30% off Redemption Bookings ECO/BUS Class @Singapore Airlines Krisflyer Travel between 1-31st May

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Singapore Airlines

• 

  illumination on 19/04/2018 - 20:51

  Good deal, but..

  On skyscanner the same dates cost $2730.
  This makes the booking 3cents per point when using krisflyer miles.

  Such point valuations only hold true if you were happy to pay $2730 for that flight anyway.

  If you weren't willing to pay the real price anyway, you're overstating the value of each point.

  • 

    googoogaga on 19/04/2018 - 21:24

    +1

    interesting, how would you determine the dollar value of points?

    • 

      gzalyu on 19/04/2018 - 21:38

      For example, by comparing to the cost of a flight booked at a sale rate since we're on OzBargain :P or even just at a normal advance booking rate. May 10th is a very close date to be looking at international long-haul flights.

    • 

      illumination on 19/04/2018 - 21:45

      +5

      It's a tough one.

      I am well aware that redemptions in premium cabins are always considered better value and it's always something I fight. Not because it's not true, but because often the reasons used to support why it is better value are similar to what you've said and I think it's misleading.

      I like to use analogies to explain this.

      It would be like..

      • Save 40% on ski hire. Normally $1000, now $600. But what if I don't like skiing? I'm not saving $600. I'm overspending $600.
      • Save 60% on soccer boots. Normally $200, now $80. But what if I don't like soccer? I'm not saving $80. I'm spending $80 on something I know I wouldn't use…
      • On the other hand.. petrol prices ordinarily $1.40/L, now $0.95/L. When people are low on petrol, you just pump petrol. It doesn't matter what the price is.

      To my last point, that's why things like the 7-Eleven fuel hack are so popular, despite saving "only a few dollars". It's about the fact that it's inelastic demand and it's something you know you'd pay for at whatever price. Other similar "inelastic" services we would pay (almost) irrespective of price:

      • Electricity
      • Gas
      • Water
      • Phone Bills
      • Home Internet
      • Medicine

      So, I largely agree that using points in Business Class and First Class is better value, but to use the actual ticket price that's available to the public and use that as your benchmark for your points valuation is a tad misleading.

      If as in your example ($2730 airfare), maybe you'd be willing to pay $2000 for it in cash? If that's your "upper limit" of what you'd pay, then that's the price you'd have to value your points at, which is why I'm saying it's a tough one to answer.

      The easiest way to value points is to look at gift card redemption value. It's risk-free, guaranteed, and is not usually subject to availability. Otherwise, you could look at selling points for cash which is better value (but a tad riskier).

      • 

        fantacular on 19/04/2018 - 22:00

        -1

        You must be interesting at parties

      • 

        illumination on 19/04/2018 - 22:05

        @dannnnn: Yea.

      • 

        googoogaga on 19/04/2018 - 22:11

        interesting point of view which is true. I guess its more like how much $ would you pay on top of a economy ticket for business class. And maybe say would you rather go business class or $XX giftcards.

        I just checked skyscanner and economy for the dates i posted to singapore is only $595. Is it normally that cheap? like wtf?

        anyhow figuring out how much 81200 is worth in giftcards
        13500(amex)pts = $100 westfield (chose these because harder/impossible to get discounted)
        this equates to 6 cards which is $600

        So you either pay $595 cash for economy or you spend 81200pts ($600 giftcard value) + $155.18 tax for business class. Which is "$160.18" difference
        I'm still not sure how to put a $ value on points when redeemed for flights.

      • 

        illumination on 20/04/2018 - 00:22

        @googoogaga:

        I guess its more like how much $ would you pay on top of a economy ticket for business class.

        Yep. What some ozbargainers ask is, "how is business class better value when I can get 2x economy class airfares for the same number of points as 1x business class fare?"

        I just checked skyscanner and economy for the dates i posted to singapore is only $595. Is it normally that cheap? like wtf?

        Can be. The fact that this deal (30% off redemptions) is on is indicative that this is probably a somewhat off-peak period of travel.

        I agree with your breakdown and using Westfield GCs as a benchmark.

        Your comparison of Westfield GCs vs the economy class flight is somewhat accurate.

        However, most would probably argue that instead of using those 81200 points on these Westfield GCs, you could get upwards of $812 for those 81200 points.

• 

  Lunarboogie on 20/04/2018 - 07:27

  The baseline for valuing frequent flier points isn't gift cards. Instead it is what you can get for the points if you sold them on the market. Accordingly, as they go regularly on this site for between 1 - 1.3 cents per dollar, that should be the valuation you use.

  Ergo, in the above scenario 81200 Krisflyer points is worth between $812 - $1056. When you add the $155 in taxes you'll soon realise you're paying quite a bit more for the 'free' flight than you would otherwise think. Then to draw on Illumination's point, if you wouldn't normally spend over $1000 on a one way journey in any class then this transaction becomes an expensive one for you, especially when you can get a return economy flight for under $600. If I was considering this scenario, the economy price would win hands down.

  • 

    googoogaga on 20/04/2018 - 08:19

    it is 81200 return though, not 1 way.

    But I can see your point. Basically its double the price of economy to fly business.

    • 

      Lunarboogie on 22/04/2018 - 11:01

      Yeah my bad. Glad you got my point.

      In this scenario, I'd sell the 81k and net as much as $1056. Buy the economy flight for $600 and then wax the balance at the Hilton SG for $130 per night for 5 nights. All up, a 5 day holiday for $200 or so bucks. Plus you'd get points on the Y flight and Hilton points which will defray the costs of your next sojourn or you could sell them on this site.