750,000 SM worth $3,240???

Discussion in 'Delta Air Lines | SkyMiles' started by jmrich1432, Aug 10, 2011.  |  Print Topic

  1. jmrich1432
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    jmrich1432 Silver Member

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    Please correct my math if it's wrong.... Parents each have 150,000 Amex MR points. Neither has ever transferred to DL. With the current 50% bonus http://dmn.delta.com/ace_offers/junemr/ they could each transfer and end up with 225,000 SM and Silver status for $90 each. Delta is also offering a 100% transfer bonus between SM accounts and you can transfer up to 150,000 miles per person per year. https://www.delta.com/skymiles/buy_transfer/transfer_miles/transfer_miles_lto/index.jsp

    If they both transferred 150k to the other they would each end up with 300k from that transfer, plus the remaining 75,000 from the Amex transfer for a total of 375,000 SM each. Delta charges a fee of $0.01 per mile transferred plus a $30 fee so each transfer of 150,000 miles would cost $1530. The grand total for these transactions would be $3240 and together they would have 750,000.

    Worth it??
     
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  2. JohnDeere19
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    JohnDeere19 Gold Member

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    I would not stockpile skypesos especially given the recent devaluation...I'd say hold out for when they're needed, MR points are very valuable and 750k skypesos aren't, imo.
     
  3. Delta Points
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    Delta Points Silver Member

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    If you can find the seats you are talking about 7 biz class seats to Europe for under $500 each!
     
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  4. JohnDeere19
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    JohnDeere19 Gold Member

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    Just don't cancel 3 days or less before your flight!
     
  5. jmrich1432
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    jmrich1432 Silver Member

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    Haha valid points! My brother lives in Australia, and I have been pretty successful with finding availability on VAustralia, so that was where my thought process was heading.

    However, it's hard to tell how much longer he will be there. He will stay overseas, but it could be a place where award availabilty is better with a different alliance.
     
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  6. MSPeconomist
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    MSPeconomist Gold Member

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    The calculation forgets that you're losing the value of the AmEx MR points, 150K X 2 which very conservatively are worth $3000 and probably much more, especially because of their flexibility. The implicit cost of the loss of those AmEx MR points at least roughly doubles the price for those DL miles and I would argue a better estimate is that it more like triples the cost. Approximately $10,000 for 750K SkyMiles is paying more than one cent per mile which is the evaluation that some people use and it's certainly correct for domestic travel.

    If the miles would really be used for long haul international trips in BE, they it all depends on obtaining availability at close to all low award levels. You can find discount BE fares on most routes for about $5K or less while mileage requirements of over 300K per ticket are common and 500K for a BE ticket is not unheard of.
     
  7. NYBanker
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    NYBanker Gold Member

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    If you think you are pretty confident they will go to oz at least once, then transfer enough to have the required miles for the v-oz tickets. You don't have to move all their points - just enough for the trip that they're likely to take.

    Amex mr points are very valuable. The DL bonus helps...but it's safe to assume such offers will come again, IMHO.
     
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  8. NYBanker
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    NYBanker Gold Member

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    Also, any reason why they have two separate mr accounts?
     
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  9. Delta Points
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    Delta Points Silver Member

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  10. OneSweetWorld
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    OneSweetWorld Silver Member

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    I'd only do it if you need the miles for a booking now or in the immediate future. They seem to always have transfer promos for BA and stuff like that. I would hold out given how crappy Delta is.
     
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  11. kyunbit
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    kyunbit Silver Member

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    I think your math is a bit off because the maximum you can transfer in one transaction is 30K SM.
     
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  12. jmrich1432
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    jmrich1432 Silver Member

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    They got their plat cards separately. I don't know if they could combine them at this point?
    I missed this! Thanks!!

    They are planning their next trip to Oz, although they haven't purchased airfare yet. They will go on this next trip within 18 mos. There will be another family trip in 2-3 years for a wedding ;) although that could be in NZ or Malaysia....
     
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  13. NYBanker
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    NYBanker Gold Member

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    It might require closing one of the accounts, and then getting a card as a secondary card on the other account.

    The annual fee ($175?) for a secondary platinum card is less than half of the cost of the primary card. The secondary card gets all the same benefits as a primary card, except it shares the $200 airline nuisance fee credit. Secondary cards do get the $100 global entry credit, priority pass select and AA/DL/us lounge access.

    Additionally, cards 3 and 4 on the same account attract NO fee. While each family's situation with money is different, they could get extra cards for their lovely daughter (if you don't have one already) which would get you lounge access, pts service, etc....all at no fee. I got a third card for my mother - who never spends on it (except I gave her the nuisance fee credit, which I never need) - and she enjoys lounge access now for free. Of course, giving a credit card on your account to a person even in your family only works in certain circumstances. But, if your circumstances fit, it's a nice FREE benefit.
     
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  14. MSPeconomist
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    MSPeconomist Gold Member

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    Before moving miles into DL, note that SkyTeam does not fly into NZ. You would have to fly to SYD and then connect on NZ, QF, EK, etc. I'm not sure whether one of the Virgin carriers could be used, although that agreement with DL could be terminated in a few years.
     
  15. jmrich1432
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    jmrich1432 Silver Member

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    I have one, but I fly 2x/week for work. We actually were all targeted for the 100,000 MR points at different points in time so that's why we each have primary accounts. Once we're finished adding each other as AUs for the additional MR points I think my parents will close theirs. They don't travel for work like I do and they've each done the GE, and $200 credit (they'll leave it open to get another $200 credit after 1/1 and then probably close). Without the 100k MR offer the card just wouldn't have been worth it to them. They fly for vacation 3-5 times/year and my dad might travel 1-2 times/year for work, but very infrequently.

    I was under the impression they would have to transfer the MR points before closing the accounts unless they dropped down to a different card. Is this accurate??
     
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  16. jmrich1432
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    jmrich1432 Silver Member

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    Taking this into account it would cost $3,480 (since there would be an additional 8 transactions at $30 a pop)

    I don't think I would ever spend over $3,000 miles to transfer miles and move them around. I just don't think I could justify it. This whole thing started when I saw the 100% transfer bonus on Delta and started playing with numbers. That's what you get when you have an accountant with some down time!
     
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  17. travelinmike33
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    travelinmike33 Silver Member

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    Just went through this when my company changed away from AMEX as our corporate card provider. For us, the points were available up to 30 days after account closure. The points could be retained by having another AMEX MR card or had to be transferred out before the end of that 30 day window. I handled my arrangements before the account even closed, so I'm not sure if there would be any difficulties in waiting until after the closure.

    Another thing is to make sure that pending points get credited to the account if they go the route of transferring rather than keeping a lesser AMEX alive. When I called, the rep was happy to authorize the pending points immediately while I was on the phone.
     
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  18. jmrich1432
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    jmrich1432 Silver Member

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    Thanks for the tips, travelinmike! I will pass along.
     

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