Question
I'm moving some money to a private bank and they set up a conversation with their rewards manager to design a credit cards reward for me. It never ocurred to me that one could do this, but it is good business strategy (if the card they design is something I really like, I'd probably feel fondly about them and be less likely to move my money).
So, here's my question: What of the benefits of the Citibank Chairman, Amex Centurion, Amex Platinum, Merrill card, etc. would you most want? What other benefits might you like?
I currently use the Starwood Amex, an Amex Platinum that I keep because it has handled problems with car rentals in the past and my assistant does not want me to get rid of it, a Citibank AAdvantage card which I'm phasing out (I'm already at 2.5 MM miles].
Things I would like:
Priority Pass or other lounge access
Elite status on airlines other than Amex and BA
Hotel points
[I've never used my Starpoints but used Hilton and Amex MR points]
Air miles (but only if you could redeem)
[I've taken my family to Japan, Bali, Nicaragua, Calgary, Europe, etc.]
[I've also used them for relatives coming to visit from Canada]
Rental car protection
Purchase protection
Amex Platinum gives me Hert#1, Avis Wizard, National and Thrifty expedited service, though I don't know if I could just sign up for them anyway.
What else would you like? Am I not thinking expansively enough?
I have used the Platinum concierge once or twice and have been relatively unimpressed, though I had a former concierge as an assistant for a little bit and she had done some very interesting assignments that suggest someone has gotten good value from them.
Thanks for your help.
Answer
Here's what I want:
- A GOOD rewards program with airline transfers and permanent 1.5x miles/dollar (instead of occasional bonuses that may or may not happen), hotel transfers would be nice as well but not as important for me; no current non-hotel cards provide reasonable hotel transfers compared to hotel chain-cobranded cards, so I don't expect general transfers to match those cards
- A Centurion/Chairman-type concierge service
- Lounge access (Chairman with the 2 guest Priority Pass is perfect, but this might cut into the cost a bit; a better idea might be to have the basic card just have a regular full Priority Pass and be able to add a "2 guests" feature for $100 - $150/yr or something and/or just have discounted guests at $10/visit or the like)
- Full CDW/etc on rental cars as one expects, and covering most of the world (as in the Chairman Card, vs Amex with its exceptions)
- A really good website (think Amex, without all the errors if you try to use any of the advanced features :) Other than the constant error messages I love the Amex website)
- A SINGLE CSR contact that can take care of most anything (maybe the rewards program could be administered separately, that'd be fine.) I hate being shuffled around between 3 or 4 different people with Amex; Chairman CSRs are better about this, but as some have commented occasionally the CSR has to research something and call you back, though I have not experienced this myself
- Mid-tier elite status with at least 2 of the major hotel chains (Preferably SPG and Hilton for me)
- Mid-tier elite status on one airline from a choice of 2 or 3, from different alliances
- A companion ticket benefit like the Chairman Card: unlimited, and it only works 10 - 20% of the time, but when it does work it pays for itself a bit (should be easier to use, though; I haven't used this myself but apparently it's a pain to do. An online search facility for these types of tickets would make it worthwhile)
- Additional benefits at spending thresholds, things like 2 for 1 hotel nights at upscale properties, additional hotel and/or airline status, etc
I would pay around $500 for the above. Perhaps $800 if it included the airline status, and I would be willing to commit to minimum spending requirements to get that benefit.
Basically, the Chairman Card's BENEFITS are great for me now but I feel that I get better rewards from Amex. But even the Amex rewards are hit or miss (especially at the moment, with both MR and DL bonuses missing), so I'd like something more consistent. I get status from traveling anyways, so that's not a deal-breaker if it's going to drive up the cost.
