Comments on: What is the value of American Airlines Advantage Miles? http://www.plasticiq.com/blog/value-of-american-airlines-advantage-miles/ Find the best credit card for you! Sun, 05 Feb 2012 18:28:00 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: admin http://www.plasticiq.com/blog/value-of-american-airlines-advantage-miles/comment-page-1/#comment-11171 admin Mon, 16 May 2011 03:47:57 +0000 http://www.plasticiq.com/blog/?p=82#comment-11171 Well, the post above was intended to answer that very question;) But...I'm happy to do the math for you...Since we estimate the value per mile at $0.0136, and you have 53,769 miles, that would give you a value of roughly $731. However, and this is a big however, a lot depends on how you use your miles. If you fly economy, then the estimate above may be directionally quite reasonable. However, if you use your miles typically towards business class or upgrades, you may get potentially much more value per mile, though you'll end up using many more miles to get to the same destination. We will be updating all of our miles valuation posts over the coming weeks and months to include valuations around premium economy, business, first class, and upgrades, so stay tuned. Well, the post above was intended to answer that very question;) But…I’m happy to do the math for you…Since we estimate the value per mile at $0.0136, and you have 53,769 miles, that would give you a value of roughly $731. However, and this is a big however, a lot depends on how you use your miles. If you fly economy, then the estimate above may be directionally quite reasonable. However, if you use your miles typically towards business class or upgrades, you may get potentially much more value per mile, though you’ll end up using many more miles to get to the same destination. We will be updating all of our miles valuation posts over the coming weeks and months to include valuations around premium economy, business, first class, and upgrades, so stay tuned.

]]> By: Jeanell Wilkins http://www.plasticiq.com/blog/value-of-american-airlines-advantage-miles/comment-page-1/#comment-11104 Jeanell Wilkins Sun, 15 May 2011 23:50:11 +0000 http://www.plasticiq.com/blog/?p=82#comment-11104 How much are my American Airlines miles worth. I have 53769 How much are my American Airlines miles worth. I have 53769

]]> By: admin http://www.plasticiq.com/blog/value-of-american-airlines-advantage-miles/comment-page-1/#comment-46 admin Tue, 23 Jun 2009 23:27:42 +0000 http://www.plasticiq.com/blog/?p=82#comment-46 Raj, thank you for your thoughtful comment. Regarding the London tax issue, yes you are correct, taxes to Heathrow are significantly higher than most other countries. My own analysis indicates that, on average, the taxes+fees are around $150 (based on an analysis of travel between 5 different (major) US cities and LHR). In our calculation of the ticket price (visible in the table in the above post), we have already netted out the tax from the price of the ticket, thus resulting in a lower value per mile due to the out-of-pocket requirement to pay these taxes. That said, tickets to LHR from the US tend to be marginally more expensive than tickets to the other European destinations I priced out (namely, Madrid, Paris, and Frankfurt)--after backing out the various taxes to each destination--so even if you were to do all of your travel just to London, the estimates in this post for Europe would be directionally quite useful. Raj, thank you for your thoughtful comment. Regarding the London tax issue, yes you are correct, taxes to Heathrow are significantly higher than most other countries. My own analysis indicates that, on average, the taxes+fees are around $150 (based on an analysis of travel between 5 different (major) US cities and LHR). In our calculation of the ticket price (visible in the table in the above post), we have already netted out the tax from the price of the ticket, thus resulting in a lower value per mile due to the out-of-pocket requirement to pay these taxes. That said, tickets to LHR from the US tend to be marginally more expensive than tickets to the other European destinations I priced out (namely, Madrid, Paris, and Frankfurt)–after backing out the various taxes to each destination–so even if you were to do all of your travel just to London, the estimates in this post for Europe would be directionally quite useful.

]]> By: Raj http://www.plasticiq.com/blog/value-of-american-airlines-advantage-miles/comment-page-1/#comment-45 Raj Fri, 19 Jun 2009 23:57:12 +0000 http://www.plasticiq.com/blog/?p=82#comment-45 You've done good research - Ive always wanted empirical data but it would be nice if you could build in a couple of more parameters in the model. I think you might have to exclude London from Europe. When I compare a UK award tickets tax with a same day published fare, the tax on the award ticket is always much higher. Perhaps the tax for an award is based on a higher fare than the current lowest fare. I hate to buy a 200USD award ticket when the going fare might be 500-600 on the cheapest airline. So I often buy to London and if it happens to be AA then use the points to award myself in the US where the award tickets have very little tax or surcharge (I am EP). Now, we also have a baby and its basically the same issue. On a published fare to London the ticket for an infant under two might be 80USD but for an award ticket its sometimes 150USD! At this point the award ticket starts to look more like a discount versus a freebie. Another reason to buy international for the lower infant fare and use awards domestic (where there are no infant tickets). Travelling with infants is a small group, but I would be interested in comments about the tax issue to the UK as that is where probably a good chuck of transatlantic traffic. THanks! You’ve done good research – Ive always wanted empirical data but it would be nice if you could build in a couple of more parameters in the model. I think you might have to exclude London from Europe. When I compare a UK award tickets tax with a same day published fare, the tax on the award ticket is always much higher. Perhaps the tax for an award is based on a higher fare than the current lowest fare. I hate to buy a 200USD award ticket when the going fare might be 500-600 on the cheapest airline. So I often buy to London and if it happens to be AA then use the points to award myself in the US where the award tickets have very little tax or surcharge (I am EP).

Now, we also have a baby and its basically the same issue. On a published fare to London the ticket for an infant under two might be 80USD but for an award ticket its sometimes 150USD! At this point the award ticket starts to look more like a discount versus a freebie. Another reason to buy international for the lower infant fare and use awards domestic (where there are no infant tickets).

Travelling with infants is a small group, but I would be interested in comments about the tax issue to the UK as that is where probably a good chuck of transatlantic traffic.

THanks!

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