What’s in Dia’s wallet:  What are miles and points worth, anyway?

Here’s what I want you to know: Miles and points are worth what they are worth to you. No more, no less. Experts can run dummy searches till the cows come home in order to assign a typical value to a specific credit card rewards currency, but if you are sitting on points that you can’t spend, they have a value of zero.  

On the flip side, some rewards currencies may be undervalued by the peanut gallery because they are only good for a specific purpose, but if that purpose is perfect for you, you’re going to see tremendous value in that program. I’ll share some examples from my own points accounts to give you an idea what I mean.  

Miles and points that are over-valued (to me)  

American Express Membership Rewards 

This may be a controversial take, as Amex Membership Rewards Points are one of the most popular flexible currencies—meaning you can transfer rewards to airline and hotel partners—on the travel scene. Let me clarify that I do not mean Membership Rewards have no value. They’re versatile and valuable points, but I just don’t think they have as much value as most estimates say they do.  

Do a quick search on “what are Membership Rewards worth?” (in a new window, please!) and you’ll find values from 2 cents all the way up to almost 3 cents per point. I find those numbers optimistic bordering on disingenuous because they assume the absolute highest cash value scenario—transfering to a partner to book a one-way first class plane ticket.  

At least American Express itself is a bit more transparent. The issuer says points are worth between 0.6 cents each (statement credit) and 1 cent per point (booking on Amex Travel). I think those values are low when you consider transfer partners, but the fact that Membership Rewards, unlike other rewards currencies, are not worth a penny each toward statement credits in any capacity is a real ding on the program.  

As for me, I find value in Membership Rewards transfer partners such as Aeroplan. However, Aeroplan is also a transfer partner of many other programs, so I don’t need Amex points to maximize its program. For this reason, I attach a value of about 1.5 cents per point to my own Membership Rewards collection.  

Delta SkyMiles 

I have a love/hate relationship with Delta SkyMiles, but in 2024 the scale has definitely swung away from affection. In 2021, I went a bit hog wild with Delta cards because they were offering large welcome bonuses so both my husband (also known as Player 2 or P2 in the travel rewards circle’s lingo) and I each got a Delta SkyMiles® Platinum American Express Card, then a few months later I got the Delta SkyMiles® Gold American Express Card as well.  

Before I knew it, we had close to half a million SkyMiles stockpiled, between the card welcome bonuses and our regular spending.  

At first, they came in handy. In 2022, we took our two kids to France and at 30,000 SkyMiles in coach each way knocked out about half of our balances. But since then I’ve had trouble getting even a penny a mile value out of them compared to other currencies. In last month’s column I mentioned my recent trip to Madrid where I had the choice of paying 85,000 SkyMiles or 15,000 Flying Blue miles for the exact same seat on the exact same flight.  

So even though the consensus value on Delta SkyMiles is around 1.2 cents per mile, for me that’s not realistic and I feel lucky if I get a penny a mile.   

Points and miles that are undervalued (to me) 

American Airlines AAdvantage miles 

Most estimates put the value of AAdvantage miles around 1.7 cents each, but they are worth more to me for a very specific reason: My husband’s family is from a small city in the Midwest and American Airlines is the only airline with a nonstop flight there from our gateway city. As is common, flights on routes that have very little competition can be very expensive. In fact, I have paid less to get to Europe than I have for some trips to see family in flyover country.  

But this nonstop flight that can cost in the ballpark of $400 in cash is often available for under 20,000 miles round trip on the same dates. I’ve even found dates costing as low as 6,000 AAdvantage miles each way. So for me, AAdvantage miles are worth at a minimum 2 cents, and often more like 2.5 cents per mile. They are especially valuable because of the lack of transfer partners now that the Bilt Rewards partnership has expired.  

IHG One Rewards Premier Credit Card

Intro bonus

Earn 5 Free Nights after spending $4,000 on purchases in the first 3 months from account opening

Annual fee	$99
Regular APR	21.49%–28.49% variable

Learn More

at Cardratings.com

Our Take

The IHG One Rewards Premier Credit Card may command a $99 annual fee (which is $99 more than its baby brother, the IHG One Rewards Traveler) but it piles on the perks and benefits to compensate. With 5 Free Nights welcome bonus (after meeting the minimum spending requirement), instant Platinum Elite status (granting free upgrades/early check-in), up to 10X on IHG purchases, an automatic free anniversary night, and $150 in travel credits it’s virtually impossible not to glean $99 worth of value from this card.  That said, its IHG One Rewards points are really only good towards future IHG stays and upgrades so it’s no good as a general-use travel card. And if you’d rather not have yet-another annual fee to worry about—regardless of value—the Traveler card is a better fit.  But if you’re even considering staying at an IHG property this year (Hotel Indigo, Holiday Inn, Crowne Plaza etc.), the IHG One Rewards Premier card is a must-have.

Rewards

Rewards Rates

• 10x10X on IHG purchases 
• 5xEarn 5X points on travel, gas stations, and restaurants
• 3xEarn 3X points on all other purchases

Card details

• • Additional perks: $50 annual United credit, TSA/Global Entry rebate, trip cancelation/interruption insurance, auto rental collision damage waiver, purchase protection, ability to spend to Diamond status

• • Foreign transaction fee: None

Learn More

at Cardratings.com

 

IHG One Rewards 

While most value IHG One Rewards between 0.5 and 0.7 cents each, in the last year I’ve gotten as much as 1 cent per point on stays in major cities such as New York City and Madrid. Thanks to the fourth night free benefit offered on IHG One Rewards credit cards, points stays effectively get a 25% discount when you stay in multiples of four nights. If you have a shorter stay, you’re not out of luck as IHG does have award sales on shorter stays with early access for IHG cardholders. IHG points are also easy to acquire, often at 0.5 cents per point, thanks to generous earning rates on my IHG cards and frequent buy points promotions offered by IHG.  

The takeaway 

Now that I’ve shared what I think miles and points are worth, I want you to ignore my valuations. That may seem like strange advice, but stay with me.  

When you try to figure out what an individual mile or point is worth, sure, it helps to do research. But then take a good look at how you want to spend your travel rewards. Because once you understand how you can use them, you’ll have a better idea of what miles and points are worth to you.  

Welcome to What’s in Dia’s wallet. In this monthly column I’ll share what’s, yes, in my wallet but also what’s on my mind. After over a decade covering credit cards, traveling an average of 100 nights a year, and earning and spending over a million points each year to do it, I’ve learned a few things. If you have questions or ideas for future topics please reach out to me at creditcards@fortune.com. Dia Adams, Senior Editor 

Please note that card details are accurate as of the publish date, but are subject to change at any time at the discretion of the issuer. Please contact the card issuer to verify rates, fees, and benefits before applying.