How much do you value your MR points?

Discussion in 'American Express Rewards' started by kkl, May 6, 2014.

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  1. kkl

    kkl Member

    May 14, 2011
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    As per title. 1.5c/p ? or more?
     

  2. Danger UXB

    Danger UXB Active Member

    Jun 3, 2008
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    Never less than 3c/p but closer to 5c/p or more is better
     
  3. Cynicor

    Cynicor Established Member

    Jun 13, 2007
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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.
     
  4. lovestotravel

    lovestotravel Senior Member

    Sep 18, 2008
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    I only buy toasters or gift cards with my points so about 0.6cents per point!
     
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  5. knasty

    knasty Active Member

    Mar 11, 2010
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    Lovestotoast? :) I am willing to pay up to 1.5% surcharge to use Amex vs a non-earning payment method so about 1.5 on earning and 3+ on redemption.
     
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  6. LittleFokker

    LittleFokker Member

    Apr 5, 2012
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    Sydney
    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.
     
  7. JohnK

    JohnK Veteran Member

    Mar 22, 2005
    39,970
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    I value them at ~1c/MR point and sometimes as high as ~1.5c/MR point.
     
  8. Beta4Me

    Beta4Me Established Member

    Nov 10, 2012
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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.
     
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  9. lovestotravel

    lovestotravel Senior Member

    Sep 18, 2008
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    Yep these are exactly my thoughts, and yes Suites is a good redemption!
     
  10. exp1k

    exp1k Member

    Oct 29, 2011
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    41
    CBR
    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.
     
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  11. Beta4Me

    Beta4Me Established Member

    Nov 10, 2012
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    #11 Beta4Me, May 7, 2014
    Last edited: May 7, 2014
    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.
     
  12. equus

    equus Active Member

    Jul 22, 2008
    801
    223
    BNE
    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.
     
  13. burmans

    burmans Senior Member

    Feb 21, 2006
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    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.
     
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  14. JohnK

    JohnK Veteran Member

    Mar 22, 2005
    39,970
    8,532
    BNE, SYD and CNX
    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.
     
  15. LittleFokker

    LittleFokker Member

    Apr 5, 2012
    237
    151
    Sydney
    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 ?
     
  16. froggerADL

    froggerADL Established Member

    Jun 9, 2010
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    Avianca Lifemiles on *A when buying points with a 100% bonus (or F for a little bit more with TG SYD-BKK).
     
  17. burmans

    burmans Senior Member

    Feb 21, 2006
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    You need to expand your reading, for a start would suggest ATO, USDM, AA and Lifemiles forums.
     
  18. LittleFokker

    LittleFokker Member

    Apr 5, 2012
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    Ah! of course. I had actually been thinking retail prices rather than FF.
     
  19. Moopere

    Moopere Established Member

    Feb 10, 2010
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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.
     
  20. kkl

    kkl Member

    May 14, 2011
    204
    11
    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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