The Value of Air Miles

Ratehub.ca’s research shows the average value of an Air Mile is $0.121. Use this as your benchmark and whenever possible only redeem Air Miles when the value offered is close to or above the benchmark. Let’s look at an example.

It’s January 13th, 2015 and we’re trying to book a flight from Toronto to New York’s LaGuardia Airport for family day weekend: Friday, Feb 13th – Monday, Feb 16th. On Kayak, we can find a direct flight that will cost $288 including taxes and fees. Through Air Miles a similar flight would require 1,300 miles and an additional $117.56 in taxes and fees. Let’s calculate the value we would receive if we used our points.

Since $0.1311 is of greater value than the benchmark of $0.121, you will receive a strong return on your Air Miles. Redeeming your Air Miles in the above scenario will save you $170.44 and is a good invesment of your accumulated points.

Air Miles Dream Rewards are best suited to be redeemed for air travel (as their name suggests). Redeeming for flights provides the best value of the redemption options available to Air Miles members. The dollar value per mile when redeeming for merchandise pales in comparison to the dollar return on flights, providing roughly half the average dollar value of an Air Mile ($0.121/mile).

Let's take a look at the value of our miles when redeeming for two popular items: a Panasonic LED TV, and a Broil King grill.

Based on Ratehub.ca’s analysis (shown in detail on the “Value of Miles” tab) we have created an Air Mile value chart of the flight regions that on average offer a higher value than the benchmark of $0.121:

On average you receive exceptional value for your Air Miles by flying to the Midwest US region. Flights to Manitoba and East Coast Canada also provide good value for your points. Typically flights during high season offer more value than flights during the low season. Short haul, high season flights provide the highest dollar value for your points.

As you approach the date of a flight, the price of the ticket becomes more and more expensive every day while the required number of Air Miles and taxes remains constant. Since this is the case, you receive the greatest dollar value for you Air Miles when you book a last minute flight as opposed to booking months in advance.

The Air Miles Onyx program rewards top Air Miles collectors with numerous superior benefits. In order to become an Onyx collector, you must earn more than 6,000 Air Miles per year. As an Onyx collector, you’ll be granted access to travel and merchandise perks, special services, event and contest offers, and miles protection.

Travel perks include: greater access to airline seats, exclusive offers on select package vacations and cruises, and the ability to book flights with up to 40% fewer rewards miles. This is a great way to stretch your miles and ensure you get the most of every dollar you spend using your Air Miles credit card. In addition, your Air Miles won’t expire as long as you maintain Onyx status.

In contrast, the Air Miles Gold program rewards Air Miles collectors who earn 1,000 to 5,999 miles a year. This is much more attainable than the Onyx program. When you sign up for the BMO credit card, you’ll receive 1,000 miles with your first purchase. This would immediately qualify you for the Gold program.

The Gold program also offers travel and merchandise perks as well as events and contest offers. Gold collectors don’t receive as many benefits as Onyx collectors. However, you’ll still receive exclusive offers on select package vacations and cruises, and you can use up to 30% fewer miles to book select flights.

Whether you’re a Gold or Onyx Collector you’ll be able to redeem up to 40% fewer miles for select merchandise. In addition, you’ll be given access to a number of unforgettable events and contests, including up to 20% fewer reward miles on eligible seasonal activities, free movie passes on select films, and monthly giveaways.

For both the Gold and Onyx programs, you must re-qualify each year by Dec. 31. This means in order to maintain your status you must earn your required miles every year between Jan. 1. and Dec. 31.