What I use right now (fall through to next card if it doesn't match the criteria):
- Citi Chairman for Concierge and lounge access
- Citi Chairman if I'm buying airline tickets and need more flight points to match my spend points
- Amex SPG for SPG spending now that they've finally implemented 2x points for spend at SPG properties
- Amex MR (Gold Rewards Plus) if there is an MR double bonus
- Amex MR if it's with an Amex travel partner as I get 2x MR from those in my first year of membership, this will go down the chain a bit after a year when it goes down to 1.5x (annoying that this only applies to the GRP card)
- Amex DL SkyMiles if there is a DL double bonus
- Amex DL SkyMiles if it's for a double everyday spend-type thing since that will no longer apply to MR cards
- Amex SPG if none of the above is in effect
- Citi Chairman if Amex is not accepted, unless I'm outside the US and it's a smaller purchase as Amex forex is 2% whereas Citi is 3%, and I can justify the 2% for Amex rewards but not for Citi rewards
- Cash if the last condition happens to be met outside the US
Yeah, it's complicated to try to max out your point earning. I would love one card that simply took care of everything. Of course, a lot of this is because if, say, Amex had one card that took care of all of the above at the price-point I mentioned, it might have too many takers. They depend on people just using a single card and not caring about what promos are in effect. So perhaps the fee would have to be even higher for all of what I want. :)
(And I'm in the category of many people who seem prevalent on FlyerTalk: don't think twice about paying $200 for a nice dinner, PISSED OFF and willing to spend hours disputing a misplaced $2 finance charge on my credit card. Spend hours saving a few dollars on airline tickets or hotel rooms. Matter of principle, of course.)
Answer
The best rewards are those which are worth much more to you than the cost to the provider. Travel service providers, be they airlines, hotels, railroads, car rentals, airport lounges, can offer attractive rewards because they use otherwise unsold perishable capacity, that is valuable to the consumer but adds little marginal cost for the provider. I would use this as a starting point for the discussion. What can this bank obtain for you at lower cost than you could obtain it yourself? In other words, there's no benefit redeeming $400 worth of points for a $400 Priority Pass membership, but do they have a relationship which allows them to buy it for $120?
Answer
I'm moving some money to a private bank and they set up a conversation with their rewards manager to design a credit cards reward for me. It never ocurred to me that one could do this, but it is good business strategy (if the card they design is something I really like, I'd probably feel fondly about them and be less likely to move my money).
So, here's my question: What of the benefits of the Citibank Chairman, Amex Centurion, Amex Platinum, Merrill card, etc. would you most want? What other benefits might you like?
I currently use the Starwood Amex, an Amex Platinum that I keep because it has handled problems with car rentals in the past and my assistant does not want me to get rid of it, a Citibank AAdvantage card which I'm phasing out (I'm already at 2.5 MM miles].
Things I would like:
Priority Pass or other lounge access
Elite status on airlines other than Amex and BA
Hotel points
[I've never used my Starpoints but used Hilton and Amex MR points]
Air miles (but only if you could redeem)
[I've taken my family to Japan, Bali, Nicaragua, Calgary, Europe, etc.]
[I've also used them for relatives coming to visit from Canada]
Rental car protection
Purchase protection
Amex Platinum gives me Hert#1, Avis Wizard, National and Thrifty expedited service, though I don't know if I could just sign up for them anyway.
What else would you like? Am I not thinking expansively enough?
I have used the Platinum concierge once or twice and have been relatively unimpressed, though I had a former concierge as an assistant for a little bit and she had done some very interesting assignments that suggest someone has gotten good value from them.
Thanks for your help.
- High-end concierge service like Chairman
- Primary collision coverage like Diners
- Comprehensive travel insurance benefits like Chairman
- One phone number to call like Chairman
- Ability to transfer points to airlines and hotels like AMEX
- Priority Pass membership like Chairman, plus PP number imprinted on the credit card)
- Mid-tier status in SPG, Hilton, or Marriott like AMEX or Chairman, plus the ability to choose the membership
- Event access like AMEX
- Roadside assistance like AMEX
- Rewards program with >1.5 points per dollar (with 1-1 airline exchange) OR automatic month-end cash back at >1.5% OR online purchases from a few retailers
- Good website like AMEX or Diners, plus a mobile version
- Fee-based additional cards with full benefits, separate billing, online access, and controllable credit limits
- Non-fee based additional cards with limited benefits, separate billing, online access, and controllable credit limits
- Exclusive restaurant and club access (via phone and online)
- Airport limo service (via phone and online)
- Automatic auto rental discounts (no codes)
- A useful companion ticket service
- Optional deferred debit
Answer
- High-end concierge service like Chairman
- Primary collision coverage like Diners
- Comprehensive travel insurance benefits like Chairman
- One phone number to call like Chairman
- Ability to transfer points to airlines and hotels like AMEX
- Priority Pass membership like Chairman, plus PP number imprinted on the credit card)
- Mid-tier status in SPG, Hilton, or Marriott like AMEX or Chairman, plus the ability to choose the membership
- Event access like AMEX
- Roadside assistance like AMEX
- Rewards program with >1.5 points per dollar (with 1-1 airline exchange) OR automatic month-end cash back at >1.5% OR online purchases from a few retailers
- Good website like AMEX or Diners, plus a mobile version
- Fee-based additional cards with full benefits, separate billing, online access, and controllable credit limits
- Non-fee based additional cards with limited benefits, separate billing, online access, and controllable credit limits
- Exclusive restaurant and club access (via phone and online)
- Airport limo service (via phone and online)
- Automatic auto rental discounts (no codes)
- A useful companion ticket service
- Optional deferred debit
Thanks awake and karthik. Both good lists.
awake, I have a few questions for you.
