Frequent Contributor
Posts: 360
Registered: ‎10-17-2012

Discounts that banks get when they book airline ticket?

It seems that when you redeem your CC points for airline ticket, most times you can have at least a 50% bonus thant the 1 cent face value of 1 point. This happens to a lot of CC's reward program.


For example, Amazon Chase CC, normally it's 1 point for 1 cent cashback. But when redeemed for plane ticket, it's a 25K for $400 worth of roundtrip ticket, and you can pay the part more than $400 with your CCs. And you can earn frequent flyer miles.


That's a 60% bonus. 


My question is, how much did the bank really need to pay for the ticket?




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