Did I make a mistake? Paid $900 cash for my tickets.

[AlaskanTraveler]

I've been struggling with my recent decision. Taking 5 day vacation to Puerto Vallarta. I could have used AS miles 35k x 2 econ. I could have used BA miles 40k x 2 econ. AA miles 40k x2, econ. Travel time is around 11 hrs each way with about 8.5 hrs of flying time. First class was points prohibitive for me. AS 60k x 2. BA 120k x 2, AA 65k x 2. All first class options would have redeemed my points for well under 1 cent each.

I used an AS companion fare (no $99 fee) booked into an upgradeable class, then used some AS MVP guest upgrade certs that I traded very cheaply. Yes, I spent $900, but I will also receive 4500 MR points for 5x on air travel and 17,820 AS miles for the travel (I am AS MVP).

Overall paying $900 for two first class tickets to Mexico is a pretty good deal. On the other hand, I have over 2 million air miles. I am also traveling with an infant. My wife and I agree we would prefer econ with an open seat in the middle over 2 1st class seats. The open middle seat is not a guarantee, but flight loads appear to be lite right now. If I valued the 22,295 points I will receive at a low valuation of 1.25 cents each, its like we are paying $621 for the privilege of sitting in domestic 1st class with an infant on my lap for 16 hours of flying rt. Could have used exclusively points and had the possibility of an open middle seat between us.

 

[Josh F]

I'm personally points rich and cash cheap - so I often use points on "sub-par" redemptions. While I don'get 5 cpm, I get a lot more than I put into them - so that's a win for me. If you have over 2 million air miles, you might want to loosen up with your usage of them a bit IMO. However, $900 for 2 first class tickets is a pretty solid deal!

 

[Matt]

I think it's a mistake, but not a massive one. The spread is so small that it doesn't really matter.

A thing that might be worth thinking through is that miles shouldn't have a fixed value, rather they should have a variable one that is highest when near a redemption amount, and degrades when you've got 'too much'. This would reflect that there's a good chance that you won't dip into those points until so far into the future that their value will have changed. During that same time, you've removed $900 from your ecosystem, which might (depending on situation) be financed at a rate of your mortgage or student loan.