Reasonable Redemption Values

Tag Archives for Reasonable Redemption Values.

Our 5 Best Value Hotel Award Redemptions Of 2018 (And One That Provided Even Better Value)

Executive Suite at Grand Hyatt San Antonio

My wife and I have just completed the first year of our 5 year, 50 state road trip. During that time we’ve stayed in more than 60 cities, 47 different hotels, 18 Airbnb properties and with 5 sets of family and friends. Hotel loyalty schemes have helped make the trip affordable as 129 nights at 24 different hotels were booked using points in 2018. I try to maximize our points as much as possible which…

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Points & miles changing fortunes. Which points are worth more (or less) than before?

Credit Card Trends

I maintain point values (Reasonable Redemption Values) for each of the major travel and credit card points programs.  Most of the values are derived from a mix of empirical data and calculations based on logical assumptions.  The results are objective and unbiased.  Up-to-date numbers can always be found here: . RRVs made it possible for me to create objective estimates of the value of credit card signup bonuses.  From those estimates, I created unbiased credit…

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Airline Miles are worth 1.4 cents each. A simplified approach to Reasonable Redemption Values.

One credit card offers a $500 signup bonus.  Another offers 40,000 airline miles.  Which is better? One online portal offers 10% cash back when shopping at Macy’s.  Another offers 8X airline miles.  Which is better? Why I care As a blog author, I’m proud to display unbiased credit card sign-up offer rankings: Best Business Card Offers Top 10+ Transferable Points Credit Card Offers Top 10+ Airline Credit Card Offers Top 10+ Hotel Credit Card Offers…

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A Reasonable Redemption SNAFU

They’re barely out of the gate, but already there’s a problem with Reasonable Redemption Values.  Reasonable Redemption Values (RRVs) are estimates of the redemption value one might reasonably get from various types of miles and points.  In yesterday’s post, “Reasonable Redemption Values taking shape,” I presented the following table that shows the RRVs in cents per point for various airlines and cabins: RRVs based on estimated ticket value:   American Delta Southwest United Domestic Economy…

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Reasonable Redemption Values taking shape

Slowly, but surely, “Reasonable Redemption Values” (RRVs) are taking shape for various types of points and miles.  When I last wrote about this, I showed how I computed RRVs for United MileagePlus miles.  Since then, I made minor adjustments to the RRV spreadsheet and I added estimates for American Airlines and Delta.  Since US Airways is working on folding into the AA program, I don’t think its worth adding them to the mix at this…

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Reasonable Redemption Values. A work in progress

Last week I suggested an approach for estimating “reasonable redemption values” of points and miles (please see “Pondering Reasonable Redemption Values”).  The idea is to estimate how much value one might reasonably expect to get from specific types of points or miles.  When estimating the redemption value of points, it is necessary to estimate the number of points that will be needed for an award and the value of that award.  The word “reasonable” here…

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Pondering Reasonable Redemption Values

Figuring out the value of airline miles or hotel points is difficult.  In fact, I’ve argued in the past that it is impossible (see “Impossible point valuations and the joy of free”).  And, so, rather than estimate the value of points and miles (except in certain specific cases such as with Southwest Airlines points, and BarclayCard Arrival points) I have previously chosen to estimate the “Fair Trading Price”.  The Fair Trading Price is an estimate…

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