{"id":293039,"date":"2024-12-30T12:45:02","date_gmt":"2024-12-30T17:45:02","guid":{"rendered":"https:\/\/milesopedia.com\/?p=293039"},"modified":"2025-01-01T01:57:25","modified_gmt":"2025-01-01T06:57:25","slug":"points-value-target","status":"publish","type":"post","link":"https:\/\/milesopedia.com\/en\/news\/points-value-target\/","title":{"rendered":"Points value: Is there a right or wrong target?"},"content":{"rendered":"

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Calculating points value<\/strong> is very easy; we detailed all the steps you should go through with your thought process in this article<\/a>. However, whether to redeem your points or pay with cash may linger on.<\/p>\n

Indeed, you may have already consulted our semi-annual estimate of the value of Reward Points in Canada<\/a> and found out about the target points valuation we<\/i> give, but is it the proper valuation for you<\/i>?<\/p>\n

Ultimately, how can you know the accurate point valuation for your<\/i> situation?<\/p>\n

In this article, I chose Aeroplan<\/a> to demonstrate the thought process you should go through, but it can apply to all airline and hotel loyalty programs.<\/p>\n

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<\/div>\n <\/div>\n\n <\/div>\n<\/article>\t\t<\/div>\n\n\t\t<\/div>[\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”What are Aeroplan points worth?” el_id=”what_are_aeroplan_points_worth_”][vc_column_text]<\/p>\n

Let’s look at possible points valuations for Aeroplan<\/span><\/a>, Air Canada\u2019s loyalty program. You can redeem your points in many ways: purchase airline tickets, merchandise, gift cards, etc.<\/p>\n

As this program is intended for air travellers, the best use will be for purchasing airline tickets. This explains the value of 2\u00a2 per point<\/b>. Here\u2019s how we narrowed it down to that number:<\/p>\n

[\/vc_column_text][vc_column_text]<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
REDEMPTION<\/td>\nVALUE<\/td>\n<\/tr>\n<\/thead>\n
Flights (Business Class, First Class)<\/td>\n> 6 \u00a2\/point<\/td>\n<\/tr>\n
Flights (Short-haul)<\/td>\n4 \u00a2\/point<\/td>\n<\/tr>\n
Flights (Medium-haul)<\/td>\n3 \u00a2\/point<\/td>\n<\/tr>\n
Airline ticket (Long-haul)<\/td>\n2 \u00a2\/point<\/td>\n<\/tr>\n
Gift cards (Air Canada)<\/td>\n1\u00a2\/point<\/td>\n<\/tr>\n
Car rentals<\/td>\n0.9\u00a2\/point<\/td>\n<\/tr>\n
Air Canada Vacation Packages<\/td>\n0.83 \u00a2\/point<\/td>\n<\/tr>\n
Hotels<\/td>\n0.80 \u00a2\/point<\/td>\n<\/tr>\n
Gift cards<\/td>\n0.7\u00a2\/point<\/td>\n<\/tr>\n
Merchandise<\/td>\n0.7\u00a2\/point<\/td>\n<\/tr>\n
Average value<\/strong><\/td>\n2 \u00a2\/point<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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As you can see, the 2\u00a2 per point is an average value we gave because, as per experience, it is very common and easy for anyone to achieve that target.<\/p>\n

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To assess the value of your points, you need to identify the flights you want to purchase using Aeroplan points. Then, consult Google Flights<\/a> or the airline’s website to compare the prices in points versus money by searching for the value of the same itinerary but using cash.<\/p>\n

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For example, you can fly to San Diego<\/a>, a beautiful family destination<\/a>, and reach the 2\u00a2 per point target while travelling in economy class.<\/p>\n

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(2,766 $ \u2013 546.68$) \u00f7 98,400 \u00d7 100 = 2.26 \u00a2<\/p>\n<\/blockquote>\n

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When someone is flying in economy as compared to business class, the number of points needed for the redemption of the latter is usually twice the cost of the former.<\/p>\n

On the other hand, when you are paying in cash, the price isn\u2019t 2X higher but more likely to be 3X, 4X or 5X.<\/p>\n

Indeed, you can see that the business class award fare is not even 2X the fare of economy class on this screenshot:<\/p>\n

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Therefore, it is easier to achieve a higher point valuation when flying in business class since the number of points you need doesn\u2019t go up as the cash price does. Good luck finding business class cash fares that are only twice the cost of economy!<\/p>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Points Value – Opportunity Cost” el_id=”points_value_-_opportunity_cost”][vc_column_text]<\/p>\n

What if the place you wish to visit doesn\u2019t hit the 2\u00a2 per point target for your dates? Remember, award fares on Air Canada<\/a> and all cash fares are dynamically priced, so it will depend on your desired days to travel.<\/p>\n

For example, we often see this kind of result when searching for award fares to Europe<\/a>; because the competition is fierce, cheap cash fares can easily be found, and your point valuation<\/strong> might turn around the 1.5\u00a2 per point mark like these flights to Portugal<\/a>:<\/p>\n

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(4,959 $ \u2013 475.80$) \u00f7 285,200 \u00d7 100 = 1.57 \u00a2<\/p>\n<\/blockquote>\n

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Suppose your usual objective is to earn Aeroplan points to travel to Europe in economy class. In that case, you will likely always linger around that mark and only occasionally go above the 2\u00a2 per point value.<\/p>\n

However, should you still redeem your points or settle with cash?<\/p>\n

You must consider opportunity cost and not just points valuations. It means asking yourself these questions:<\/p>\n