Article: When Does it Make Sense to Redeem Points for Economy Flights?

[aikman]

2) As a crude cost of points, I'm using a reasonably typical credit card churn cost (rounded up for ease): 90,000 points for $300. This would mean that 8,000 points = $27.

4) With the long-haul flights (revenue), the points accrued matter, too. I ask [how many domestic short hops in Y would I get with these points?] and then mentally discount that from the ticket cost. E.g. SYD-LHR return in flex Y as an SG nets 43,400 points = 5.4 flights (but with 5.4 * $40 = $216 in fees). If an average saving (after fees) per domestic short hop reward is, say, $100 each, then the points accrued from SYD-LHR would be worth $540.

Shouldn't you value the 43,400 points under (4) at $1,432, based on your valuation at (2) of 3.3c per point?

 

[tdimdad]

Shouldn't you value the 43,400 points under (4) at $1,432, based on your valuation at (2) of 3.3c per point?

I certainly could. But I view those 43.400 as "gifted" points, a side product from the flights purchased at a full price.
While asking "how can I use these 43,400 points?", one measure could also be the value of a potential upgrade received. E.g. flex Y to J for both legs on SYD-LHR goes for 71,900 points and you can attach a $ value from the fare difference to those points.

So many different ways to value them...

 

[luckypierre]

Why pay say, $300 for an hour's flight when you can get away with c$75?

Given the difficulties in award redemption ex Oz, just booked award flights for next year in Europe flying BA , BCN-LHR-NCL for 14000 points and $51 AUD each, Paid fare would have been 572 Euros each.

 

[levelnine]

The real sweet spot is leveraging overseas points programs + PC/PCP + DSC.

BA Avios with a commonly-offered 30% transfer bonus from US Amex or Chase or Citi or Cap1 = 4600 Avios + $AUD51 charges for SYD-MEL.

Acquire those 4600 Avios for about $AUD0.005/pt through churning and you have yourself a $75 ticket SYD-MEL + 7 SC (14 if DSC).

Though I actually prefer to go business as it is only just over double Avios (9600) for more than double SC at 18 (36 if DSC).

 

[Seat0B]

The real sweet spot is leveraging overseas points programs + PC/PCP + DSC.

BA Avios with a commonly-offered 30% transfer bonus from US Amex or Chase or Citi or Cap1 = 4600 Avios + $AUD51 charges for SYD-MEL.

Acquire those 4600 Avios for about $AUD0.005/pt through churning and you have yourself a $75 ticket SYD-MEL + 7 SC (14 if DSC).

Though I actually prefer to go business as it is only just over double Avios (9600) for more than double SC at 18 (36 if DSC).

Yes Points Club is a real game changer in the way I use my points for flights. I may have to make the effort to keep PC alive each year just for that benefit alone!

 

[Rich]

To me, it almost always makes sense to redeem points for Y, because I would rather not part with a full fare. This is provided I will still have points available for any upcoming plans.
My only qualifier is I would want to save at least $10 per 1000 VA or QF points. I don't see the need to get J value out of the points, because I wouldn't pay for J anyway. I woukd still go for J long haul, but domestically I don't bother and I almost always fly domestically on points.

 

[aikman]

I was considering a trip from Melbourne to Longreach for 18,000 points plus $111. Seems like good value compared to a cash fare.

But when I compare it to something like Melbourne to Jakarta for 20,300 points plus $126 then the Longreach trip looks quite expensive.

 

[Rich]

I was considering a trip from Melbourne to Longreach for 18,000 points plus $111. Seems like good value compared to a cash fare.

But when I compare it to something like Melbourne to Jakarta for 20,300 points plus $126 then the Longreach trip looks quite expensive.

Maybe. The question is, what is the full fare you are otherwise looking at?

 

[CaptJCool]

Yes Points Club is a real game changer in the way I use my points for flights. I may have to make the effort to keep PC alive each year just for that benefit alone!

until one hits LTG in which case SCs chasing becomes problematic seeing the LTP is so far away

so PC until then to earn the Classic Rewards status credits to get over the line

 

[SYD]

until one hits LTG in which case SCs chasing becomes problematic seeing the LTP is so far away

so PC until then to earn the Classic Rewards status credits to get over the line

Some of us are LTG and kind of like to maintains WP… The extra SCs all help.

 

[oznflfan]

When your flights are from Alice Springs to anywhere in Australia.

