How much do you value your MR points? | Australian Frequent Flyer
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How much do you value your MR points?

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Cynicor

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Depends. For "purchasing" points (i.e incurring a cost to get MR points) I use <2c/point as my cutoff. For redeeming points, I aim for >3c/point.
 

LittleFokker

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I'm in the process of migrating from being a rusted-on QFFer to a general FF tart now as an outcome of the recent simplifications.

Big part of that process was naturally moving from Amex QF earning to Amex MR and recalibrating my mental view of points value. Man, what a difference! 256K QFF vs 102K MR for MH J Syd-Lon ret. I used to value QFF at 2.0c but like-for-like (sort of) easily makes MR 3.0+ (maybe 4.0) on redemption.
 

JohnK

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I value them at ~1c/MR point and sometimes as high as ~1.5c/MR point.
 

Beta4Me

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I could value them as high as 7.5c when using SQ. I would probably value at 4c (based on 2.5c value of an AA point). I wouldn't pay more than 2c in surcharges etc. for a point, however I usually try and keep it below 1cpp/1% surcharge for acquisition.
 

lovestotravel

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I could value them as high as 7.5c when using SQ. I would probably value at 4c (based on 2.5c value of an AA point). I wouldn't pay more than 2c in surcharges etc. for a point, however I usually try and keep it below 1cpp/1% surcharge for acquisition.
Yep these are exactly my thoughts, and yes Suites is a good redemption!
 

exp1k

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You can redeem a $9000 SQ Suite flight (oneway to Europe) for 112.6k points plus $500 fees, so you get a perceived value of 7.5c/p.
But would you actually pay $9000 for that flight? How much would you pay for it, i.e., how much do you actually save by using the points?

Say you would only pay for an economy class ticket and regard the points as a free upgrade to first class. Then you would pay about $1000 for that flight, plus you would probably earn at least 10k points for it. So you pay 123k points to save $500 (1000-500 fees), which is an actual value of 0.4 cents/point plus a free upgrade to first class. Depending on how much you would actually pay for the upgrade, that's the additional value of the points above 0.4 cents.
 

Beta4Me

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You can redeem a $9000 SQ Suite flight (oneway to Europe) for 112.6k points plus $500 fees, so you get a perceived value of 7.5c/p.
But would you actually pay $9000 for that flight? How much would you pay for it, i.e., how much do you actually save by using the points?
I found a 14.1cpp redemption and I figured I would have been willing to pay half the $ cost of the rev fare. So, I probably should say SQ points in value at 7c.
 
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equus

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I value them at ~1c/MR point and sometimes as high as ~1.5c/MR point.
They have to be valued at a minimum of 1c per point, as they can be used directly as "cash" for fares via Amex travel at that rate.
 

burmans

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I could value them as high as 7.5c when using SQ. I would probably value at 4c (based on 2.5c value of an AA point). I wouldn't pay more than 2c in surcharges etc. for a point, however I usually try and keep it below 1cpp/1% surcharge for acquisition.
Your post very nicely demonstrates that "value" is contextual. I think one of the fundamental reason many people come to forums like this is they are keen to get more value out of their points than they cost. I wouldn't value some of these quite as high as you, nice as I'm sure SQ Suites are there's no chance I would book a paid F Suite, indeed I have yet to pay for J. I do agree with the general theory that you should use your own assessment of what you are prepared to pay to assess your own perception of value, not what the airline prices this at.
 

JohnK

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You can redeem a $9000 SQ Suite flight (oneway to Europe) for 112.6k points plus $500 fees, so you get a perceived value of 7.5c/p.
But would you actually pay $9000 for that flight? How much would you pay for it, i.e., how much do you actually save by using the points?
Perception is the key word.

I wouldn't pay more than ~$1500 for a return business class airfare to Asia.

With SQ that is 93,500 MR points + ~$500 in taxes and surcharges. The net value of a MR point is ~1c/point. Even if I stretched that airfare to $2000 the value increases slightly.

When VS was around the value was a little better but limited to HKG only as destination.
 

LittleFokker

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Perception is the key word.
.
or maybe relativity?

MH J SYD LHR ret is $6313 (admittedly which I'd never, ever, pay), yet exact same flight "points plus pay" is $3808 (inc) plus 1000 points. That makes each point "worth" 25c

I will pay $3.8K on MH. Where the points are priceless is that I don't have to spend 24 freakin hours stuffed down the back just to visit the relatives. :)

Of course if I wanted to spend only points (102K points + $1353) then the 101K difference would now make the points worth 2.4c ea.


EDIT: Apart from AirAsia when does one go for Aus->Asia $1500 J ?
 

Moopere

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It was a difficult question for me to answer a few years ago when I began this FF adventure. At some point you just have to place a stick in the sand and adjust your perception from there depending on how things go and what you do travel wise.

Despite my best efforts and wishes, most of my travel ends up being domestic and I'm pretty fond of VA flexi->J points upgrades as a result ... this reaps me a perceived value around 2.5-3c/p usually. I'm unlikely to part with points for much less than 2.5c each.

I understand the concept sometimes floated of only comparing those fares you'd actually buy with cash but for me its a little more complicated than that. For example, for leisure travel I'm fairly unlikely to stump up the $3-4K return pricing required for PER to the east coast in cash ... yet, in my perception there is a wide chasm between Y and J travel classes, even on the 332 where Y isn't all that horrid.

I'm probably the classic champagne taste / beer budget leisure traveller (hehe), so happy to pay the somewhat overpriced Flexi ticket price + 10K points to upgrade to J ... but how does one fairly and reasonably look at the value of those 10K points? Redeeming against domestic Y fares typically returns <1c/p in value, so if thats the measure, then the J ticket at say 500 for flexi + $100 in points value = $600 one way PER to say SYD in J ... but there are no tickets in J available for that price, whether a J ticket is _really_ worth $1500 (or whatever) is purely conjectural because the cash asking price _is_ $1500.

Originally I went through a large exercise of building routes and comparing pricing for a host of likely to take trips, then compared the J asking price in $$ to the cost in $+ points or even just points. After a lot of work it started to appear that the redemption value was falling around 3c/p for me ... sometimes higher, occasionally lower, but it was a reasonable starting point. I've not really had to readjust that figure for a couple of years now.
 

kkl

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May 14, 2011
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Well I can pay about 1.1% surchage per year, for mid 7 figures for MR points. After claiming back surcharges etc. Im still 37K out of pocket, assuming 5mil spend.

Selling close to 3million MR @ .01425/point, would be my break even point. thus being able to keep close to 2mil MR per annum.
 
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