One of the most commonly questions that I’m often asked is: How do you earn so many miles and points? Beyond earning credit card bonuses, I’ve already outlined ways in which you can earn miles and points on everyday shopping as well. However, earning is just one part of the equation. There’s plenty of chatter and research about the value that each mile or point represents. While these should not be followed as hard numbers, valuations do serve as a decent guide to those who are just new to this space.
What’s the real value of miles and points?
I’ve been earning and redeeming miles and points for over 10 years now. I got into the space thanks to corporate travel which started in 2012, which required me to fly for 1 week each month and stay at an Embassy Suites close to my office. Back in the day, I used my frequent travel to jump deep into two loyalty programs. The first one was the now defunct Virgin America Elevate and the other one was Hilton Honors.
After earning these currencies at a rapid pace, I kept diving deeper and never looked back. Miles and points have now taken me around the world, covering six continents.
The role of Valuations in the miles and points game
It’s human nature to calculate ROI on a given transaction. So, it makes sense when someone asks what these redemption values look like. However, while I think they do have value, they don’t tell you the full picture. Moreover, you shouldn’t let it be the be all and end all of your travel journey.
Mea Culpa
For the first couple of years in this space, I made the mistake of letting CPP (cent per point) or CPM (cent per mile) valuations dictate where I travel to. After two years, I realized it was the tail wagging the dog and the not the other way around.
Transactional-ism v/s Experience
As I said earlier, I get the rationale behind asking for a valuation. Valuations help people get estimates about the kind of returns they’re getting. However, they barely paint the full picture. After I shedded my penchant for valuations, I realized that I enjoyed some amazing trips even without those high value redemptions. In fact, in certain cases, I hit the sweet spot and earned amazing redemption value and a fabulous experience as well.
Here’s a short list of some of my favorite trips (in no particular order) and the estimate CPP values. Some hit the sweet spot, other didn’t. However, I valued the experience a ton more than the 0.2 or 0.4 value that I may have lost in CPP. For the purpose of this list, I’ve only listed some of my favorite hotel stay redemptions. This post would be really long if I were to start adding business class flight redemptions to the list as well!
Udaipur, India: A 17th century royal Indian palace on lake Pichola (1 cpp while redeeming Amex points through Amex FHR)
Also Read: Taj Lake Palace Udaipur Review
Queenstown, New Zealand: A week at this stunning idyllic town in southern New Zealand (0.8 cpp while redeeming Hilton points)
Bit the bullet and did my first jump at the birthplace of bungy
Waking up to this view
One Week in Phuket, in a 2 bedroom suite during Thanksgiving: (2.4 cpp while redeeming World of Hyatt points)
4 nights at Conrad Maldives, in an overwater villa equipped with a jacuzzi (redeeming Hilton free night certificates, over 2 cpp)
4 nights in Conrad Koh Samui, with our own private infinity pool (redeeming Hilton free night certificates, over 2 cpp)
3 nights at the Hilton Molino Stucky Venice (0.7 cpp while redeeming Hilton points)
The Pundit’s Mantra
I’ve never been averse to numbers. However, making a qualitative judgment on how much you enjoyed your trip doesn’t paint the complete picture. In fact, the lower CPP often erodes joy from what could’ve been a fascinating trip – full of exploration or learning.
Also, as I said before, don’t let the tail wag the dog. Don’t let a great CPP valuation come in the way of you having a truly memorable experience. Out of the countless trips that I’ve taken, not all have been fantastic in terms of CPP valuations. However, the memories those trips have left behind will stick around with me forever. In short, your miles and points are worth what you make out of them. So, go and redeem them for great value, but never forget the ‘why’ of your travel.
Do you find yourself obsessed with how much redemption value you’re getting on your miles and points? After more than a decade in the space, I’m glad I’ve found the right balance.
Do CPP valuations play a significant travel in determining where and how you travel? Tell us in the comments section.
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