Buying Air Canada Aeroplan points

[burmans]

I want to go A to B. The airline(s) prices it as $X. Whether of not you think its worth it, that's the cost. If I had no points, I'd have to pay that. As an alternative, I can earn or buy points and redeem for the same flight. So I've saved $X-(cost of points). The actual 'worth' of the flight doesn't matter to me - I had to do it and I got it much cheaper by buying and using the points.

So all you have done is provided on example where you have decided it’s worth it to buy points.

But as the saying goes, one swallow doesn’t make a summer. I’m sure everyone can supply many more examples where they have decided they don’t want to pay that much. If anything you’ve proved my point, in this one circumstance you are prepared to pay that cost, it’s a bit extreme to extrapolate this to mean you’ll alway do so.

 

[RooFlyer]

I’ve yet to meet a flight where there aren’t options. Different airlines, different classes of travel, options to reposition, pay cash or points, or in some cases cash and points, change my dates slightly!

But as the saying goes, one swallow doesn’t make a summer. I’m sure everyone can supply many more examples where they have decided they don’t want to pay that much.

Of course! But then they don't take that flight.

I see how we are at cross purposes. You are talking about the absolute cost of getting to a destination, one way or another, in any class, on any type of carrier, at some time etc. I've been talking about the value of buying points for a particular flight Vs the cash cost.

I'll take a good value direct flight in business on the day I want by purchased points Vs faffing around with all the other combinations, any day.

 

[MEL_Traveller]

Of course! But then they don't take that flight.

I see how we are at cross purposes. You are talking about the absolute cost of getting to a destination, one way or another, in any class, on any type of carrier, at some time etc. I've been talking about the value of buying points for a particular flight Vs the cash cost.

I'll take a good value direct flight in business on the day I want by purchased points Vs faffing around with all the other combinations, any day.

Yes, i suspected the two conversations were at cross purposes. But you’ve summed it up!

Personally I ‘value’ a return to Europe from AU at around $4500… because that’s what I can get it for on Aeroplan. If SQ/QF/CX want $10k, I can’t see the advantage simply because there’s one less stop than using Aeroplan.

 

[Matty F]

I'm trying to understand the point being made here

You're saying your own value of a product, ie. what you value the flight to be yourself - matches exactly what the airline has priced that product at, or how much you can get it on points... no exception?

I'm sorry, but it's not making any sense to me. When purchasing anything, have you never once said "I'm not paying that, it's not worth it" or "I'd rather spend that money on something else of higher value to me" ie... how much you're willing to pay, is LESS than what the seller is asking?

Using an example - an airline is offering a flight at $10,000 cash, and you manage to get the same booking for $5,000 worth of points. You're trying to tell me that you will unequivocally say you're getting $5,000 (or is it $10,000) worth of value?

Where is your intrinsic valuing model, if you're just naively using the values set by the airline? Do you honestly believe in a room full of people every single one of them will agree that you just got $5k-$10k worth of value?

You've now spent $5,000. Were there not other things you could have spent that cash on? Could you have taken the same flight in economy, and spent the money on a nice hotel? Could you have changed dates for a cheaper flight, and put the savings to good use elsewhere?

Or are you sitting on such large amounts of wealth that money has lost all meaning to you?

One thing that is quite clear by now - you guys are an airline's dream customer

 

[MEL_Traveller]

You've now spent $5,000. Were there not other things you could have spent that cash on? Could you have taken the same flight in economy, and spent the money on a nice hotel? Could you have changed dates for a cheaper flight, and put the savings to good use elsewhere?

Every product or service has an intrinsic price… materials plus labour. Value is in the eye of the beholder… how much profit are you willing to give someone over and above the cost to produce it?

Personally I try and avoid an economy trip to europe, so the baseline is flat bed. I’m willing to fork out $4500 to europe, but get to $10k and that’s the company taking advantage of me. Especially when the fare out of asia, just a few hours away, is only $3500.

And I’d get business class *as well as* the nice hotel. If that’s what you want.

My own yardstick… value = a product that takes more time to consume or enjoy it than I spent to earn it