Points and miles are currencies worth a certain amount of money. However not all of them are created equal. Knowing how much value each point/mile gives you is essential in knowing which program to get into. An "Award Redemption" is what you call a flight or a hotel stay when you use points/miles for travel. Sometimes when cash prices are very high or very low, it's easy to decide whether to use cash or miles. Sometimes it isn't as easy to decide. So here is how we can determine if we should use cash or miles and what programs are worth more per point/mile.
Here is a simple example, if 15,000 GetGo points from Cebu Pacific can get you a ticket to Tokyo which is sold at PHP 8,000, then each GetGo point is worth around PHP 0.53. If Philippine Airlines' Mabuhay Miles is offering a ticket to Tokyo for 14,000 miles and the cash price is Php 10,000, then each Mabuhay Mile is worth around PHP 0.71. Therefore Mabuhay Miles has more value with that redemption.
The formula to remember is CASH PRICE DIVIDED BY TOTAL POINTS/MILES = VALUE per point/mile.
The whole point of computing for the value for your points and miles is to never pay more for a flight than you would if you used cash (credit card). Sometimes it makes sense to just pay instead of using your points/miles and that is okay.
There are tons of other factors to consider such as which credit cards transfer to what loyalty programs to what airline has more award availability. Knowing how much each point/mile is a basic necessity and brings you one step closer to maximizing them.
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