To buy or not to buy airline miles, that’s the question. And we’re here to help you solve it!
When you’re looking to travel on a budget, it’s important to understand all the facets that come with travel, including the use of miles to pay for flights. In some instances if you can’t afford a flight, it’s a better deal to buy miles to pay for it instead. However, that’s not always the case. Let’s get into more details of when it’s best to buy airline miles, and other times when it’s not smart.
When is it right to buy airline miles?
Buying miles instead of paying for a flight with cash can help you save money in certain cases. A typical rule of thumb if you’re choosing to use miles, is that they should be valued at 2 cents per mile or more. Most common situations where buying miles can be a smarter option include when miles are expiring or when you need a few extra miles to top off for a redemption.
How do you calculate the reward value of airline miles?
Take the total cash price of the ticket and divide it by the amount of miles it would take to cover the flight. For example, if a ticket costs $600 or 60,000 miles you’d get 1 cent per mile. Yet, if the same $600 flight was worth just 20,000 miles, you’d be getting 3 cents per mile. The latter scenario is when it might be a good idea to purchase airline miles instead of buying an airline ticket with cash.
Why do you need to calculate the value of airline miles?
Many airlines price their miles differently. This makes it tricky as a customer to know when it’s a good deal or not. Thus, it’s important to do the calculation on your own so you can make an educated judgement on the best way to spend your money.
When is it bad to buy miles?
It’s a bad idea to buy miles when the cash price of the ticket costs less than it would to purchase the amount of miles needed to cover the flight. This often occurs outside of promotional periods and when purchasing economy seats.
What should you note when using purchased miles?
Passengers do not earn miles on trips they used miles to pay for. Moreover, if you’re looking to improve your flyer status, buying miles typically isn’t helpful. Additionally, purchasing miles can tack on additional fees such as transaction fees and taxes.