Valuing AMEX points?

AK47UK

Hi all,

This is something that has confused me for so long and has resulted in me just accumulating points as I have not dared spend them in case I mess up the value. I have read all of the blogs and they tend to aim for 1.5p per point on redemptions and sometimes get better but this seems to be based on the full cash cost of the flight rather than what I would pay for a flight. I am happy to fly economy, I wouldn't pay hundreds more on the same flight for a better seat so when I have looked into spending airmiles in the past I am essentially spending 100,000 points plus around the cost of what I would pay for an economy seat, so the points just get me an upgrade. 

I had an email today from AMEX where they are doubling the value if I pay with points for purchases, now a point is worth 0.9p so in theory (I wouldn't be buying flights now, just an example) I could buy an economy seat and pay with points.

How do you all value and use your points? I think now might be the time to spend a load on this double up promotion as it covers anywhere that accepts AMEX or paypal but just wanted to make sure I have not overlooked/misunderstood anything!

Thanks

Sandtree

I don't value them.

I am similar... any short or mid haul flight I am fine in economy, if its a night time shorter long haul flight or a very long haul flight then I may consider premium economy (especially if I have things to do on the day of landing). I do appreciate going Business or First but would never put my own hand in my pocket to pay the kinds of prices (unless one of those odd times where its $10 difference).

I tend to use all my points on purchasing flights in business or first, especially if they are originating from a low tax point of origin, but don't try to workout the value per point as I would never pay full price so feel wrong to do that and yet clearly it is worth more than an economy seat (on a First flight back from HK that cost $50 in cash we probably drank a pair of economy tickets worth of Krug champagne and thats before you consider the rest of the food, drinks, amenities etc).  

Maybe having a Tesco Clubcard Credit Card would have more real world value but getting £5 off your shopping every so often to me isnt as good as the experience of going off for an anniversary or big birthday and getting the benefits of travelling in a higher class (even if you wouldnt pay for it directly)

D3xt3r5L4b

There are various websites that will give you their perceived valuation on the points value - HeadForPoints, ThePointsGuy etc.

AK47UK

D3xt3r5L4b said:

There are various websites that will give you their perceived valuation on the points value - HeadForPoints, ThePointsGuy etc.

Thanks, they are the sites I was referring to that value them but it seems they value them at the cash price of the flight. One of them gave scenarios as examples and one scenario was £1750pp for a flight to the US, most I have ever spent on a flight was something like £800 to SE Asia over Xmas/NYE and economy was more than comfortable enough as it was on a good airline. So the value they work out is false as I'd not spend that much on a flight.

AK47UK

Sandtree said:

I don't value them.

I am similar... any short or mid haul flight I am fine in economy, if its a night time shorter long haul flight or a very long haul flight then I may consider premium economy (especially if I have things to do on the day of landing). I do appreciate going Business or First but would never put my own hand in my pocket to pay the kinds of prices (unless one of those odd times where its $10 difference).

I tend to use all my points on purchasing flights in business or first, especially if they are originating from a low tax point of origin, but don't try to workout the value per point as I would never pay full price so feel wrong to do that and yet clearly it is worth more than an economy seat (on a First flight back from HK that cost $50 in cash we probably drank a pair of economy tickets worth of Krug champagne and thats before you consider the rest of the food, drinks, amenities etc).  

Maybe having a Tesco Clubcard Credit Card would have more real world value but getting £5 off your shopping every so often to me isnt as good as the experience of going off for an anniversary or big birthday and getting the benefits of travelling in a higher class (even if you wouldnt pay for it directly)

I didn't realise you could get better value if you leave a low tax airport, I will look into that.

I flew Virgin economy to HK and was really happy with the comfort and amenities, I also flew economy to a few other countries in Asia with no issues. As sad as it sounds, I like flying so don't usually try to go to sleep, instead rinse the movies and drinks. My points are worth quite a lot of cash with this deal so it sounds like the choice is a luxurious flight or take the money.

