Long haul business class to Asia gives you the most value for your points, with Europe close behind, because the cash fares are high and the seats are lie flat. Short trips inside North America are usually the worst use of points, and the sun destinations are weak too, because the cash fare is low for the points you spend. To check any trip yourself, divide the cash you save by the points you spend.
How do I work out the value of a points booking?
Use one simple formula. It tells you how many cents each point is worth on that trip.
Cents per point = (cash fare minus the taxes and fees you pay on the award) divided by the points needed, times 100
You subtract the taxes because you pay them either way. They are not part of what your points saved you.
Here is how to run it:
- Find the cash price for the exact business class seat, same flight, same date.
- Find the points price for that same seat, plus the taxes and fees on the award.
- Put both into the formula.
Now compare the answer to your floor. Your floor is what your card pays per point if you take cash back or a statement credit. Check that number on your card issuer's own page. If a trip comes in well above your floor, it is a good use of points. If it comes in near or below it, take the cash value instead and pay for the flight.
Which region gives the most value for my points?
Asia usually wins, and Europe is a strong second. Flights inside North America usually come last.
The table below uses round example numbers for a round trip business class seat from a large Canadian or US hub. They are not live prices. They show how the math plays out, because the pattern holds even as prices move.
| Region | Cash fare | Points needed | Award taxes | Cents per point |
|---|---|---|---|---|
| Asia | $8,000 | 180,000 | $200 | 4.3 |
| Europe | $5,000 | 140,000 | $300 | 3.4 |
| Sun destinations | $1,500 | 70,000 | $200 | 1.9 |
| North America | $900 | 50,000 | $50 | 1.7 |
Work through Asia to see it: $8,000 minus $200 is $7,800. Divide that by 180,000 points and you get 0.043. Times 100 is 4.3 cents per point.
Asia wins because cash fares for long flights across the Pacific run very high, while the points price climbs more slowly. You also get the most for your money in comfort: a lie flat bed, often a suite with a door, for a flight of 12 hours or more.
Europe wins for a similar reason. The overnight flight is where a flat bed matters most, because you land and go straight to work.
Why are the sun destinations and short trips a weak use of points?
The cash fare is too low for the points you spend. That drags down your cents per point.
There are three reasons this happens:
- The seat is smaller. Most flights to Mexico, the Caribbean and inside North America use narrow body planes. Business class there is often a wide recliner, not a bed.
- The flight is short. A four hour flight in a recliner is nice. It is not worth the same as a night in a flat bed.
- The points price has a floor. Award charts rarely drop as low as cheap cash fares do, so you pay a lot of points for a seat that sells for little cash.
In the table, a North America trip worth $900 cost 50,000 points. Those same 50,000 points could cover a big part of a flight to Europe, where each point works twice as hard.
The sun has one catch. In peak winter weeks and school holidays, cash fares can jump. Run the formula on those dates, because a sun trip can sometimes clear your floor.
Does Aeroplan or Flying Blue change the answer?
The pattern stays the same, but each programme prices awards in its own way. So run the formula in both before you transfer any points.
Aeroplan, the Air Canada programme, sets its award prices by distance, with a range for each zone. It also lets you book Star Alliance partners such as Lufthansa, Swiss, ANA and EVA Air. On many routes to Europe and Asia, that gives you plenty of seats to choose from. Aeroplan can add a carrier surcharge on some partner flights, so always look at the full taxes before you book.
Air France KLM Flying Blue is a SkyTeam programme and a transfer partner of the big card programmes, including American Express and Chase Ultimate Rewards. Its prices move with demand, and it often adds carrier surcharges on Air France and KLM flights. That higher tax cuts your cents per point, which is why the formula subtracts it.
The lesson for both: the same seat can cost very different points and taxes in two programmes. Price it in each, run the numbers, and only then move your points. Transfers to airline programmes usually cannot be reversed.
When does a weak redemption still make sense?
When you would never pay cash for that seat, and the points would otherwise sit unused.
Cents per point is a guide, not a rule. If you have a family trip to the sun coming up and no long haul trip in sight, using points there still saves you real money. Just know what you give up. Those same points might buy a flat bed to Tokyo next year at twice the value.
A simple way to decide:
- Above your floor and a trip you want: book it with points.
- Near your floor: pay cash and keep your points for a long haul trip.
- A trip you would not take for cash: fine to use points, as long as you meant to go anyway.
The best use of points is a long flight to a place you already want to see, in a seat you would never buy with cash.
If you run a business, your monthly spending already earns points that can cover trips like these. You can see what your spending buys and find out how many business class trips it adds up to.