the extra cost now to do so ($500 extra roundtrip)added to the already high cost of the tickets, and the high number of miles to do it, plus not being able to add two more destinations as stopovers, it just didn't work out mathwise for me as well. But for some it could.
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Old Oct 30th, 2006, 01:36 PM
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I don't put a value on my FF miles. I earned them doing things I would have done anyway. Merchants don't charge a higher price for sales paid with a credit card, so if I had bought all my groceries with cash, I wouldn't have paid any less for them.

So when I have enough for a trip and can use them for someplace I want to go, then I will use them. Sometimes it is a domestic trip, sometimes international. Just depends on what is going on.

With regard to whether FF miles are worth more when used as an upgrade or to purchase coach fares, for me that is a moot point because I would not be buying business or first class tickets anyway so an upgrade to business or first is not a "savings". I do buy coach tickets though. So if I can buy coach tickets with FF miles, then that is definitely a savings. In some cases, coach tickets bought with FF miles rather than money is the difference between being able to afford a trip or not.
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Old Oct 30th, 2006, 01:39 PM
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I value most of mine in terms of what they cost me and that is $1 per mile since I have an airline-related CC and as a rule I get 1 mile for every dollar spent.

Ergo very few of those miles were "free" because I had to spend money to get them.

I agree that I usually don't use miles for domestic fares unless it is to Hawaii; otherwise I use them for FC or Business Class trips abroad.
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Old Oct 30th, 2006, 01:51 PM
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I am not a very frequent business flyer but I do accumulate miles. I tend to use them for whatever, whenever I have accumulated enough to go.

My concern is that my airline will one day decide they are worthless. Just like their stock, employee pension plans, etc.

So my philosophy is use 'em before I lose 'em.
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Old Oct 30th, 2006, 02:50 PM
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As J Correa says, if you are using the cards to purchase things that you were going to purchase anyway, then how is it costing you $1 a mile, when you have the groceries, prescriptions, etc. in your cabinet? Those merchant fees are built into the cost of our products whether we use a credit card with "rewards" points, or one without. Following that logic, then those who are using non-reward credit cards are subsidizing those of us who are earning miles with ours. To those consumers, I can only say -- THANKS!

Everytime I have tried to purchase an "upgradable" coach ticket, there were either unavailable (snapped up by savvy business travelers, no doubt) or over 3 times the price of a discounted coach ticket. The math didn't make sense for me in those cases.

I also agree with those who say that you should do whatever works for your situation. Some of us earn the miles by flying for business, some of us earn them by charging reimbursed business $$$ on credit cards. How fast you can earn them, how much in annual fees you may pay, etc. also have a bearing on how you value them.

My favorite miles-earning situation happened when we were changing our business cell phone service to Sprint, because Sprint has better coverage in our area and our Cingular contract had expired. There just happened to be a promotion earning us 10k miles per line of service transferred. I had no idea this promo was on until I walked into the Sprint store. Since we have 8 cell phone lines, we earned 80k miles without breaking a sweat.

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Old Oct 30th, 2006, 03:19 PM
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we only use points to travel from DC to Europe or other far away destination. We buy coach and upgrade to business or first class using point.s Last year we went to Paris. Paid $600 and updgraded with 20K points for business class.
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Old Oct 30th, 2006, 03:46 PM
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My concern is that my airline will one day decide they are worthless. Just like their stock, employee pension plans, etc.

I understand your concern; however the reality of FF programs is that the conduits (Visa, etc.) buy the miles in bulk from the airlines and then re-sell them to you as part of your credit card fees as well as via the skim paid by the merchant. So the airline gets its money up front. Statistically, only a fraction of the miles sold are actually redeemed, and because so many are redeemed for low-cost products like coach seats (really) the airlines make a lot of money on the "leakage" through the system.

The result is that on most airlines' balance sheets, the value of the FF program is very high compared to other components of their assets and liabilities. When Air Canada went bankrupt a few years ago, it sold its FFP to a third party for (if memory serves) more than the then-net worth of the airline. Even when airlines merge, they take special pains to ensure that their FF plans stay intact, because they are cash cows for the airlines. If they weren't, they wouldn't be around for a NY minute in this day and age.

People can earn and burn their miles however they choose. The OP asked where the tipping point is, and some people have one point and others have others. As it should be.
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Old Oct 30th, 2006, 03:56 PM
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What type of coach fare can be upgraded using FF miles on Delta? Do you know the coach class?

Thanks...
Debi
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Old Oct 31st, 2006, 01:12 PM
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Anyone able to answer my Q in last post?

Thanks,
Debi
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Old Oct 31st, 2006, 01:49 PM
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Debi,
Y/B/M for international, not sure if there are more upgradeable fare classes for domestic.
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Old Nov 1st, 2006, 12:43 AM
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I'm not sure of the class. I just call the 800 number and tell them what I want to do (buy economy and upgrade with points) and they usually can find me something. We are always very flexible with our dates.
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