Mile Value on Airline Cards

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ebg1223
 
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Mile Value on Airline Cards

Postby ebg1223 » Wed Mar 19, 2014 5:05 pm

So I have been running the numbers multiple times trying to figure this out. I fly about 6-10 times per year round trip, almost exclusively on southwest and jet blue. I have cards for almost all the bonus categories I spend on, but I am trying to figure out the best card for general spending. Whenever I calculate the value of Southwest RR points or jet blue points they seem to be no more than $0.018 each. If this is the case, why not get a Venture or Arrival with $0.02 on any airline. Am I missing something? I was thinking of apping for a CSP to transfer to southwest, but if I can do better with the Arrival, that seems like the better way to go.


linuxmachine
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Postby linuxmachine » Wed Mar 19, 2014 7:55 pm

Usually people get the co-branded cards for specific perks (like priority boarding, companion ticket discounts or free checked bags) as well as the signup bonus. They generally are not the best cards to accrue points outside of spending on the airline itself.

But between the Arrival and CSP, the arrival is better if your general spend is 1x chase points. CSP/Freedom combination is better if you actually hit the categories and get an average of 1.25 points per dollar spent (assuming you are still getting 1.8 cents per airline mile). Freedom's 5x categories are probably the best value in terms of points, so shifting some of your category spend on other cards to the Freedom could be totally worth it. For instance, Southwest RR points are worth 1.43 cents per point. If you hit a 5x category, then you are getting 7 cents on the dollar, which is a 7% return. Not too shabby.

takeshi
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Postby takeshi » Thu Mar 20, 2014 8:24 am

ebg1223 wrote:Whenever I calculate the value of Southwest RR points or jet blue points they seem to be no more than $0.018 each

Sounds low. How are you calculating these? Are you assuming redemption through UR or via transfer to the airline's frequent flyer program?

linuxmachine
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Postby linuxmachine » Thu Mar 20, 2014 10:36 am

takeshi wrote:Sounds low. How are you calculating these? Are you assuming redemption through UR or via transfer to the airline's frequent flyer program?


Southwest and JetBlue are value based. 70 RR points per dollar redemption for southwest. Jet blue isn't as exact but the number of points required for flight ticket is based on the price of the ticket. So each mile is pretty much capped. Only question is if he can hit bonus categories to maximize points on spend



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