What is the value of miles and points by airline, hotel and credit card program? Miles used to be thought to be worth 2 cents. I think that conventional wisdom developed out of the idea that a cross country flight cost about $500… or 25,000 miles. 25 years ago that was generally true, and award availability wasn’t really a problem either.
Today the CEO of Delta talks about their miles being worth a penny. When American Airlines awards a mile for travel they book one cent of liability on their books under new accounting rules adopted for 2018. Those rules required the airline to accrue the expected value of transportation to be provided in exchange for their miles.