Points & Miles
How I evaluate a points redemption.
A point is not worth the same thing in every program. I use cents per point as a shorthand, then compare the result with the specific currency, the cash alternative, and what I would realistically choose to pay.
How to calculate cents per point
Standard redemption value = ((comparable cash price − award taxes and fees still paid) ÷ points or miles redeemed) × 100.
With a transfer bonus: bank points transferred = award points required ÷ (1 + transfer bonus rate). Effective value per bank point = (cash value replaced ÷ actual bank points transferred) × 100.
The reality check
CPP is only one part of the decision. I also consider whether I would realistically have paid the comparison cash price, the opportunity cost of using the points now, award restrictions, and whether the redemption preserves the experience I want.
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