Purchase a ticket and upgrade or an outright redemption?

[sabian]

Why do some upgrade their tickets (I can understand if it was a ticket purchased by the company) and some redeem the ticket itself outright?

[CarbonMan]

Perhaps he doesn't have enough miles to redeem a full J class ticket outright?

[SMK77]

Corporate Travelers don't care about the economics. Their company is paying them Y or J and they just upgrade to J and F.

If you are purchasing the ticket, you would prefer J/F redemption over buying the ticket and upgrading.

[FlyingDobber]

I tend to get an upgrade ticket where possible as I still earn miles on the purchased ticket rather than none.

[MEL-World]

I agree. I find using them to upgrade is a more efficient use of the hard earned points.

[SQueeze]

I review case by case.

Some destinations have very high taxes/surcharges relative to the actual ticket (eg Australia where taxes are about 1/3 of a ticket). In this case, I will buy the ticket, use less miles to upgrade and along the way also earn more miles. But this will change post-1 March where the upgrade and full redemption require almost the same no of miles

Some destinations with ultra low taxes/surcharges, such as out of Brazil, best to do outright redemption.

[sabian]

Corporate Travelers don't care about the economics. Their company is paying them Y or J and they just upgrade to J and F.

(I can understand if it was a ticket purchased by the company)

Perhaps he doesn't have enough miles to redeem a full J class ticket outright?

Really? Doh! Who'd have thought?

[sabian]

I tend to get an upgrade ticket where possible as I still earn miles on the purchased ticket rather than none.

So indirectly, you are paying for the miles earned. I assume they are worth it since KF does have an official rate for buying miles.

I agree. I find using them to upgrade is a more efficient use of the hard earned points.

Post revision, is it still the case? I find that it's a much finer line after the revision.

I review case by case.

Some destinations have very high taxes/surcharges relative to the actual ticket (eg Australia where taxes are about 1/3 of a ticket). In this case, I will buy the ticket, use less miles to upgrade and along the way also earn more miles. But this will change post-1 March where the upgrade and full redemption require almost the same no of miles

Some destinations with ultra low taxes/surcharges, such as out of Brazil, best to do outright redemption.

Yep, I was looking at the new redemption rates and it does look like it doesn't make any sense to upgrade.

[SMK77]

Let's do the math. Taxes come on top for both paid and redemption tickets and can be excluded.

FRA-SIN return:

Paid ticket in "E" is SGD 1,750.
Miles earned (including elite bonus): 16,000 Krisflyer miles.
Upgrade to Business as Saver is 110,500 Krisflyer miles if done online.

Total cost: SGD 1,750 plus 94,500 Krisflyer miles.

Redemption Ticket Business Saver:

Online booking (including 15% discount): 136,000 miles.

Total cost: 136,000 Krisflyer miles.

Comparison:

SGD 1,750 or 41,500 Krisflyer miles.

Top-Up-Price (4 US-Cents per mile) for 41,500 miles: SGD 2,100.
It would be cheaper to pay and upgrade.

I value 1 Krisflyer mile at 3 SGD-Cents: SGD 1,245.
It would be cheaper to get the redemption ticket.

Depending on how easy you can get your hands on miles, the 'value' of the mile might be different.

[sabian]

Thanks SMK77

I agree with you generally.

There are so many variables that it may not always be an outright redemption that is more expensive.

I have a habit to value 1 KF mile at SG 2.94 cents (1750/59500, using Y redemption fare to LHR, excluding taxes/ surcharges to arrive at the value of 1 KF mile).

I would never value it at SQ's rate since they would never pay me anywhere near the rate they quote.

But if you are flying J to FRA, I would value the miles at SG 4.4cents ($6k/136000).

[SMK77]

But if you are flying J to FRA, I would value the miles at SG 4.4cents ($6k/136000).

If you value J to FRA at 4.4 SGD-Cents:

Full fare and upgrade:

SGD 1,750 + (0.04 x 94,500) = 5,908 SGD

Redemption:

0.04 x 136.000 = 5,440 SGD = 5,984 SGD

Pricing is almost the same...

For 6,000 SGD you can fly Thai Airways in First Class return and get full miles for First Class... Why fly SQ C?

[sabian]

If you value J to FRA at 4.4 SGD-Cents:

Full fare and upgrade:

SGD 1,750 + (0.04 x 94,500) = 5,908 SGD

Redemption:

0.04 x 136.000 = 5,440 SGD = 5,984 SGD

Pricing is almost the same...

For 6,000 SGD you can fly Thai Airways in First Class return and get full miles for First Class... Why fly SQ C?

That's the dilemma my colleague has when it comes to redeeming miles.

And when we discuss redeeming miles, we end up agreeing that Y redemption is probably a better use of miles bec once we consider the cabins in front, we end preferring to pay cash for another airline's J or F rather than using miles. (that is if we have the option to use miles or cash).

[SMK77]

That's the dilemma my colleague has when it comes to redeeming miles.

And when we discuss redeeming miles, we end up agreeing that Y redemption is probably a better use of miles bec once we consider the cabins in front, we end preferring to pay cash for another airline's J or F rather than using miles. (that is if we have the option to use miles or cash).

Redeeming miles for Economy is the worst thing you could ever do. How can you think this is the best value?!

Business can be either or.

First Class is usually very well worth it.

[sabian]

Redeeming miles for Economy is the worst thing you could ever do. How can you think this is the best value?!

Business can be either or.

First Class is usually very well worth it.

Redeem miles for economy. Sounds blasphemous.

(Caveat: if a family does travel on Y once/ twice annually for holidays.)

It's just that if a dollar (or cents in this case) is attached to a mile for each category of redemption, you end up not wanting to burn the miles for J or F and rather pay cash for J/F on another airline (like your TG example) and use Y redemptions for the family trips.

[SMK77]

Redeem miles for economy. Sounds blasphemous.

(Caveat: if a family does travel on Y once/ twice annually for holidays.)

It's just that if a dollar (or cents in this case) is attached to a mile for each category of redemption, you end up not wanting to burn the miles for J or F and rather pay cash for J/F on another airline (like your TG example) and use Y redemptions for the family trips.

I don't get that logic. The value of a mile is always the same.

A
You can buy 4 tickets for your family in whY for 60.000 miles each and pay for your two business class tickets 6.000 SGD each.

B
Or you can buy 4 tickets for your family in whY for 2.000 SGD each and redeem two business calss tickets for 120.000 miles each.

Why would I do A??? If you take First Class, the gap is even wider... Ticket Price for Y, J and F go 100%, 300%, 600%. For redemption it's 100%, 200%, 300%...