Guidance from ppl rocking multiple different point systems (and why?)

[Anonymous]

---

@K-in-Boston wrote:

  Note the repeated use of "effective cash back" because my values include the return in SkyMiles that I get from Delta on revenue flights, which includes any flights done in travel portals on the above cards.  So while Amex Travel may really only be getting me 1.54 cents per Membership Reward (more when international flight program or insider fares are at play), after calculating what I earn back from Delta for the flight not being an award flight it's really closer to 2 cents and same for other programs like US Bank and Chase where the portal has a 50% bonus.

.

---

Mmm, IMO, to use a technical term, that is a "strange" calculation, as by that definition if I pay with cash I also get some significant cashback....

[K-in-Boston]

---

@Anonymous wrote:

---

@K-in-Boston wrote:

  Note the repeated use of "effective cash back" because my values include the return in SkyMiles that I get from Delta on revenue flights, which includes any flights done in travel portals on the above cards.  So while Amex Travel may really only be getting me 1.54 cents per Membership Reward (more when international flight program or insider fares are at play), after calculating what I earn back from Delta for the flight not being an award flight it's really closer to 2 cents and same for other programs like US Bank and Chase where the portal has a 50% bonus.

.

---

Mmm, IMO, to use a technical term, that is a "strange" calculation, as by that definition if I pay with cash I also get some significant cashback....

---

That's the whole point of loyalty programs, though.  There's an incentive no matter how you pay, as long as you pay.  It's not cash back, but points back (whether airline or hotel) on revenue stays and those are payment agnostic.  For the purposes of determining my points values, I need to calculate everything to make an apples-to-apples comparison - that includes rebates, points/miles earning, and while not included here some personal determination of the value of maintaining/upgrading elite status.

Just comparing Amex Travel to redeeming MRs to SkyMiles for instance, on the face 1 MR is worth a penny but a SkyMile would be worth about 2 pennies, so it might look like I'm getting twice as much value by moving my MRs to Delta than by redeeming in Amex Travel, that's not the whole story.  Because of the rebate given for holding the Business Platinum Card and what I earn back in SkyMiles on revenue flights (excluding any additional savings from Insider Fares or International Airline Program), I'm essentially getting 2 cents of value from MRs whether they go toward Amex Travel or get converted to SkyMiles.

Since I get no elite-qualifying miles, segments, or dollars, and no miles awarded when flying on an award fare - if all things are basically equal, of course I should use the flexible points to make revenue flight bookings if I would have used those points for flights anyway.  That goes toward my elite status qualification and also puts me higher on the upgrade hierarchy than I would be on an award fare.  Continuing the status also has some significant monetary value as well; as a Platinum Medallion I can go in and pick a Comfort+ seat on any flight as soon as I've booked it, and since I would usually pay for at least C+ anyway, that alone is worth thousands of dollars annually.

[Anonymous]

Income alone wouldn't be a factor if you're still not putting the rquired spend through the card. I have a fixed amount of spend currently, meaning there are only so many things I "can" put on a CC to earn rewards. If my income were to double next month, I would still be running the same amount through my CC. Increasing my income doesn't increase my natural spend. Now it might endulge me to eat out more, and buy more stuff I don't really need such as elect. toys etc. But wre not exactly talking about and extra $3-5K going out. 

Even if I decided to go out and buy a new house, car, or boat It still wouldn't increase my CC spend because you traditinally cannot put those payments on CC's. Now if that salary increase came with required travel, then of course my spend would increase. There are more factors at play than just income. It takes having the right credit product and reward system to outweigh the AF regardless.

[Citylights18]

Mainly because all these point systems have some flaws to them and if someone can make a few extra hundred a year with another point system they will try.

A lot of people though get high tier cards for the sake of getting them instead of optimizing spend. I know a guy in the office who laments the CSR AF but he doesn't realize he can PC to a lower AF card. He also has Delta Reserve which doesn't compliment CSR. I told him the high AF was about priority pass and club access and if not using those services there is limited need for them. He doesn't fly but a few times a year.

[Anonymous]

A lot of the AF cards use benifits to offset the cost of the anual fee. Although cash back or points do add up. 

But everyone's trifecta or quadfacta or whatever todays buzz term is. It is all up to the individual and what benifits they want or need.

If you live near a Delta Hub, then a Amex set with a delta card is right for you. But maybe you travel to Denver which is a United Hub and prefer to stay at a marriot while your there or chase United and a marriot card work well for you also.

It true everyone only has so much cash to put through a point or cash back system. But it's the benifits that offset the AF.

What is a particuliar lounge access worth to you? if you have that loung in your home airpot. a lot. If you don't o worth.

If you like diamond access at a hilton get your platinum. If a particuliar benifit has no value to you. then maybe the AF isn't worth it.

It also has to do with if I person wants to worry about getting all the value from a AF card. If they don't want the hassle then just get a no NAF card with fewer points or miles back.