Sandtree

AK47UK said:

Sandtree said:

I don't value them.

I am similar... any short or mid haul flight I am fine in economy, if its a night time shorter long haul flight or a very long haul flight then I may consider premium economy (especially if I have things to do on the day of landing). I do appreciate going Business or First but would never put my own hand in my pocket to pay the kinds of prices (unless one of those odd times where its $10 difference).

I tend to use all my points on purchasing flights in business or first, especially if they are originating from a low tax point of origin, but don't try to workout the value per point as I would never pay full price so feel wrong to do that and yet clearly it is worth more than an economy seat (on a First flight back from HK that cost $50 in cash we probably drank a pair of economy tickets worth of Krug champagne and thats before you consider the rest of the food, drinks, amenities etc).  

Maybe having a Tesco Clubcard Credit Card would have more real world value but getting £5 off your shopping every so often to me isnt as good as the experience of going off for an anniversary or big birthday and getting the benefits of travelling in a higher class (even if you wouldnt pay for it directly)

I didn't realise you could get better value if you leave a low tax airport, I will look into that.

I flew Virgin economy to HK and was really happy with the comfort and amenities, I also flew economy to a few other countries in Asia with no issues. As sad as it sounds, I like flying so don't usually try to go to sleep, instead rinse the movies and drinks. My points are worth quite a lot of cash with this deal so it sounds like the choice is a luxurious flight or take the money.

Tends more to be "country" than airport, though there are some exceptions. When you either book reward flights or pay for upgrades you still have to pay the taxes, fuel surcharge etc in cash.  So travel more than 2,000 miles in business or first class from the UK other than LHR and you've got  £515 to pay straight away in taxes (LHR is slight more).

Other countries are much cheaper to almost nothing. Unfortunately most of them are further afield but if you look on points based sites may recommend flying to Ireland or Germany first before then taking your long haul flight but there is a but... either you must have two separate bookings (so your at risk if the first flight is delayed) or there must be a 24 hour layover there in which case a hotel etc will devalue the saving. Personally I go with option C and pay cash in a standard cabin on my way out and then use points and tiny cash for a Business/First flight back (return leg of flights are always more painful).

AK47UK

Sandtree said:

AK47UK said:

Sandtree said:

I don't value them.

I am similar... any short or mid haul flight I am fine in economy, if its a night time shorter long haul flight or a very long haul flight then I may consider premium economy (especially if I have things to do on the day of landing). I do appreciate going Business or First but would never put my own hand in my pocket to pay the kinds of prices (unless one of those odd times where its $10 difference).

I tend to use all my points on purchasing flights in business or first, especially if they are originating from a low tax point of origin, but don't try to workout the value per point as I would never pay full price so feel wrong to do that and yet clearly it is worth more than an economy seat (on a First flight back from HK that cost $50 in cash we probably drank a pair of economy tickets worth of Krug champagne and thats before you consider the rest of the food, drinks, amenities etc).  

Maybe having a Tesco Clubcard Credit Card would have more real world value but getting £5 off your shopping every so often to me isnt as good as the experience of going off for an anniversary or big birthday and getting the benefits of travelling in a higher class (even if you wouldnt pay for it directly)

I didn't realise you could get better value if you leave a low tax airport, I will look into that.

I flew Virgin economy to HK and was really happy with the comfort and amenities, I also flew economy to a few other countries in Asia with no issues. As sad as it sounds, I like flying so don't usually try to go to sleep, instead rinse the movies and drinks. My points are worth quite a lot of cash with this deal so it sounds like the choice is a luxurious flight or take the money.

Tends more to be "country" than airport, though there are some exceptions. When you either book reward flights or pay for upgrades you still have to pay the taxes, fuel surcharge etc in cash.  So travel more than 2,000 miles in business or first class from the UK other than LHR and you've got  £515 to pay straight away in taxes (LHR is slight more).

