Would someone please tell me what the monetary value of an airline frequent flyer mile is?
Thanks.

It depends on what you trade the miles for. For the purposes of calculating the monetary value in the programs I participate in, I use 1.5 cents per mile. By defining a value, you can make good decisions such as deciding whether you should be buying a ticket or taking a free one. Another example: If you can fly "No Name Airline" to Europe for $100 less than your preferred carrier on which you are accumulating miles and status, is that really a better deal for you?

In truth, all miles are not created equal. An actual flight mile that takes you over into elite status, for example, is worth far more than just a generic bonus mile that goes into your account.

I've seen a figure of two cents per mile used, but I believe it is often outdated because miles have been devalued in many programs over the past couple of years. This is because more miles are required for awards or there are additional restrictions on tickets or upgrades compared to a few years ago. At two cents per mile, a 25,000 mile minimum level award ticket would have to bring you $500 in avoided costs to be worth two cents per mile (and don't forget to add in the value of the miles you won't get when you're flying on that award ticket.) Still, people can and do get a greater value than that in trade at times.

Want to make it all even more complex? Then remember that for strictly leisure travel, you will generally be talking about buying your tickets out of net, after-tax, marginal income. That means if you need to earn $140 gross to have $100 to throw at an airline ticket.... ;-)

If you use your mileage for business class, it is worth about 4 cents a mile. \/

It can actually be worth more than 10 cents per mile in some instances if you use it for international first class. But then again, how many of us really have the option of spending over $10,000 on a ticket if we don't have the miles?

I use between 1.8 to 2 cents per mile as a gauge of what is a 'good value'. Any less than that, I'll usually opt to purchase the ticket.

Incidentally, the lowest redeemption level on several FF programs - the 5,000 mile Hawaii interisland award - is actually one of the better values, worth at least 2.6 cents per mile.

I figure they are worth about 1.25 cents a mile if used for off peak flights to Europe. 40,000 miles -vs- $450-550 for roundtrip air from KC where I live.

Keith

I don't think in terms of cents per mile, but only use frequent flyer miles domestically if buying the ticket would cost over $300.

Thank you for your help.
I am using 25,000 miles on AA for a ticket between Florida and British Columbia because I need to have the least expensive ability to change my return dates. No one mentioned the savings for being able to change dates with little penalty. Was I wise? Also, would I be able to upgrade at the gate even tho I am using an award ticket?
A.M.

You can't upgrade an award ticket on AA.
Sorry.
Have a great trip!
BTW, that is a great way to use the 25K mile award

The miles can be worth more for first class tickets.

I used miles to get award tickets to Italy..first class.

Cost 100, 000 miles or $7,000

I figure I got 7 cents per mile

Dick - Which airline goes to italy with first class?

We went from the states to Muich to Florence...and then Venice to Frankfurt too the states.

The "over the pond" flights were first and the Germany/Italy flights were business.

I think that some airlines do fly first to Rome and Milan

Isn't it odd that the world's airlines still cling to frequent flyer "miles" when everything else is in kilometers? We live in Europe now. Amusing that everying is metric...except FF miles, even on Euro carriers.

Maybe it continues to be "miles" as the program was started by American Airlines as a Frequent Flyer Miles program.

And it's not like the airplanes are taking the roads accummulating kilometers, they're flying "up there"

As everyone is aware, America just never took to the metric system, with the exception of liquids - liquor and bottled drinks (colas etc.) so it's miles. Under your premise if it were km vs miles, then we would be accummulating even more than we'd ever be able to use.

And then what about British Pounds vs USD, would that mean we'd get more km or miles because British Pound is worth more than the USD; then what about currencies that are worth less than USD$.

If the Foreign carriers chose to do their programs in km that would wreck havoc on the programs worldwide, so apparently, "miles" works for them and they stick with miles.

As they say "if it ain't broke, leave it alone!"

Sandi,
I agree with you most times, but I will have to disagree with you on this one. The following examples are with airlines that I actually had personal experiance with.
FinnAir - kilometers if you are member of their program, miles in case like mine where I wanted them posted to my AA account.
Iberia - points, set number of points to anywhere they fly, again if you are a member, but if you want the credit posted to your AA acount, miles
LanChile - kilometers, same as above.
The point is this. Regardless if you collect miles or kilometers, the rewards have to be claimed through your airline, and as such the award levels, are adjusted accordingly. If you collect kms you have to spend kms.

I'm sure others will point out other airlines using kilometers and/or points.

A few Asian carriers also use kilometers to calculate both earning and redemption. For example one roundtrip North America to Asia economy reward on MU will cost you 90,000 kilometers. Compare that with AA North America to Asia rewards which costs between 50,000 to 70,000 miles. So while it may seem like you're earning a lot more with kilometers, you need more in order to spend.

And what does pounds vs. USD vs. any other currency have to do with FF miles or kilometers?