How to Choose Between Paying for a Flight With Cash or Miles
One of the common travel-related concerns is whether to use cash or miles to buy a ticket. Both options have their pros and cons, so it’s important to weigh them carefully if you decide to choose between them. Here’s what you should consider.
Are rewards available for your dates and destination?
If there are no premiums available for your destination on the dates you want to travel, there’s nothing to argue about, so check that first. If there are no available seats at all, you will either have to change your dates or destination, or pay for your tickets in cash.
Do you have enough miles?
If you don’t think you can earn the required number of points for your upcoming trip, it might make sense to just pay cash. The availability of bonuses changes frequently, so don’t expect them to be available the week or month you have miles. If you are only missing a few miles, it may make sense to buy the miles you need to book your ticket.
How much is your ticket?
Consider how much your flight will actually cost in cash. If it’s a cheap flight, it may not make sense to use miles as you can just pay for it right away and then save those miles for a more expensive flight. On the other hand, if you are currently looking for a really expensive flight, redeeming your miles can help you save a lot of money. Once you know the value of your flight in miles compared to cash, you can calculate the potential value you could earn from your miles using the formula: (Cash Flight Price – Award Taxes and Fees) / Flight Cost miles.
What are the travel restrictions?
Check out the restrictions that may apply to using your miles. For example, some airlines charge a booking fee for award tickets booked up to 21 days prior to departure, while others do not. On the other hand, award tickets sometimes have more flexible change and cancellation policies than cash tickets, so if your plans aren’t completely set in stone or you value the ability to make changes on the fly, miles can give you more flexibility.
How do you rate your miles?
Depending on the airline, program and how you travel, your miles may be worth more or less. You can see how various other websites rate different types of miles as a starting point, but in the end you will have to decide what your personal worth is. Most airline miles are priced around 1.2 cents per mile or higher (sometimes much higher). As a general rule, you should not redeem airline miles for less than one cent per mile.
How many miles are you giving up?
When you book a ticket with cash, you will earn miles per flight, but when you book a ticket with miles, you will not. If you really want to make sure you’re getting the best deal, you should also consider the value of the miles you’re losing when you book an award ticket. Figuring out the best airline to credit your flight with can be a lot of work, but if you really value the miles you earn, it might be worth considering.