cash equivalent of airline miles

airline miles have proven to be one of the greatest promotional gimmicks of all time. They're exciting to collect, knowing that you'll eventually be able to take a free trip anywhere you like, That said, there are a few things you'll need to know if you hope to actually use your frequent flyer miles any time in the future.

The generally accepted cash equivalent of airline mile is 2 cents!
Most airlines sell miles, both to consumers for their own accounts and to businesses for use as sales incentives. Members of the programs of American, Delta, and United, for example, can purchase miles for between 2.5 and 3 cents each, plus tax and processing fees.

it takes 25,000 frequent flyer miles to get a round trip domesitc coach class ticket, you're paying about $500 for that ticket. Here's where you need to be smart and make a good decision - for example, with a 21-day advance purchase you can buy a ticket to fly round-trip between New york and and Ft. Lauderdale for about $170. I absolutely wouldn't use my miles for those flights. However - if you haven't planned for that trip and must purchase your ticket at the last minute, those same flights could cost well over $600. That's where you get good value from your miles -paying the equivalent of $500 for a $600+ ticket.

longer flights may represent poor value for airlines miles. It is not uncommon to find fares to Asia offered for as little as $800. Or, you could redeem 100,000 miles for the same trip. In the latter case, you'd be getting the equivalent of .73 cents per mile, very much on the low end of the scale.If a frequent flier award has a value of more than 2 cents a mile, it's certainly worth a second look. If not, consider purchasing the ticket or redeeming the miles for a more expensive trip.

There have been a lot of scams, schemes in the airline industry that have allowed airlines to promise frequent flyer miles without ever delivering on them. Most airlines try to deal squarely with customers, but when an airline faces lower revenue, they may wind up dropping their frequent flyer program or otherwise devaluing the miles their customers have collected. To make sure you're being dealt with squarely, look for an airline that has a strong reputation with their FF program in order to make sure you get to spend the miles that you've earned over time.