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Author
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Topic: Formula for when NOT to use frequent flier miles
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Cathyb
TUG MemberPosts: 1482
From: Carlsbad, CA, USA Carlsbad Inn, Trendwest , Marriott DSV & Newp, Westin MissionHills, Whaler/Maui & PonoKai/Kauai
Registered: Dec 2000
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posted 05-31-2005 06:25
    
One of our 45 yr old kids decided to get married in 7/06 in Georgia (they live in Colo and we live in Calif -- figure that one out  In checking prices from LAX, it looks like we could fly for around $350pp into Jacksonville, Fla (1 hr. to wedding site). What is the rule of thumb in deciding it is cheaper to pay dollars than use our frequent flier miles???Thanks in advance! [This message has been edited by Cathyb (edited 05-31-2005).] IP: Logged |
JeffW
TUG MemberPosts: 1615
From: Philadelphia
Registered: Dec 2000
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posted 05-31-2005 08:16
First, you need to know the total costs. For the paid tickets, that's the ticket price, plus any FF miles you'd earn for the flight. For the award tickets, it's the number of FF miles (sounds like 25k for a US48 award), plus security fees you'll pay on the award tickets ($10-$20 p/p), plus optionally any phone/in person booking fees (ie. if you're getting tickets for someone other than who's on the FF account). Assuming:
- $350 paid ticket
- 5k miles r/t on paid ticket
- $10 security fee
- 25k miles for coach award The difference is ($350 - $10) and (5k - (-25k)), or $340 and 30k. What that means is you can save $340, but it will effectively cost you 30k miles. There used to be a general consensus that 2c/m was a good redemption rate, but with airfares going down that's not always the case anymore. A lot of it depends on what you'd use your miles for. If you like to go to Hawaii, then using 30k miles to save $340 when for 35k miles you can get a ticket to Hawaii (which would likely cost twice $600-$700 or more) isn't a good deal. On the other hand, if you only fly domestic trips, then getting at least 1c/m now a days isn't a bad rate. The other thing to consider is you cashflow. Figuring you are already putting out money for lodging, maybe car rental, restaurants, a gift for your child, maybe not having to put out $700 for airfare is more important. Jeff IP: Logged | |
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