Now Reading
How A lot Are Factors Price? (Quarter 3 2022)

How A lot Are Factors Price? (Quarter 3 2022)

How Much Are Points Worth? (Quarter 3 2022)

Now that Quarter 3 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 contrast to the earlier quarter, which led to many valuation adjustments, principally on account of Qatar Airways becoming a member of Avios, this quarter was a bit quieter.

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

Air Miles

When you’ve paid consideration to the information currently, you’d have seen plenty of protection of the continued, gradual demise of the Air Miles loyalty program. In late June, I used to be a visitor on CBC lunch hour radio packages, providing my views on this system and the turbulence it has encountered in recent times.

Safeway and Sobeys, two main Canadian grocery shops, discontinued their relationship with Air Miles, opting to shift to Scene+ as a substitute. Staples has additionally left this system, representing one other main blow to Air Miles, which is changing into extra of a relic than a up to date participant within the Canadian loyalty panorama.

Air Miles have gotten harder to earn, and with the shares in its father or mother firm sinking, the long-term worth proposition of this program is extra questionable than ever earlier than.

Air Miles can predictably be redeemed as Money Rewards at a charge of 95 Air Miles for $10, representing a baseline worth of 10.5 cents per mile. Whereas there are occasional redemption bonuses to probably use Air Miles for additional worth, it’s definitely changing into more and more troublesome to take action.

  • Earlier valuation: 11.5 cents/mile (CAD)
  • Up to date valuation: 11 cents/mile (CAD)

Alaska Airways Mileage Plan

After formally becoming a member of the Oneworld Alliance, Alaska Airways has been busy including plenty of accomplice airways for incomes and redeeming on its Mileage Plan loyalty program.

The newest addition of Air Tahiti Nui presents travellers direct entry to an aspirational vacation spot from two North American cities. In comparison with different recently-added companions, whose redemption charges left a lot to be desired, the associated fee is way more beneficial with Air Tahiti Nui.

Whereas this new redemption alternative presents a useful new method to redeem miles for journey to Bora Bora, availability is finally pretty scarce to come back by.

It’s price acknowledging right here that the addition of Air Tahiti Nui presents an upward enhance to the worth of Alaska Mileage Plan, however we’ll maintain off on adjusting our valuation till we hear additional excellent news from this system.

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

CIBC Aventura: 1.25cpp Prolonged By to September 15

Within the second quarter, CIBC’s Aventura program placed on a particular promotion by means of permitting cardholders to make use of factors to redeem in opposition to any journey buy at double the standard charge: 1.25 cents/level as a substitute of 0.625 cents/level.

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

This promotion got here to prominence again when CIBC was providing 45,000 Aventura factors with no minimal spend and the first-year price 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 many of Quarter 3 of 2022, then, the worth of CIBC Aventura factors is briefly elevated to 1.25cpp (cents per level), and we anticipate this to return to our common valuation of 1.2cpp (which components within the baseline redemption of 1cpp in opposition to 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)

Scene+

As grocery retailer chains and different retailers are dropping their partnership with Air Miles, Scene+ is changing into a extra related participant on the Canadian incomes scene. 

Sobeys and its affiliated shops, comparable to Safeway, Thrifty Meals, and others, will roll out a partnership with Scene+ as they discontinue the connection with Air Miles.

Whereas there haven’t been any main adjustments to redemptions with Scene+, it’s price mentioning this quarter as we will anticipate to listen to extra about it within the months and years forward.

As a reminder, Scene+ factors could also be used to offset the price of journey purchases at a charge of 1 cent/level. 

  • Continued valuation: 1 cent/level (CAD)

Singapore Airways KrisFlyer

Singapore Airways has not too long ago introduced a devaluation for redemptions inside its KrisFlyer loyalty program, which is able to kick in imminently. As of July 5, 2022, redemption charges can be devalued by a median of 10–15%. 

Whereas KrisFlyer miles aren’t the best factors forex to earn, they do symbolize the most effective alternative to e book an aspirational flight with the airline, comparable to Singapore Airways A380 Suites Class.

There are another noteworthy candy spots throughout the program, too, that are all going up in value. 

  • Earlier valuation: 1.4 cents/mile (USD), 1.8 cents/mile (CAD)
  • Up to date valuation: 1.3 cents/mile (USD), 1.7 cents/mile (CAD)

Factors Valuations, Quarter 3 2022

Right here’s a abstract of our Factors Valuations for Quarter 3 of 2022. You possibly can confer with the Factors Valuations web page for a full record with extra notes.

Alaska Airways

Mileage Plan

American Airways

AAdvantage

American Categorical (Canada)

Membership Rewards

American Categorical (US)

Membership Rewards

Cathay Pacific Asia Miles

Singapore Airways

KrisFlyer

Conclusion

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

The announcement of main incomes companions with Air Miles resulted in a slight drop in worth, whereas CIBC’s Aventura program prolonged the briefly inflated redemption charges it presents, which is a boon for Canadians who earn factors in this system.

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

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



What's Your Reaction?
Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0
View Comments (0)

Leave a Reply

Your email address will not be published.

2022  © My Trip Masters, All Rights Reserved.

Scroll To Top