Milenomics NOAF Episode 79: Miles vs. Bank Points

We're back! We cut this show as the last segment of a Patreon Episode, and are releasing it here a little delayed for everyone to listen. 0:21 Main Topic: Airline Miles vs Bank Points 0:52 Set the stage: Why is this an important discussion. Every major bank has a bank point. Chase UR, Amex MR, Citi TYP, WF Rewards, BofA Rewards, US Bank….&nbsp; Most of these can be cashed out for pennies (or fractions of) OR can be used in the bank run travel portal for more than a penny.&nbsp; Finally some of these can be transferred to airlines as airline miles. These have completely different booking methods and tools, along with a varied amount of value based on the flight or hotel booked.&nbsp; Maximizing value for these miles is a key to earning back the time and money we spend to earn the miles. Example: It almost never makes sense to cash out MR at .6 cents. (news story) 5:51 Bank Point bookings Benefits: Cancel and points can just come back Need to book a refundable fare, eating away the value Open to booking across all alliances and even airlines that have no native point or alliance.&nbsp; As long as it is in the portal you can book it. Sometimes phone agents can see even more. &nbsp; 1:1 pricing for most airline tickets.&nbsp; Airline bookings are elite benefit eligible and earn miles Hotel bookings are now allowing loyalty numbers to sometimes be added for elite benefits 13:09 Airline Miles Benefits:&nbsp; Massive flexibility for most domestic carrier programs. Cancel as close in as you’d like. Great for provisional flights Value is not pegged to the dollar cost of a flight, in some cases this results in fantastic values.&nbsp; Economy fares can be incredibly valuable uses of miles if you’re interested in them for long haul flights.&nbsp; Newer tools make searching easier, but still a hurdle 19:44 Airline Mile Weaknesses Pricing is highly dynamic and the programs are each unique and have complex rules and booking channels.&nbsp; There need to be reasonably priced award seats or your miles can become worth less than a bank point.&nbsp; Orphaned miles have no benefit outside of the program they’re in.&nbsp; Phantom space. Business class fares for more than 2 people become increasingly difficult to book.&nbsp; Some dates and destinations are effectively blocked out Large learning curve.&nbsp; 24:27 Bank point Weaknesses Limited upside potential, each program caps the value somewhere between 1.25 and 2 cents per point Hotel prices can be inflated, reducing the value earned by the points The ability to book anything depends on the bank point portal, which sometimes is less robust that a native airline/hotel portal or even an OTA like booking.com The card associated with the uplift needs to remain open for the points to have uplift. This is impractical for some, and costly if annual fees cannot be eradicated.&nbsp; <p class="wp-bloc