Valuing an AirMile REDEMPTION
I've been meaning to post this for awhile but typing on my iPad is onerous. But here goes, not as lengthy if I was on a PC... But then you should all be relieved
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I think it's important to have a gauge of how to value an AirMile... At least for all us serious collectors here. We earn them strategically and we should certainly redeem them strategically. I still feel a slight sting when I redeemed AirMiles for an expensive hotel award without first calculating the value I was getting per AirMile.
I think the easiest way to calculate the value of an AirMile redemption is by comparing the Dream Miles to the Cash Miles value.
HoHum - 10.52 cents per AirMile
The most basic (and HoHum) calculation for valuing an AirMiles redemption is by comparing it to the most basic cash value:
95 cash AirMiles gets you a $10 instant discount off whatever you are purchasing at a number of locations.
That's 10.52 cents in value per AirMile when you redeem for a standard cash award ($10/95*100=10.52).
Certainly a redemption that gets 10.52 cents per AirMile can be viewed as pretty good. It gets the equivalent of a cash AirMile.
But I know that is HoHum and that we can up our game.
AirMiles with sriachi sauce - 14.28 cents per AirMile
A common promotion for redeeming AirMiles cash is - get 25 bonus AirMiles when you redeem 95 for $10.
When I say common though, it's not a weekly offer but I've seen it often enough where I feel I can reasonably rely upon several redemptions a year.
So you end up with $10 for 70 AirMiles. That's a much better redemption at 14.28 cents per AirMile value ($10/(95-25)*100=14.28). And I'd much rather wait for this promo and redeem my Cash AirMiles for a more favourable rate.
But I'm crazy so I'd much rather up my game to ...
An AirMiles Badass - minimum 18.18 cents per AirMile
Certainly not as frequent as the AirMiles with Sriachi Sauce promo, this is my minimum standard for my redemptions. Earn 40 bonus AirMiles when you redeem 95 Cash AirMiles for $10.
I recently used this at Rexall (to earn other bonus AirMiles of course).
So that puts an AirMile at 18.18 cents for the infrequent bonus cash redemption of redeem 95 AirMiles for $10 savings and get 40 bonus AirMiles.
I strategically earn and burn. And I'm happy to wait for these promos to maximize my value per point. I just recently adjusted my Cash Miles to 10% so that I could take advantage of the higher end bonus. I put the Cash Miles slider back to zero once I hit a measly three redemptions because I know I can do better with Dream Miles.
But it's also nice to pay zero (or almost) cash for my typical Rexall spend $30 earn 50 AirMiles stacked with the spend $25 get $5 off coupon.
Of course, the Gold Standard redemption value is....
Your best one to date!
But I've reconciled that strategy will drive me nuts.
I've only been collecting AirMiles seriously since this time last year. I'm trying not to regret not jumping on this sooner. Oh, the past deals I've read about. Sigh.
Anyway, if you've read this far, please share anything I've missed or got wrong.
I've seen some awesome redemptions on this thread! You guys (gals mostly) are truly badass.
(Typed on iPad - please excuse typos and formatting inconsistency)