Delta Air Lines announced it would launch a new seasonal service between Orlando International Airport and London Heathrow Airport (LHR), starting on October 26.
06.06.2024 - 16:15 / thepointsguy.com / John F.Kennedy
If you've ever redeemed loyalty rewards for a flight or hotel stay, you might know there are different combinations of points and miles you can use to pay for your expenses.
For flight redemptions, you'll always have to pay additional taxes and fees. These fees can be just a few extra dollars, or they can be an outrageous four-figure amount on long-haul premium-cabin redemptions on carriers such as British Airways and Virgin Atlantic.
As for hotels, you can usually redeem points for completely free stays with no out-of-pocket costs — assuming the property doesn't have resort fees and/or doesn't charge an additional fee on award redemptions. Additionally, the hotel may allow you to use fewer points and pay cash for part of your stay.
If you don't have enough points or miles for a redemption, whether for a flight or hotel, you might be able to compensate with cash. For example, British Airways allows travelers to reduce the cost of normal cash fares by paying a specified number of Avios alongside cash through their Avios Part Payment option.
With so many different payment combinations, how do you ensure you get the best value from your points and miles?
Here's my simple strategy.
First, you need to know what your points and miles are worth.
To find out, you can use our monthly valuations chart.
Second, it's time to do some math.
I use a value of 1.5 cents apiece for British Airways Avios as per TPG's valuations. When I book a flight, I'm presented with the following options for an economy flight from John F. Kennedy International Airport (JFK) to Heathrow Airport (LHR).
Either in my head or with a calculator, I multiply each Avios amount by 1.5 cents. This would mean:
Adding the taxes and fees option to each conversion above:
As you can see, when you convert your Avios to cash, the difference in the cost of the various payment options is not significant. The 13,000 Avios option is the most expensive, while the 19,000 is the cheapest.
Since I value my Avios, and there is no large difference in value between spending most Avios and least Avios options, I would opt to pay fewer Avios and more cash. If, on the other hand, you were rich in Avios and poor in cash, I'd recommend you select the "most points" option.
Although paying real money out of pocket for your flight redemption might make it seem like you're not getting a good deal, if cash fares are more than $425 on these dates, you're still saving a huge chunk of money.
Related: A review of British Airways World Traveller economy on the Airbus A380 from London to Miami
Let's look at a hotel example. Here is a redemption option for Dream South Beach in Miami, Florida, which travelers can book with World of Hyatt points.
I could redeem 17,000 points for
Delta Air Lines announced it would launch a new seasonal service between Orlando International Airport and London Heathrow Airport (LHR), starting on October 26.
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