What is your CPM limit for doing a MR?

Discussion in 'General Discussion | Miles/Points' started by Kit4na, Nov 5, 2013.  |  Print Topic

  1. Kit4na

    Kit4na New Member

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    Hello,

    As I live in Belgium, we don't have the opportunity to gather enough miles without ever getting on a plane. For instance my signup bonus for my premium American Express was 3000 miles..

    Anyways, I was looking on doing my first MR ever. I found a few interesting options at 4 / 5 CPM.

    Now I'm a member of the Miles & More program (Lufthansa etc) and there is an option to buy miles once a year. Now you get 20% more if you buy miles. So if I buy 14400 miles I will pay 290 euro so that comes down to 2 CPM.

    I know that doesn't count towards status, which I won't get this year anyway. So what do you consider to be your limit for doing a MR? And should I buy those miles? I heard buying miles is stupid because what it is worth can drop quickly. But doing a MR for twice the price per mile sounds even more stupid.. Okay I get the experience and all that.. but still :)

    Tatiana
     
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  2. anileze

    anileze Gold Member

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    Buying miles, typically does not get you status. It just gets you miles into your account for award tickets in the future. For, a MR anything in the 3.5-5 c/mile is considered good.
     
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  3. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

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    For just award miles I aim for 1-1.5cpm and that's overpaying but I like to fly so I deal. For status miles my target is 3cpm and I can generally hit it a few times a year in the USA.

    I don't think it is worth paying much more than that for the status if you're earning it 100% on your own spend. If you have help from work travel the numbers can shift a bit. But there are obviously other factors, too. If it is somewhere I want to visit and can spend a few hours or a day I'll pay a bit more.
     
  4. Newscience

    Newscience Gold Member

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    There are many great comments and ideas here! It may be worth considering obtaining the Lufthansa credit card for everyday use, to add to your "Miles and More" account. In the US, there is currently an offer to receive a total 50,000 miles posted to your account, with purchases of $5,000 within 90 days:
    http://www.miles-and-more.com/online/portal/mam/us/earn/credit_card/offer?nodeid=2073359900
    Of course, the secret of using credit cards to add miles to your account, is to always pay off the monthly total owed, otherwise, it's just not worth doing. Good luck!
     
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  5. Mike Reed

    Mike Reed Gold Member

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    Mileage Runs are for status-qualifying miles.

    Purchasing miles are for using for trips/awards at a better value than the price you're paying for the miles.

    You don't seem to indicate you'll fly enough for status, so I'd drop the thought of a status-chasing mileage run for now.

    As for buying miles, that's a tricky prospect - you need to have a targeted use and know how many you need... and be able to get better value than your purchase price. That requires a bit of planning and math.
     
  6. Kit4na

    Kit4na New Member

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    Just getting into the whole deal of miles :) I am pretty sure I can't get the Lufthansa creditcard over here. Got the one that's best already which is 3000 signup bonus :p
     
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  7. traveltoomuch

    traveltoomuch Silver Member

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    This was one of the clearest messages I heard at FTU last month. Indeed, there was speculation that the era of true mileage running is over.

    When we see offers to buy miles for 1.2 cents each (the USAir "transfer" offer recently) or even the 2 Euro cents offer you're seeing, it probably doesn't make sense to fly just for the miles. HOWEVER: if you want to fly anyway, it might be worthwhile to try to maximize your mile earnings. For example: I have a BOS-Dublin trip booked later this month, routed BOS-IAH-EWR-DUB. That's going to be a miserably long day, but if you make the assumption that I was going to fly to Dublin anyway, the extra miles for the silly routing are essentially free. For travel like this, where I want to do it anyway, 4-5 CPM seems pretty good.

    Keep in mind, too, that many of us have elite status, so we're getting bonus redeemable miles. The BOS-DUB RT is ~6 cents per EQM ($600, 10000ish miles), but when you factor in the 75% bonus I get for status, it's only 3.4 cents per redeemable mile. That's still a price I would not pay just for the miles, but I want to go to Ireland. :)

    Directly answering the "should I buy the miles" question: only if you have a clear short-term use for them. I would not buy them speculatively.
     
    Last edited: Nov 6, 2013
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  8. Mike Reed

    Mike Reed Gold Member

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    This is exactly the predicament I find myself in this year. After having my early Q4 travel obliterated by a personal injury, I'm going to have to do a run, likely a segment run, to maintain EXP on AA. Were EXP not useful to me I'd happily stay a mere PLT, earning the same 100% RDM bonus, but especially next year, EXP status will be useful to me. The deciding factors are twofold: 1) were I to drop to PLT (which I've already re-qualed for this year, no soft landing) I'd not regain EXP until late next year and 2) the financial outlay to retain EXP (on my own dime vs. on company travel) is low enough that being able to use the benefits all year next year is worth it.

    I'll likely be able to do this for far less than $1,000 (possibly less than $500) and since I'm already EXP this year, fly up front to places I don't necessarily care to go to (and hopefully turn around on the same plane on) but are the deals of the week... :)
     
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