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I assume that if you are a long-time reader, you have likely used points to book a flight. But do you really know when it is best to book with points versus cash? Let’s break it down together.
If you’re new to booking flights with points, the best way to figure it out is to calculate the cents-per-mile, or CPM, of a flight. Here’s the equation:
The cash value of a ticket - any taxes and fees you’d be charged if you pay with points = Your total
Then, take your total and divide it by the number of points you’d have to use for that ticket and multiply by 100.
Generally, you want to aim for at least 1.5-2 cents per mile or more.
✅ What else should you take into account?
While knowing the CPM is a really helpful starting point, not everyone’s travel budgets or travel styles are the same. Some of you might be saving up for a certain redemption or business class route while others may like to use the points as soon as they have them.
Having a strategy can be helpful. That’s why I also recommend knowing which cards in your wallet earn the most points on certain types of purchases and which airlines they transfer to.
Want more tips? Daily Passport did a great job of breaking down the points vs cash debate here.
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