Determining if an award is worth it

Frequent Miler made a couple of posts with a basic guide to determining whether a booking is worth it when you use your points.  His advice is pretty good, and presents good guidelines to figuring out if you should use points or not.  However, it is also important to keep your goals in mind.  If your goal is to minimize out of pocket expense of any kind, and you have earned your miles through signup bonuses (as opposed to regular credit card spending), then it’s perfectly acceptable to redeem awards that are “not worth it” by the guidelines presented.

Without further ado, here is Frequent Miler’s guide for determining if an airline award is worth it and for determining if a hotel award is worth it.

  • Chris

    That is a good guideline for beginners, but I prefer to almost always save my miles to use for premium-cabin award international resumptions.  For int’l business class I find award miles are worth at least four cents, while they are worth as much as seven cents towards first class awards.  So I’ll just buy my ticket for a domestic flight even if an award ticket is available at the equivalent value of 1.5 cents per mile.