How to use airmiles effectively – An Example

Posted by
July 15, 2008
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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:

 Example #1

  1. Flight from Calgary to Vancouver costs $99 on Westjet each way during a seat sale.  Total Cost=$198.
  2. Total cost in terms of airmiles is 900 airmiles.
  3. Airmiles-to-dollar ratio = 4.54
  4. 4.54 is greater then 4 so using your airmiles is a bad idea.

 Example #2

  1. 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
  2. Total cost in terms of airmiles is 900 airmiles.
  3. Airmiles-to-dollar ratio = 1.88
  4. 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.  

Information, Westjet

Comments

I would like to know how to covert air miles points to best western gift cards

Comment by bill codlin on July 19, 2008 @ 10:15 am

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?

Comment by Cotty on July 19, 2008 @ 3:35 pm

Hi Cotty,

Thanks for all the questions I really appreciate it! Looks like you did the calculation correctly and I’d say that you could use your airmiles and it’d be worth it for that flight.

I say, yes take the $250 off the price before calculating the ratio. I say this because you’ll have to pay those costs regardless of using airmiles or not. Therefore, you should be factoring that into the costs of your flight!

Good luck and safe travels!

Comment by admin on July 22, 2008 @ 8:50 pm

I have 1500 points and my girlfriend has 200o points ( air miles ) I would like to stay at a Best western in Aldergrove B.C. Canada for 4 nights App at end of April , How can we put together her & my airmiles for what ever nights we can use them ,in the same room for 4 nights I will also pay the different in cash , but can I get the Same room . So we would like to use 2 different airmiles numbers and cash?

Thankyou

Barb coey

Comment by Barb Coey on April 11, 2011 @ 3:30 pm

hi, my dad have 9,500 airmiles he travels alot actually every month back and forth to brunei. his airline is brunei air the problem is we don’t know how to use them. we’re new at this. im wondering if u could help us how to use it. we’re from manila, philippines and we want to go to hongkong. hopefully u could help us out. uhm last years he has a thousands of airmiles too but we didn’t used it and it has expired only.

Comment by rachel on July 7, 2011 @ 8:42 am
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