Full CDW sounds really good.
Do you use event access?
Do you use and concierge services? I usually have a good assistant who does a lot of personal stuff for me.
Why airport limo service? Do you mean a discount with one or one around the world?
Companion tickets and auto rental discounts sound good.
What does optional deferred debit mean?
Answer
- Primary collision coverage like Diners
- Mid-tier status in SPG, Hilton, or Marriott like AMEX or Chairman, plus the ability to choose the membership
- Event access like AMEX
- Fee-based additional cards with full benefits, separate billing, online access, and controllable credit limits
- Non-fee based additional cards with limited benefits, separate billing, online access, and controllable credit limits
- Exclusive restaurant and club access (via phone and online)
I see we have somewhat similar lists, which tells me that folks who know their CC products know what's important!
Primary coverage: Good point, and very important. If I ever had an accident, if the coverage was primary the cost of the card would more than pay for itself. I rarely rent cars so I've not bothered getting a Diners Club for that benefit, but I would certainly welcome it.
Mid-tier hotel status: You can purchase SPG Preferred Plus with 4PM checkout and Gold-level upgrades (with an included SPG50 50%-off-rack-rate certificate each year) for all of $30/yr with the SPG Amex! (First year fee free of course.) With the initial bonus points included, it more than pays for itself. So I'd opt for the Hilton status since Gold actually means quite a bit there in my experience. :) (I'm probably going to drop down from SPG Gold to Preferred Plus next year myself, but especially with the SPG Amex giving 2 points/dollar I'm not too concerned about that. Sadly, if I'd gotten the double stay/night promo I'd have shifted enough nights to Starwood to make Platinum... Oh well.)
Event access: Definitely a good thing. I won't go to 99% of the events. But they're there, and chances are that they don't cost the card issuer a cent (if not making money for them!) So no point in not offering them.
I really like your idea of having the choice of paid or fee-free cards with differing benefits between them.
As far as restaurant and club access goes, I'm not sure that anyone other than Amex can pull that off by weight of their name in the US. Any other cards trying will be limited to a very small number of locations in major US cities, and I'm certainly not going to pick which restaurants and clubs I'm going to based on who my card issuer has limited relationships with.
Answer
I classify much of what appears in the lists generated in this thread to be benefits rather than rewards, and will be interested to hear if the bank has any flexibility to customize these features for you. When the bank says rewards I understand they mean a rebate based on charge volume in the form of cash, points, miles, discounts, etc.
Unless your private bank is owned by a large card issuer I expect you will find that their credit card operation is outsourced to someone like ...
http://www.elanfinancialservices.com/efs/consumers/index.jsp
...who issues cards for Northern Trust.
In any event, I would request these features which are certainly within their control:
1. No foreign exchange or transaction fees.
2. No ATM or cash advance fees or interest charges if you need to use the card to withdraw currency, regardless of network. This one may take some persuasion because you are, in effect, asking for the right to give yourself an interest-free loan, but it will be a good opportunity to establish mutual trust. Naturally, you would only use the card to withdraw currency in an emergency because you want to use the card to earn rewards.
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deleted as I messed up formatting
Answer
mia, thanks for the good advice and for the smart advice about looking for things they can do more cheaply than I can. A few questions:
***I classify much of what appears in the lists generated in this thread to be benefits rather than rewards, and will be interested to hear if the bank has any flexibility to customize these features for you. When the bank says rewards I understand they mean a rebate based on charge volume in the form of cash, points, miles, discounts, etc.***
I'm not sure but I'll find out. I suspect buying a Priority Pass is an easy thing for them to do and would be cheaper for them to do than for me.
I have lots of points 600K AA, 200K MR, 200K Starpoints, 100K BA, etc. What rewards would be valuable to you?