Other countries are much cheaper to almost nothing. Unfortunately most of them are further afield but if you look on points based sites may recommend flying to Ireland or Germany first before then taking your long haul flight but there is a but... either you must have two separate bookings (so your at risk if the first flight is delayed) or there must be a 24 hour layover there in which case a hotel etc will devalue the saving. Personally I go with option C and pay cash in a standard cabin on my way out and then use points and tiny cash for a Business/First flight back (return leg of flights are always more painful).

Awesome idea, will definitely look at trying that, thanks!

Ngozi

AMEX or AVIOS points?
If AMEX, lots of uses for them, as you can transfer for hotels (think some have a 1:3 exchange rate), vouchers, holidays and I believe depending on what card you have, some people are being able to use their points to pay their credit balance.

If Avios;
As Sandtree mentioned, flying from different airports usually help, Spain/France/Germany usually have a lower tax and Avios can't be used to pay the tax on a flight.
Also, moving them to Iberia Airlines can often get you the same price flight for less points as they're part of the IAG group.

As for value, like you said, so many sites have loads of methods of working out the value but I view it as a personal thing.
True, short flights within Europe are a bad use of the points in term of true value, paying an economy price for long-haul but sitting in Business Class or First Class is better. 
Just depends on your perspective, kind of like saying, would you like to save a few hundred pound on an economy flight or a grand on a first class flight? You personally wouldn't spend that much on a first class flight so you might not see it as a saving, but equally, using points for an economy flight you might aswell not collect Avios (igonring sign-up promos etc...) and go with another reward scheme and use the money you save through that and put it towards flights as it would probably be better value.

Ngozi

Oh, if looking at first class flights, best research the plane/flight to see what their first class amenities look like.
If flying an actual Iberian plane, their first class doesn't always match up to the awesome adverts you see, more so if flying Central/Southern America, some are great but not all of them.
Don't want to spend all those points expecting something to a Qatar first class flight and end up with a glorified Wizzair flight.

Sandtree

Ngozi said:

Don't want to spend all those points expecting something to a Qatar first class flight and end up with a glorified Wizzair flight.

But ending up on a Etihad in the Residency wouldn't be too bad a use of points... I mean the bed you get looks inviting (which is on top of both your chairs and lounge (and yes this is on the plane)

AK47UK

Ngozi said:

AMEX or AVIOS points?
If AMEX, lots of uses for them, as you can transfer for hotels (think some have a 1:3 exchange rate), vouchers, holidays and I believe depending on what card you have, some people are being able to use their points to pay their credit balance.

If Avios;
As Sandtree mentioned, flying from different airports usually help, Spain/France/Germany usually have a lower tax and Avios can't be used to pay the tax on a flight.
Also, moving them to Iberia Airlines can often get you the same price flight for less points as they're part of the IAG group.

As for value, like you said, so many sites have loads of methods of working out the value but I view it as a personal thing.
True, short flights within Europe are a bad use of the points in term of true value, paying an economy price for long-haul but sitting in Business Class or First Class is better. 
Just depends on your perspective, kind of like saying, would you like to save a few hundred pound on an economy flight or a grand on a first class flight? You personally wouldn't spend that much on a first class flight so you might not see it as a saving, but equally, using points for an economy flight you might aswell not collect Avios (igonring sign-up promos etc...) and go with another reward scheme and use the money you save through that and put it towards flights as it would probably be better value.

They are AMEX points but most sites value the flights/hotels conversions as best value. I wouldn't pay £200-250/night for a generic hotel room, I rather use AirBnB and rent a whole apartment as we usually find quite unique places. When we go away for our annual trip we tend to backpack as we like an adventure rather than relaxation, we will then book some luxury nights as a rest but would try to find a boutique type place rather than an international hotel. 

Thanks for all the tips, I will definitely play around with departure countries to see if we can get a good deal on a better flight!