Using FF Miles vs. Cash?
 

I realize I'm asking an oversimplified question where I'm sure the answer is complex, but is there any rule of thumb about whether it pays to use miles or money? I am debating a US to Europe flight, 60,000 miles or approx $625. If it makes any difference, I only accumulate miles via flying, not from credit card purchases etc. Can anyone recommend a website that explains this complex mathematical/economical dilemma? : ) Thanks

The conventional wisdom is that 60,000 miles is worth at least $600 - - and probably more like $900-1200. You can also "buy" FF miles - - and they would cost you about $1500 in most systems.<BR><BR>It all boils down to which would you rather keep.<BR><BR>Best wishes,<BR><BR>Rex<BR>

Good website: www.flyertalk.com<BR><BR>Personally, I would purchase a ticket for $625 rather than buring 60,000 miles. (You will actually be using closer to 70,000 because of the miles you will NOT get if you fly free). You shouldn't trade for less than a penny a mile, so buy the ticket and collect the long-haul miles to Europe and back. You would be far better off taking a couple of domestic tickets on shorter hauls where you would have had to pay more than $300 and accumulated far fewer miles. I try to shoot for two cents a mile and will rarely trade for less than 1.5 cents/mile.

I've heard this as a general rule of thumb: multiply the cost of the ticket by 100, and if the product is greater than the number of frequent flier miles, it's worth it to use the points rather than pay. So, your $625 ticket would equal 62,500 miles, so you'd be doing well to use your frequent flier miles.<BR>Anyone hear of a different formula?

While I can't explain all of the considerations, my personal rule of thumb is to try to save my miles for the most expensive flights possible. You mention using 60,000 miles for a $625 ticket from the U.S to Europe. When I use miles to go to Europe, I try to save enough for a business class ticket that would normally sell for at least several thousand dollars. On United, where I have most of my mileage, a U.S. to Europe business class ticket requires 80,000 miles. I find that I get the most value for the mile this way. You might also consider the cost of buying an ugradeable ticket and then using your mileage to upgrade to a higher class of service. <BR><BR>You should check out flyertalk.com. You can get good advice from the frequent flyers who use that site.

Wow, thanks everyone! I'm blown away by all the great responses I've received in just a few short minutes after posting! Will reread again (I never was too good in math!) and check out that website. Grazie : )

You're quite welcome. Just to add one more consideration: all miles are not created equal. Flight miles count toward status. If there is any chance that you could make elite status with the help of your flight to Europe this year, then that should weigh very heavily in your decision. On the airline I fly, I earn double miles and get unlimited first class upgrades on domestic flights by virtue of elite status. The "free ticket" becomes a lot of lost opportunity if it ends up standing between you and the first class section on many of your travels and $625 is not all that bad of a fare. Happy Contrails!

Buy the ticket and use the miles to upgrade.

to the top<BR>

I would give you more than $625 if there was a way I could get those miles from you, legally, to have for upgrades.<BR><BR>In a heartbeat.<BR>

Okay, I'm convinced! I can fly Alitalia for approx $615 and accumulate 12,000 miles RT to be credited towards my USAirways miles. I'll never make it to the Premier class, as I don't fly all that much, but I can look forward to upgrades or a free flight when it really pays. Thanks again guys!