Introduction
Credit Card Points
Airline Miles
Hotel Points
Air Canada Aeroplan – 1.3 cents/mile
In November I valued Aeroplan miles at 1.5 cents each, which was already after their huge devaluation, though I think their value has gone down even further. Since then Lufthansa has full-on stopped releasing first class award space more than a couple of weeks before departure, eliminating quite a few redemption opportunities in advance. Furthermore, fuel surcharges have continued to rise as oil prices continue to increase, so the cost of redeeming Aeroplan awards keeps going up.
Best credit card(s) for earning Air Canada Aeroplan miles: Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card, which offer one SPG point per dollar spent on all purchases, and two SPG points per dollar spent at SPG properties. Points can be transferred to Aeroplan at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 Aeroplan miles per dollar spent.
Alaska Mileage Plan – 1.5 cents/mile
In November I valued Alaska miles at 1.4 cents each. In absolute terms I don’t think the miles have appreciated one bit, since the program has more or less remained the same. I do, however, think the miles have relatively appreciated, given that they partner with Cathay Pacific, which is one of the few airlines that continues to generously release transpacific award space.
Later this year it should be possible to redeem Alaska miles for travel on Emirates, so if that award chart looks good their miles could appreciate even further.
The thing preventing Alaska miles from being more valuable is that they don’t let you mix partners on an award ticket. While they have tons of partners, they don’t let you mix and match their partners on award tickets, which is a real challenge for many destinations. So my valuation of Alaska miles is based almost exclusively on the ease with which one can redeem for travel on Cathay Pacific.
Best credit card(s) for earning Alaska Mileage Plan miles: Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card, which offer one SPG point per dollar spent on all purchases, and two SPG points per dollar spent at SPG properties. Points can be transferred to Mileage Plan at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 Mileage Plan miles per dollar spent.
American AAdvantage – 1.8 cents/mile
American miles have consistently been increasing in value for me over the past couple of years. I even made a post about it recently. Lately American has overtaken United, in my opinion, when it comes to the ease with which one can redeem for international first class award tickets.
Last year American launched a partnership with Etihad, which has a solid first class product and excellent award availability to the Middle East and India. Cathay Pacific continues to have phenomenal first and business class award availability, releasing two first class award seats on many routes. Furthermore, at 135,000 American miles roundtrip it’s one of the most economical ways to get to Southeast Asia.
United miles are still more valuable for travel to Europe, though not by a huge margin anymore, ever since Lufthansa stopped releasing first class award space in advance.
So for me it has gotten to the point where American miles are as valuable as United miles, which is a first.
Best credit card(s) for earning American AAdvantage miles: Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card, which offer one SPG point per dollar spent on all purchases, and two SPG points per dollar spent at SPG properties. Points can be transferred to AAdvantage at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 AAdvantage miles per dollar spent.
British Airways Executive Club – 1.1 cents/Avios
Previously I valued British Airways Avios at 1.3 cents each, and obviously they have gone down substantially in value since then due to their award chart devaluation. That being said, there are still some great redemption opportunities using British Airways Avios, in particular for shorthaul flights in coach or business class, where you can get a roundtrip for as few as 9,000 Avios. So while it’s far from my favorite program, there is still some value in the program.
Best credit card(s) for earning British Airways Avios points: British Airways Visa Card, which offers 1.25 British Airways Avios points per dollar spent. For more flexibility the Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card are also good, given that they offer one SPG point per dollar spent on all purchases, and two SPG points per dollar spent at SPG properties. Points can be transferred to British Airways at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 Avios points per dollar spent. Lastly, another great option is the American Express Premier Rewards Gold Card, which offers 3x points on airfare, 2x points on gas and groceries, and 15,000 bonus points for any year in which you spend $30,000 on the card. Points can be transferred 1:1 to British Airways.
Delta SkyMiles – 1.1 cents/mile
I’m torn on this one, since I feel like I need to lower my valuation of Delta SkyMiles, given that I valued them at 1.1 cents per mile last November.
Since then Virgin Australia (one of their more useful partners) has just about completely stopped releasing business class award space. Furthermore, Air France has drastically reduced the amount of business class award space they release. And it really is a drastic change, since routes that were previously available almost every day hardly have any availability anymore.
But still, I can’t bring myself to value them at less than 1.1 cents each. At the end of the day there’s still some Air France transatlantic business class award space out there for 100,000 SkyMiles roundtrip, and I can’t value a business class award at less than $1,100 plus tax. And the decrease in Air France transatlantic award availability isn’t all that different than what we’ve seen with Lufthansa lately.
Also, a reader recently pointing out to me that Delta miles can at least easily be used for travel to South America does make them a bit more valuable, in my opinion.
Best credit card(s) for earning Delta SkyMiles: American Express Premier Rewards Gold Card, which offers 3x points on airfare, 2x points on gas and groceries, and 15,000 bonus points for any year in which you spend $30,000 on the card. Points can be transferred 1:1 to Delta SkyMiles.
United MileagePlus – 1.8 cents/mile
Nothing has really changed with MileagePlus since November, so you’re probably wondering why my valuation of United miles has gone down by 0.2 cents per point.
Unfortunately it’s because premium cabin award space isn’t even nearly as good as it used to be. Ever since Lufthansa stopped releasing first class award space to partner airlines more than a couple of weeks before departure, the transatlantic and transpacific options in first class really are limited.
The saving grace with United miles are twofold:
a) Changes are cheap, at most $75
b) United lets you make changes close to departure and after travel commences, meaning if you’re willing to wait you can still pull off “masterpiece” awards.
Still, it’s not quite as fun as it used to be.
Best credit card(s) for earning Mileage Plus miles: Chase Sapphire Preferred Card, which offers double points on dining and travel and a 7% annual points dividend, and the Chase Ink Bold Business Card, which offers 5x points on office supply stores and 2x points on gas and hotels, which can be transferred 1:1 to United. Alternatively the United Club Card earns 1.5 miles per dollar spent and offers lounge access, though comes with a hefty annual fee.
US Airways Dividend Miles – 1.5 cents/mile
In November I valued US Airways miles at 1.7 cents each, so much like the above the decrease in value accounts for the lack of premium cabin award space in advance, in particular on Lufthansa. The added challenge with US Airways is that they charge $150 for any ticket changes, and don’t allow any changes once travel commences.
So basically US Airways is great to the extent that you can book a first class award from the US to North Asia for only 120,000 miles, though it can be nearly impossible to maximize like I did in December.
Their off peak awards are also a fantastic value.
Best credit card(s) for earning US Airways Dividend miles: Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card, which offer one SPG point per dollar spent on all purchases, and two SPG points per dollar spent at SPG properties. Points can be transferred to Dividend Miles at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 Dividend Miles per dollar spent. Sometimes they even offer substantial bonuses for points transfers from SPG.
Full disclosure: I earn a referral bonus for anyone that signs up through the above links. It’s the best available offer, and of course I’m very appreciate of your support, regardless of whether or not you use my links.