I'm not sure if they issue their own cards or work through the company you mentioned, but likely they outsource much of the back office anyway.
***In any event, I would request these features which are certainly within their control:
1. No foreign exchange or transaction fees.
2. No ATM or cash advance fees or interest charges if you need to use the card to withdraw currency, regardless of network. This one may take some persuasion because you are, in effect, asking for the right to give yourself an interest-free loan, but it will be a good opportunity to establish mutual trust. Naturally, you would only use the card to withdraw currency in an emergency because you want to use the card to earn rewards.***
Good suggestions. They say that they rebate ATM fees. I have always maintained a separate bank account at a local bank and put a few thousand in and use it only as my ATM account. I never want it to be easy to withdraw from an account that could have $50K to $200K in it. So I will have them transfer money to the ATM account whenever it is low.
I asked them about the foreign exchange fees and they were going to look into it.
Is there a foreign transaction fee different from a foreign exchange fee? Or is it just another label for the same thing? [It has always seemed a bit odd to pay a global bank or financial services company like Citi or Amex for the inconvenience of changing currency, but hey, if they market will bear it, I'll find another card for foreign transactions.]
Answer
Thanks awake and karthik. Both good lists.
awake, I have a few questions for you.
Full CDW sounds really good.
Do you use event access?
Do you use and concierge services? I usually have a good assistant who does a lot of personal stuff for me.
Why airport limo service? Do you mean a discount with one or one around the world?
Companion tickets and auto rental discounts sound good.
What does optional deferred debit mean?
1. Event Access - I have used AMEX event access to get into some tough places: O at the Bellagio, The Lion King, Rent, etc. When you are on a trip and can't plan ahead for seats (i.e. months/weeks ahead), this is a must.
2. Concierge Services - I absolutely use them. In my line of work, I do not have a personal assistant. However, I travel 100%. Frequently, I do things for my girlfriend and elderly parents while I am travelling. Chairman Concierge is a big help.
3. I book my own travel. When I am in a big city, I hate renting a car. This just means...call the concierge...get a limo, ideally at a discount in large markets. There is nothing worse than arriving at midnight and searching for a cab in a mid-sized airport.
4. Deferred debit - Option to have the entire balance automatically deducted from a bank account each month.
Answer
I have used the Platinum concierge once or twice and have been relatively unimpressed, though I had a former concierge as an assistant for a little bit and she had done some very interesting assignments that suggest someone has gotten good value from them.
I know this is a bit of a digression, but I'm wondering if you could share any of these things. I feel I don't use the concierge very often, except for occasionally finding a product or getting a restaurant reservation. I'm wondering when else they might come in handy...
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I know this is a bit of a digression, but I'm wondering if you could share any of these things. I feel I don't use the concierge very often, except for occasionally finding a product or getting a restaurant reservation. I'm wondering when else they might come in handy...
Let me see if I can dust off the cobwebs. The only one I can remember involved someone who wanted to play a joke on his friend who was interviewing job candidates for a position. She had to find the "job candidate from hell", and hired an actor in another city who performed admirably in that role. It was apparently so good that the interviewer hired the actor again to play the same joke on someone else. Sorry I can't remember the others.
Interestingly, the ex-concierge wasn't especially resourceful while she was working for me, which is in part why she isn't any longer.
My current assistant used to work in a tres chic hotel in NY that was a destination for lots of celebrities. She unpacked and packed for one petulant starlet type (Paris Hilton? or someone similar) who threw very expensive things all over the room. But, she did this task so well that the starlet always stayed at the hotel and always asked for her for this same task.
My only recent use of the Amex concierge was to find a photography studio to get a portrait taken the day I arrived in the city. I tend to have my assistant do all kinds of stuff and if I didn't have one, maybe I'd use the concierge more. But, my assistants have over the years had to find out kids' school vacations, plan vacations, buy flowers for my wife (lots), arrange doctors' appointments, assemble and copy private school applications, suggest people I ought to buy presents for and then buy them, handle Christmas gifts for various folks, pick up a child in an emergency, track me down on the ski slopes in Western Canada to get me urgent (bad) news, pay my bills and call to correct them, notice that we were being overcharged for water, etc. as well as graciously and efficiently take care of the needs of senior executives and high-ranking government folks when they call (and when their assistants call), know when she needs to get me versus when she can handle things herself, schedule complex meetings, find a Nepalese guide to take some Nepalese visitors on a tour of Harvard Square, arrange on short notice a bus and driver and guide for a fall walk around Walden Pond for some clients, ... . Not sure the concierge could do most of those things, but then my assistant is a lot more expensive than a Centurion card.
