Comment by scarface_74
2 years ago
I’m not saying it’s a lie. 4 Amex Membership Rewards points are worth around 6% if I transfer them to Delta instead of spending cash on the same ticket.
If I transfer those same points to Flying Blue/KLM (a Netherlands airline), since they are a partner with Delta, I can buy a domestic round trip flight in the US on Delta through them where the cash price to fly into my parents small regional airport is $508.
The price in points is 17K. That makes those same 4 points worth 12% back per dollar.
This isn’t about “only the rich get value”. It’s about the well informed.
4 points per dollar is what you get back on the Amex Gold for groceries.
You could never buy points as cheaply as Amex. For all intents and purposes, credit card users are collectively buying miles in bulk
> This isn’t about “only the rich get value”. It’s about the well informed.
It’s about people who can pay off the card every month not the rich. These cars charge high interest rates which can very quickly offset any benefit unless you have the resources to never use them as debt. Ie the capacity to have a ~months worth of spending in unused credit.
> You could never buy points as cheaply as Amex. For all intents and purposes, credit card users are collectively buying miles in bulk.
Many customers get discounts on ticket prices that don’t apply when using air miles. It’s another form of price discrimination designed to maximize profits not specifically a discount for bulk purchase.
“Awards are subject to capacity controls. Awards may require higher prices depending on routing rules and restrictions. Exceptions to these rules may require additional mileage or taxes and fees. Travel to all destinations within region may not be available at lowest price. …
Award seats may be limited and not available on all Delta Connection flights.” etc https://www.delta.com/us/en/skymiles/how-to-use-miles/travel...
Amex charge cards encourage you to pay off your balance every month.
But award bookings through partners have their own hoops. But I don’t have to “fly J to Bali” - a popular meme in r/awardtravel. I look for economy flights.
The flight I was talking about to see my parents is to an airport with only three commercial flights a day inbound and two outbound. All to and from Atlanta. So of course it is over priced
> So of course it is over priced
I don’t know about the airline you mentioned, but as an example of what I am referring to Delta offers Active Military members a discount on flights that simply isn’t going to show up for you. https://www.delta.com/us/en/special-circumstances/military-t...
That’s price discrimination which has nothing to do with bulk purchases. It’s simply another leaver they can optimize so most seats are used while they also maximize what they charge for those seats.
Saying it the ticket is worth X, when that’s literally the highest price they charge anyone is misleading.
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