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Discounts that banks get when they book airline ticket?

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w20031424
Frequent Contributor

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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