Srilm wrote:
Quote:
My rule of thumb is that 1000 miles are worth $10. So if a ticket to somewhere is $300, then I would not use more than 30,000 miles for it
So you value your miles at a penny, miles were generally valued not too long ago at 2 cents a mile. Personally they are worth about 1.5 cents to me. In any case it depends on how you or somebody else uses them.
No matter how you value your miles don’t forget to factor in your opportunity costs. This is even more important if you’ve achieved elite status within your program (or plan to). For example if a gold (or platinum elite) Continental OnePass member gets an award ticket from the Great Lakes area to San Jose they will be required to redeem 35,000 miles. But they will also be out the over 5,000 elite qualifying miles they would have earned if they had purchased the tickets. Now add their 100% elite bonus (another 5,000), and any other promotional or credit card bonuses. You’ll also pass on space available free upgrades to first class (and companion upgrades for Plats).
So even if
Srilm does not value first class upgrades, has zero elite status and does not seek it, he should still factor in the foregone 5,000 miles (or whatever the actual miles are from his home airport). So his calculation would be 35,000 (cost of award) plus 5,000 (forgone miles) multiplied by a penny a mile, for a total of $400.
An elite flyer that values their miles at 1.5 cents would calculate 35,000 (cost of award) plus 5,000 (forgone miles) + 5,000 (bonus) multiplied by 1.5 for a total of $675. At this point it would also be fair to factor in how they personally value an upgrade to first class and add that to the cost. Finally they should review their overall frequent flyer strategy, they may need the miles to be elite qualifying to make their status goal for the year.