20% discount on cash retrieval is terrible value

[jbc]

Just received a mail offer of 20% reduction in points to cash redemption. 100,400 points gets $1000. They must be joking. I have just redeemed 93500 MR points for a SIN-FCO business class saver award which is $5647. Charges for the saver award are $567 but is still is a no brainer.

 

[oz_mark]

Just received a mail offer of 20% reduction in points to cash redemption. 100,400 points gets $1000. They must be joking. I have just redeemed 93500 MR points for a SIN-FCO business class saver award which is $5647. Charges for the saver award are $567 but is still is a no brainer.

Why? They probably pay the airline $1000 or so for the 93500 points you redeemed, so from the Amex perspective it is likely roughly the same cost to them.

 

[lovestotravel]

I know several people who earn millions of points in a year and they always claim for vouchers for groceries and the like.

It's about a 1% return on points, where as Business class redemption is about 8%