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I once priced the option value of buying miles in March (I suspect the airline had too).
Depending on the week and destination, travelling is cheaper than buying miles, but there's a significant opportunity cost involved (I have to get on a plane and go to Seattle for no reason).It gets more complicated.
People who need just a few miles for an upgrade to a first-class ticket, for example, might be able to save money by simply buying miles directly from their favorite airline -- something American generally does not allow.
The main advantage of buying miles is that they are credited to a frequent-flier account faster than miles earned by other means, such as signing up for an airline partner's credit card, renting a car or staying at a hotel.
— Skip buying miles for an upgrade or a ticket.
"It's rarely worth buying miles from the airline to have enough miles to redeem a ticket".
Similar(49)
MCI and Citibank, for example, routinely buy miles from the airlines for consumer giveaways and seldom pay more than 1.5 cents each.
For self-paying passengers who upgrade with frequent-flier miles, the cost is supported by things like the fees that retailers pay to credit-card companies, which buy miles in bulk from airlines and distribute them to cardholders as rewards; for corporate executives and their lawyers, bankers, and consultants, the expense is partly borne by shareholders, as is also the case with corporate jets.
While punters bought miles of bunting for the Jubilee and stocked up on booze to watch Steven Gerrard lead England on their new flat screen TVs, an exceptionally soggy summer sank any hope of a lasting feel-good effect boost on consumer spending.
Although there is a limit to the number of miles frequent flier members can buy each year, all airlines offering mileage purchases also allow members to buy miles for someone else as a gift; the same terms and conditions generally apply.
Under the Better Place model, consumers can either buy or lease an electric car from the French automaker Renault or Japanese companies like Nissan General Motorssnubbeded Agassi) and then buy miles on their electric car batteries from Better Place the way you now buy an Apple cellphone and the minutes from AT&T.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com