Cashing in miles, but not on flights
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Both Keith Alexander and Tim Winship chime in on airlines offering ways to spend frequent flyer miles on non-travel items.
For some people, with enormous mileage balances, this may be worthwhile. But for most people, it’s a lousy way to spend the miles.
Take the Samsung 42″ plasma HDTV that United is willing to “sell” you for a mere 350,000 miles. The value of these miles, in my book, should be at least $5950 (at 1.7 cents per mile). At the preferred redemption rate of 2 cents per mile, that TV had better cost $7000.
It doesn’t. It’s probably worth less than half that. But I say “probably” because the United site doesn’t actually tell you the model number of the television. You can’t even make a fair miles-to-cash comparison.
Besides, if you bought that TV with a mileage-earning credit card, instead of paying for it with miles, you’d be well on your way to earning a better value for award redemption, such as business class tickets or upgrades.
tags: travel | air travel | frequent flyer miles | shopping
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March 22nd, 2006 at 2:52 pm |
I understand your complaint about redemption rates on merchandise. However, there are many people, like myself, who could care less about travelling more. I travel far too much as it is for work, and am able to structure my work itineraries to visit my relatives on most weekends without redeeming additional miles. Why would I want to travel for my vacation when I already spend more than 180 nights/year in a bed other than my own?
I love the option of converting miles (which are essentially useless to me) into merchandise or some other redemption option. I am extremely excited about United’s decision to give us this option. I just wish that AAmerican would do the same.
Don’t they understand that I travel too much as it is, I DON’T WANT MY “REWARD” TO BE MORE TRAVEL.