When figuring out CPM

Discussion in 'Mileage Runs/Travel Hacking' started by jakem4800, Jul 13, 2014.  |  Print Topic

  1. jakem4800

    jakem4800 Silver Member

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    What calculation do you use?

    The total fare
    The total fare plus taxes
    The total fare plus taxes and your elite bonus

    I'm just curious what everyone's opinion is on this, obviously I figure it out at "the total fare plus taxes and elite bonus"
     
    WilliamQ likes this.
  2. Jimgotkp
    Original Member

    Jimgotkp Gold Member

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    I calculate it off the total fare plus taxes. If there's a min. night requirement, I take that into consideration.
     
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  3. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

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    All the money I'm spending on flying divided by all the points I'll earn for the trip.

    I also account for other costs like positioning, hotels or other bits but that part of the math is a bit fuzzier in terms of what matters or not.
     
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  4. lapointdm

    lapointdm Silver Member

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    I look at total cost and the number of points used to acquire that costs. If you want to get more precise you could also factor in the points you are not gaining because you are not using cash for the airfare and therefore not earning miles. So lets say airfair costs $500 including tax and you'd earn 1000 points for that flight, or you could redeem that flight for 25,000 points. CPM $500*100 (cents/dollar)/(25,000+1,000 (you are not earning)) = 1.92 cpm. If you don't factor in the 1000 point you would have earned it'd be 2 cpm. A small but notable difference. I don't usually bother with factoring out what I am giving up partly because A. I'm lazy and B. The higher cpm helps me feel better about the redemption ;) !
     

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