There are actually 2 tiers of the American Express Membership Rewards Program—the MR tier (this is the “full” program) and the Express Tier (which is identical to the MR tier except that you can’t transfer points to other frequent flyer/hotel programs). The Express Rewards program typically applies to AMEX cards that don’t charge annual fees, such as Blue From American Express.  Since the Express Program offers fewer redemption options than the full MR tier, it’s possible (and it turns out to be true!) that the value of the points earned in the Express program could be worth less than the same number of points earned through the MR program.

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The American Airlines AAdvantage (“Advantage”) Rewards program is the 1st and world’s largest frequent flyer program, or so their website claims. Travelers earn miles when they fly on American Airlines, American Connection/Eagle, or more than 20 other airline partners. The American Airlines Advantage program offers several different types of awards:

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In order to calculate the value of certain frequent flyer programs, it is necessary to understand what it would cost to buy those airline tickets with cold hard cash. In economic terms, I think this is referred to as the replacement cost. Given that airline pricing strategy is one of the more complex human endeavors (witness the armies of economics PhDs hired by airlines to tackle this stuff!), we aren’t aiming for anything near perfection here, just a directional estimate.

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