Most passengers underestimate the value of miles, thinking it is not very impactful to their flight journey in terms of cost-efficiency. This primarily happens because they lack understanding of these points' functioning and how much each of them is worth in actual currency. If you also do not know how to determine the actual value of the airline's miles, you must go through the passage below. It discusses how you can make the most out of any airline's frequent flyer program, understand the points and miles valuation, and even leverage business credit cards to maximize your rewards and travel benefits.
The question that would be stuck in your mind regarding the airline's miles is, "How much are the miles worth?" The answer to this question is not straightforward because multiple factors influence its valuation, such as the booked cabin type, whether you are traveling internationally or domestically, and many more. Here is a list of the most prominent airlines' miles or points valuation based on their frequent flyer program:
In addition to the airlines, many consumers will be surprised to know that hotels also provide miles and points to their frequent and loyal customers through their rewards program. This implies that besides the airlines, you must also learn and understand how their miles work and what their value is in terms of cash price. Below are the mentions of some of the renowned hotels' points valuation based on their reward program:
Last but not least, one of the most efficient ways to earn miles, whether you want hotel accommodation or fly with an airline, is to use credit cards for payment. It is one of the most extensively used payment mediums; this is why knowing the miles valuation in terms of credit card price is crucial. Please note that the miles valuation varies from customer to customer based on their credit score, card type, and other factors. Refer to the pointers below to learn about the famous credit card organizations' points valuation:
If summarizing the valuation of travel points and miles in a few words, it has to be the "cents per point" value. This means Miles value is determined by calculating how much a specific redemption, such as a flight travel or a hotel accommodation, would cost in points or miles compared to its cash price. Though the points value varies from airline to airline depending on their frequent flyer program, you can calculate the redemption value by simply dividing the cash price of your booking by the number of points required for booking it.
Another commonly asked question of customers regarding the miles valuation is whether they fluctuate with time. The answer is yes. A multitude of factors influence the travel miles value, such as the price control strategy of the concerned airline or hotel, the customer acquisition potential of the competitors in the given industry, and many more.