How Much Are Points Worth? (Quarter 4 2022)

Now that Quarter 4 of 2022 has arrived, it’s as soon as once more time to revisit our Factors Valuations, which we replace on a quarterly foundation.

In the course of the earlier quarter, the most important information got here with the continued demise of Air Miles. Whereas this system remains to be slowly falling out of relevance on the Canadian loyalty scene, Scene+ is gladly taking its place.

In the meantime, adjustments are additionally afoot for 2 main loyalty packages within the coming months. Marriott Bonvoy is transitioning to dynamic pricing, and Alaska Airways Mileage Plan cryptically introduced upcoming adjustments to its award chart.

In any other case, the loyalty scene stays pretty secure this quarter.

Earlier than we delve into the valuations, I ought to remind you that the main target of those valuations lies within the goal redemption worth of every factors forex, somewhat than the acquisition value that you simply may incur (which may differ considerably relying on how you favor to earn factors).

Air France/KLM Flying Blue

Air France/KLM Flying Blue miles proceed to grow to be extra fascinating and available. Every month, this system unveils its Promo Rewards, which scale back the price of redemptions on particular routes.

In October, the price for an economic system flight between many cities in the USA and Europe dropped right down to solely 11,250 miles from the East Coast and 15,000 miles from the West Coast. 

Although flying in economic system isn’t probably the most glamorous approach to journey, it doesn’t get less expensive than that for a long-haul flight throughout the Atlantic. 

Our valuation of Flying Blue miles stays fixed this quarter, however hopefully we’ll see much more enhancements to this system that end in an upward shift within the close to future.

• Continued valuation: 1.3 cents/mile (USD), 1.6 cents/mile (CAD)

Alaska Airways Mileage Plan

After formally becoming a member of the Oneworld Alliance, Alaska Airways has been busy including quite a lot of companion airways for incomes and redeeming on its Mileage Plan loyalty program. Whereas the redemption charges with some leaves lots to be desired, the price for others, equivalent to Air Tahiti Nui, is kind of beneficial… a minimum of for now.

Not too long ago, Alaska Airways Mileage Plan fired a warning shot, signalling that adjustments to its loyalty program are coming by the top of 2022. Whereas the precise particulars of the adjustments have but to be revealed, the information got here as an ominous signal for this system’s many candy spots. 

The present award pricing stays till Alaska Airways proclaims in any other case. You should definitely lock in your redemptions with Japan Airways First Class, or if you will discover award area, Cathay Pacific First Class, earlier than the adjustments take impact.

Whereas the valuation of Alaska miles stays unchanged this quarter, this is probably not the case in Q1 of 2023 if we see a devaluation with the revised award pricing construction.

• Continued valuation: 1.8 cents/mile (USD), 2.3 cents/mile (CAD)

CIBC Aventura: 1.25cpp Prolonged Via to December 31

Within the second quarter of 2022, CIBC’s Aventura program placed on a particular promotion, permitting cardholders to make use of factors to redeem towards any journey buy at double the same old charge: 1.25 cents/level as an alternative of 0.625 cents/level.

This promotion, which was initially set to run out on June 15, after which September 15, has been prolonged to December 31, 2022.

This promotion got here to prominence again when CIBC was providing 45,000 Aventura factors with no minimal spend and the first-year payment waived on their CIBC Aventura Visa Infinite and Gold playing cards, leading to a web $563 earnings per card that you simply utilized for.

For the rest of the yr, the worth of CIBC Aventura factors is quickly elevated to 1.25cpp (cents per level).

We count on this to return to our common valuation of 1.2cpp, which components within the baseline redemption of 1cpp towards journey purchases plus the potential upside of the CIBC Aventura fixed-value redemption chart, subsequent quarter when the promotion ends. 

• Continued valuation: 1.25 cents/level (CAD)

Marriott Bonvoy

The clock is ticking for Marriott Bonvoy’s imminent transition to totally dynamic pricing in 2023. Earlier this yr, we noticed the elimination of lodge classes and a step in the direction of dynamic pricing, however the full transformation has but to happen.

We don’t but know what the long run holds for Marriott Bonvoy, nevertheless it’s very doubtless that aspirational accommodations are going to get way more costly as of subsequent quarter. You should definitely lock in any aspirational stays earlier than the brand new yr, in any other case it’s possible you’ll wind up shedding worth out of your Bonvoy factors.

All indicators are pointing in the direction of a devaluation subsequent quarter, however for now, the worth stays the identical.

• Continued valuation: 0.7 cents/level (USD), 0.9 cents/level (CAD)

Nationwide Financial institution À la carte Rewards

A brand new addition to our factors valuations this quarter comes within the type of Nationwide Financial institution À la carte Rewards. The loyalty program has very just lately grow to be extra fascinating with the newest spherical of bank card provides from Nationwide Financial institution, that are legitimate till January 13, 2023.

The Nationwide Financial institution World Elite Mastercard, which is in a league of its personal for insurance coverage protection, has a welcome supply value as much as $300 for journey booked by way of the À la carte Rewards portal.

Other than the welcome bonus, the Nationwide Financial institution World Elite Mastercard comes with a 5x multiplier for groceries and eating places, making it very simple to rack up À la carte Rewards factors.

You’ll should redeem factors by way of the net journey portal to get 1 cent per level, however if you happen to favor to ebook journey immediately with distributors, you may nonetheless redeem À la carte Rewards for a press release credit score at a decrease worth. You’ll get 0.83 cents per level if you happen to redeem fewer than 55,000 factors, and 0.91 cents per level when redeeming greater than 55,000 factors.

Having one other factors forex at your disposal can by no means damage, particularly when you should utilize them for journey bills that different loyalty packages don’t cowl.

• Beginning valuation: 1 cent/level (CAD)

Factors Valuations, Quarter 4 2022

Right here’s a abstract of our Factors Valuations for Quarter 4 of 2022. You’ll be able to discuss with the Factors Valuations web page for a full checklist with extra notes.

Air France/KLM Flying Blue
Alaska Airways Mileage Plan
American Airways AAdvantage
American Categorical (Canada) Membership Rewards
American Categorical (US) Membership Rewards
Cathay Pacific Asia Miles
Nationwide Financial institution À la carte Rewards
Singapore Airways KrisFlyer

Conclusion

The third quarter of 2022 has seen comparatively minor developments within the loyalty panorama.

CIBC’s Aventura program prolonged the quickly inflated redemption charges it provides, which is a boon for Canadians who earn factors in this system. In the meantime, there are imminent, doubtless adverse adjustments coming to Marriott Bonvoy and Alaska Airways Mileage Plan, so lock in your lodge and flight bookings earlier than it’s too late.

Keep in mind, deal with these numbers as merely a suggestion for cheap goal redemption values when deciding whether or not to redeem factors or pay money to your subsequent journey.

In the end, the worth derived from each redemption will likely be subjective to the person traveller, and our valuations are designed for example a median benchmark throughout the group to assist inform your determination as you think about your subsequent factors redemption.   

Originally published at Gold Coast News HQ