Dilemma: To Use Velocity Points or Not?

Ameowzon on 31/10/2019 - 23:32

Hello,

I have accumulated 191800 Velocity points.

I’m planning a trip to the US next year, between Mar and Apr. Here are my options:

Option 1
Pay $3100 cash and not use any points to buy via Virgin

Option 2
Pay $2900 cash and not use any points to buy via Aunt Betty

Option 3
Use 179000 points, pay $571 in taxes for 3 people
The 4th person has to pay $900 to buy via Aunt Betty
This fare doesn’t include JFK to LAX. That’s additional $600 for 4
Summary: Use 179000 points, pay $2071

Option 4
Buy 15000 points for $350, use all points, pay $600 in taxes for 3 people
The 4th person has to pay $1000 to buy via Aunt Betty
This fare includes JFK to LAX (thus the increased in points)
Summary: Use all points, pay $1950

——

Option 3 and 4 save me $900-1000 but I use 179000-all points. I think the points worth more, right? How much does it worth?

I should really go with Option 1, right? If I do that, how else can I spend my 191800 points?

Thanks!

Travel

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Comments

  • p1 ama on 31/10/2019 - 23:43
    +5

    Based on your travel plans, sell your points for around 1c per point. That will leave you with around $2000, so basically only an extra $900 to go with Option 2.

    You would have to pay $2071 to go with Option 3, so don't go with that option.

  • RockyRaccoon on 01/11/2019 - 07:28

    Keep in mind that you also get points when you pay for flights so factor in that as well. Plus buying gives alternative carrier deals so you could save more

  • Trinion1 on 01/11/2019 - 12:12
    +1

    Option 1 - $3100
    Option 2 - $2900
    Option 3 - $2071 + 179000 points
    Option 4 - $1950 + 191800 points

    Velocity points can be valued at least 1c per point. Someone in classifieds is even selling at 1.3. 1.1c/p is more reasonable.
    So essentially options 3 and 4 will have an actual cost of $4040 and $4059.

    Value you get from points for economy tickets isn't very good. The value you get from booking business award flights is much better.
    There should be plenty of interest from people wanting to buy points, but if you are not comfortable selling points then the points-to-money conversion is irrelevant.

  • HardQuiz on 01/11/2019 - 13:41
    +1

    1 or 2 and use the points later

  • Ameowzon on 17/11/2019 - 00:06

    In the end, I sold my points, and bought tickets via Qantas. I made a few hundred dollars in the process.

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