How to use airmiles effectively - An Example
In my last two posts I've explained how I go about using my airmiles. You can read them here and here.
At the end of the post someone Cotty mentioned that an example would be a good idea. I totally agree and rather then simply add to that other post (and it get lost) here is an updated version.
To recap:
- Determine when & where you're flying
- Search around at Westjet, AirCanada, Expedia and Travelocity.ca for the best prices on your flight.
- Determine number of airmiles to fly
- If the cost per airmiles is less then or around $4 - 5 then it's worth flying. Note that I've lowered this number from the previous $7 because after doing many calculations it seems that $7 was too high and is more relevant for 'items' rather then flights.Â
 Example #1
- Flight from Calgary to Vancouver costs $99 on Westjet each way during a seat sale. Total Cost=$198.
- Total cost in terms of airmiles is 900 airmiles.
- Airmiles-to-dollar ratio = 4.54
- 4.54 is greater then 4 so using your airmiles is a bad idea.
 Example #2
- Flight from Calgary to Vancouver costs $239 on Westjet each way during a seat sale (not a great seat sale mind you). Total Cost=$478
- Total cost in terms of airmiles is 900 airmiles.
- Airmiles-to-dollar ratio = 1.88
- 1.88 is less then $5 so use your airmiles!
Therefore, I'd say during a seat sale that using your airmiles is a bad idea.  This is of course assuming that you can get the same flights using your airmiles. This is often not the case and therefore you'd have to recalculate the airmiles.  I hope this makes a little more sense. If you have any questions feel free to ask in the comments section.
Note: The taxes and fuel surcharge are not added into the equation because you have to pay these regardless if you're using your airmiles or not. Â
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Comments
Hi, it’s me again. Thanks for the example. I have another question. Where do you factor in all the charges that you have to pay on top of your airmiles? We are using airmiles to fly to Toronto in Dec. It is 1400 miles return + $250 including insurance. Should I just take this $250 off the total cost before calculating my ratio. Eg. $680 return fees incl minus the $250 = $430. So 1400 miles / 430 = 3.25 which is less than 5 so using the miles is good. Right?
I would like to know how to covert air miles points to best western gift cards