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Like many other fans of SIA I have been collecting Krisflyer points through a variety of means including credit cards, flights, hotels and hire cars.
Recently I sat down and considered how much is a point really worth. From a customer perspective the redemption program is set up to offer more value for money for J rather than Y redemptions.
There has been plenty of discussions on the differences between the Business Saver and Business Standard redemptions. It is obvious that a Krisflyer point is worth more when used on Business Saver redemptions.
On a spreadsheet I completed an exercise on the valuation of SIA Krisflyer Points usingthe retail method (value to PAX).
Based on a Business Saver/First Class Saver Redemption (eg BNE - FRA on 747 or BNE - SIN on A330) I calculated that a Krisflyer point is worth between AUD $0.046 and AUD $0.052.
Based on a Business Standard redemption I calculated that a Krisflyer point is worth between AUD$0.023 and AUD$0.026.
I conducted the analysis based on return business and first class trips and the additional charges by SIA for redemptions, and the average cost of earning a point on a credit card. It was also noted that that the further the fligtht on the same trip the more the Krisflyer point was worth. That is longer trips require relatively less points in redemptions.
Wonder if anyone else has completed the exercise.
The analysis indicates in my case it was worth paying the annual charges and obtaining points on the credit card.
I do undertand there is some marekting psychology which I encourage people to "spoil" themselves with the Krisflyer points which would in many cases result in extra trips and the filling of seats.
Please give me your thoughts.
Gunners
Recently I sat down and considered how much is a point really worth. From a customer perspective the redemption program is set up to offer more value for money for J rather than Y redemptions.
There has been plenty of discussions on the differences between the Business Saver and Business Standard redemptions. It is obvious that a Krisflyer point is worth more when used on Business Saver redemptions.
On a spreadsheet I completed an exercise on the valuation of SIA Krisflyer Points usingthe retail method (value to PAX).
Based on a Business Saver/First Class Saver Redemption (eg BNE - FRA on 747 or BNE - SIN on A330) I calculated that a Krisflyer point is worth between AUD $0.046 and AUD $0.052.
Based on a Business Standard redemption I calculated that a Krisflyer point is worth between AUD$0.023 and AUD$0.026.
I conducted the analysis based on return business and first class trips and the additional charges by SIA for redemptions, and the average cost of earning a point on a credit card. It was also noted that that the further the fligtht on the same trip the more the Krisflyer point was worth. That is longer trips require relatively less points in redemptions.
Wonder if anyone else has completed the exercise.
The analysis indicates in my case it was worth paying the annual charges and obtaining points on the credit card.
I do undertand there is some marekting psychology which I encourage people to "spoil" themselves with the Krisflyer points which would in many cases result in extra trips and the filling of seats.
Please give me your thoughts.
Gunners
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