Sorry if I went on too long.
Answer
Met with the bank. No real customization. Just two levels (Platinum-like and Centurion-like). The good thing was that in both levels, you got 1.5 points per dollar and a 50% bonus for dollars spent on travel (meaning 2.25 points per dollar spent on travel). Then, you could use the points as follows: 30,000 points would buy a cash voucher to be used on an airline worth $500. [This is not funny money, it is the equivalent of a check]. So, if 2/3 of your purchases were for travel, you would receive 2 points per dollar spent. So, $15,000 of purchasing would buy you 30K points or $500. This is 3.33%, which is a lot better than the 1% that you get on many cash back cards. Am I right in thinking this is a good deal?
The cards seem to try to match Platinum and Centurion but fall short, especially for Centurion. Platinum-equivalent provides the $99 version of Priority Pass ($24 per purchase) and Centurion-equivalent offers the $400 version. No hotel or car rental deals. Useless luxury travel arrangements discounts (your own way to call Virtuoso for luxury travel -- I bet they answer the phone even without this particular credit card).
But, they rebate ATM fees and charge no foreign exchange or transaction fees.
Unfortunately, these favorable terms come with a deferred debit card. My assistant is wary of using a debit card as we don't keep big bundles of cash in the relevant account.
Answer
<<50% bonus for dollars spent on travel >>
<<cash voucher to be used on an airline worth $500>>
Are either of these features tied to specific travel service providers?
Is the instrument actually a debit card, or is it a credit card which is automatically paid by direct debit?
Annual fees?
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<<50% bonus for dollars spent on travel >>
<<cash voucher to be used on an airline worth $500>>
Are either of these features tied to specific travel service providers?
Is the instrument actually a debit card, or is it a credit card which is automatically paid by direct debit?
Annual fees?
I am pretty sure that neither of those two features is tied to a specific travel service provider.
There is a domestic companion ticket benefit that is tied to LVI (Lifestyle Vactions Inc. or something like that). I couldn't tell what that was about. There was also an international companion ticket benefit that worked only with BA. I've found that the fare needed for Platinum Amex companion fares was typically more than double the business class fares available and have never used the companion ticket feature. They told me theirs was the same, though they are looking at improving it.
I believe the instrument is a debit card. They also offer a Visa credit card, which offers the vouchers at 30K points yields $500, but you get one point for $1 spend rather than the 1.5 to 2.25 points per $1 spend.
The annual fees are something like $350 for the Platinum-like level and $1500 for the Centurion-like level. I certainly couldn't see enough benefit in the Centurion level card. I am not sure there is any great benefit to switching to the Platinum-like card from the Amex Platinum.
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Is it debit or deffered debit? If its deferred ebit, the money only needs to be there once a month when they pull the payment out and for whatever cash you pull out. (Assuming it works the same way the deferred debit Fidelity Amex Gold/Plat does - cash is instantally debited, purchases are debited once a month).
Still doesn't sound like it offers anything great, I think I'd rather have chairman. If I was keeping a lot of money there, I'd expect a fee waiver from them (Citi does this for any card except for Chairman even if you are a "lowely" non-Private Bank CitiGold customer).
Is this a private bank division of a big national bank or a smaller private-only bank?
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Thank you for the clarifications. The program sounds competitive, but not extraordinary.
- $0.033 is the same value I assign to Starpoints, but 3.3% cash would be more flexible.
- The BA companion ticket program is readily available elsewhere, including the Merrill+ Visa with no annual fee. This program is unlikely to save you money versus BA's "I" class fare, but it may be useful when you are not able to meet the restrictions of those fares, in particular the advance purchase requirement.
- It's odd that the rewards program is better with the debit card than with the credit card because, if I understand correctly, the merchant fees are sometimes lower for a debit card.
dennis
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Thank you for the clarifications. The program sounds competitive, but not extraordinary.
- $0.033 is the same value I assign to Starpoints, but 3.3% cash would be more flexible.
- The BA companion ticket program is readily available elsewhere, including the Merrill+ Visa with no annual fee. This program is unlikely to save you money versus BA's "I" class fare, but it may be useful when you are not able to meet the restrictions of those fares, in particular the advance purchase requirement.