 

[JohnK]

Similar to JohnK, when the cash fare hits a certain threshold, I'm more tempted to book it as a reward if maintaining the status is already in train. For SYD-BNE, my limit is $159 to look at it more of a saving instead of adding to the lifetime SC's (about 1.5 years away from LTS to start with).

I'll be down to Lifetime Gold soon so would really make sense to use remaining points on domestic awards. No need to purchase cash airfares unless it's in the low $100's one-way.

One thing I forget to mention is that everyone values airfares differently. I never look at business/first awards and say look I can get x.xx cents per point as I think those business/first airfares are ridiculously priced and I would never pay that price.

As I don't earn that many points to me value is the ability to stretch the points for as many flights as possible. I'd rate 12 x SYD-BNE one-way awards @ 96,000 points as much better value than 1 single business/first award @96,000 points to wherever.

 

[CaptJCool]

So of us are LTG and kind of like maintains WP… The extra SCs all help.

yes

good point

if I'm using tax-free super dooper to, perish the thought, "pay for F" then perhaps I'll not need to - "spreading the wings"

fly More to Pay Less

 

[SYD]

yes

good point

if I'm using tax-free super dooper to, perish the thought, "pay for F" then perhaps I'll not need to - "spreading the wings"

fly More to Pay Less

OT, but I can’t bring myself to pay for F - yet. Maybe if there was an incredible deal to somewhere I’d consider it. Precovid, QF had SYD-LHR for $9,999 return! It’s that or more each way at the mo!

 

[mrsterryn]

OT, but I can’t bring myself to pay for F - yet. Maybe if there was an incredible deal to somewhere I’d consider it. Precovid, QF had SYD-LHR for $9,999 return! It’s that or more each way at the mo!

The Syd to LHR first for Dec this year return , which U had to cancel , was $12104. I thought that was a decent price for this year

 

[CaptJCool]

The challenge with F is the Reward demand outweighs supply

And when you add more and more partner airlines who expect access to Reward seats you reduce the capacity in your own FF Program

As a hypothetical
QF has 10 million members vying for 1 or 2 seats
USA (multiple) and/or UK and/or Middle Eastern and/or Asian BASED FF program has x million of which 10s or 1,000s are Australian WHO Receive the same 1 or 2 seat opportunity
Then you add European BASED FF program which has 10s or 1,000s who are Australian WHO Receive the same 1 or 2 seat opportunity

Then you add another FF Program rinse and repeat - keeps “diluting” the volume of Reward seats available for the host program

It’s also part of the reason EK became a better option because it’s a world-wide network so a stack more seats in the mix

 

[The Flying Schwartz]

Living in Albury/Wodonga, the 8000 points plus $40 each way to Melbourne is cheaper than driving, and at least you'll get a seat compared to the train. While service in the Dash 8 is basic, the crews have always been excellent. Wouldn't pay the $250+ cash fare each way ever.

Same here. We’re in Port Macquarie. The one hour in the Dash 8 to Sydney or Brisbane beats driving. Since the injection of reward seats a little while ago, there’s also plenty of availability even when there might be three of us. There’s no lounge here in PQQ and we have access to the J lounge if/when the return flight is delayed. Also have PC+ so the handful of SC is not bad either.

 

[Seat0B]

until one hits LTG in which case SCs chasing becomes problematic seeing the LTP is so far away

so PC until then to earn the Classic Rewards status credits to get over the line

Although I’m already LTG and the extra SC from Points Club is very handy for helping with maintaining annual WP. I’ve no chance ever to LTP, but annual WP is still attractive to me.

 

[CaptJCool]

Although I’m already LTG and the extra SC from Points Club is very handy for helping with maintaining annual WP. I’ve no chance ever to LTP, but annual WP is still attractive to me.

domestically, using points to fly including J (and the required points is pretty good value) still gives J lounge access

the big difference is the international lounges and WP is definitely a great benefit to have to get into them. some amazing food, champagne and desserts!

where once it was a combination of work (fares which I didn't pay) and leisure / conferences which could be negatively geared, I'm now in the leisure phase so to get to WP tends to be doddle once DSC come into play, and knowing the routes that work best for you based on home to destination - and knowing the various sequences to purchase at the lowest pricing

Each city has its big credit spinners for leaast cash.... - and the other big tic is more cash to prudently splash

 

[_TheTraveller_]

My recent examples are SYD-BKK for 17,500 points one-way. Excellent value. Unfortunately since covid availability is limited.

SYD-BNE for 8,000 points one-way when cash airfare is >$179 but I have seen award availability with $279 and $339 airfares too.

is SYD-BKK for 17,500 on QF? It seems like the standard is about 25k?