- It's odd that the rewards program is better with the debit card than with the credit card because, if I understand correctly, the merchant fees are sometimes lower for a debit card.
dennis
What is the bank's name?
The orginal post says that the card is a deferred debit card which of course means that it is a credit card that automatically deducts purchases from related account once per month.
Deferred debit cards sometimes have good benefits which can be better in some ways than the banks regular credit cards, e.g. Merrill Lynch Signature Visa and Fidelity American Express Gold/Platinum.
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deferred debit card which of course means that it is a credit card that automatically deducts purchases from related account once per month.
I believe not. A "deferred debit card" is truly a debit card with no line of credit, but the cash is not withdrawn until the end of the billing cycle. See below the FAQ from the Merrill Lynch Signature Rewards card which explains that you cannot charge more than the deposit account value (plus margin account) and that if the charge transactions exceed $100,000 the full amount is immediately withdrawn.
It is also possible to have a charge card or a credit card with a "deferred debit feature" which means there is a line of credit but the bill is paid automatically by direct debit from the associated account.
Do you have to be a Merrill Lynch client to apply for the Signature Rewards card?
Yes. Because Signature Rewards is a deferred debit Visa® card, and debits your monthly purchases from a Merrill Lynch Beyond Banking® or Cash Management Account® (CMA), it can only be offered to Merrill Lynch clients who maintain these accounts
Is there a spending limit on the Signature Rewards card?
There is no pre-set spending limit on the Signature Rewards card. Spending is based on the “purchasing power” in your CMA or Beyond Banking account. In general, “purchasing power” is the total of your cash, money account balances and available margin (if applicable).
When are charges deducted from my Merrill Lynch account?
Charges are debited the Wednesday before the last Friday of each month. The entire amount of the charges posted will be debited immediately if the sum of your Visa card purchases exceed $100,000 during any monthly cycle.
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Thanks, BrianBSL, awake and mia.
It is definitely a deferred debit card, in which purchases are drawn from the account once a month, as Brian BSL explained. It is an Amex product (probably like the Fidelity Amex). The credit card they offer is Visa. I think both are included for the same annual fee.
The annual fees are around $350 for the Platinum-level card and $1500 for the Centurion-level card. They will be getting sizeable fees from my money so they can probably afford to waive the fees, if I thought the product was worth having.
mia, how do you get $0.033 per point for Starpoints? I've been racking these up but so far have never used any.
Brian, the bank is UBS (formerly Union Bank of Switzerland). UBS is a pretty big Swiss financial institution that focuses on private banking, asset management and investment banking (over they years, they have bought Paine Webber, Swiss Bank Corporation that had already bought SG Warburg and O'Connor, etc.). I don't think they do retail banking (maybe in Switzerland) but focus in private banking in Europe on preserving the wealth of families that have had wealth for generations and in the US on entrepreneurs (I think).
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<< how do you get $0.033 per point for Starpoints? >>
The calculation is based on the cost I would otherwise pay for a transatlantic roundtrip. I divide the typical Virigin Atlantic "Z" Upper Class MIA-LHR fare ($ 3,500) by the number of miles redeemed (100,000) plus the miles that would have been earned on a paid ticket (30,000, including base miles, class of service bonus, elite bonus, charge card base miles, website booking bonus).
$3,500 / 130,000 = $0.027 per Virgin Flying Club mile. I value Starpoints at $0.033 because of the 25% SPG transfer bonus.
Another way to approach it is that American Express Membership Rewards points can be purchased for $25 per thousand, $2,500 for 100,000. 80,000 Starpoints will buy the same award. $2,500 / 80,000 = $0.031 per Starpoint
dennis
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Thanks, dennis. So, it is clear that the UBS deal is dominated by a combination of Starwood Amex and Platinum Amex or Starwood Amex and Citibank Chairman. That is very helpful.
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Depends on how you redeem the Starpoints. If, for example, you would not actually pay $3,500 for a transatlantic flight and would fly instead on AA/CO/DL/US who typically offer restricted business class for about $2,500 the valuation drops to the $0.025 range. In particular, if you can conveniently fly to London from JFK or IAD the fares offered by EOS and MaxJet would change the calculation dramatically.
Also depends on how Starwood manages their program. I would not be surprised to see the 25% transfer bonus restricted, reduced or eliminated because it would be an easy way to reduce costs without redesigning the basic program.