Guide

Retained Points Value: Why Paying Cash Can Be the Best Redemption

One of the most common mistakes in points and miles is assuming that using cash means you’ve failed.

It doesn’t.

This Case Study compares several ways to book the same San Diego-to-Cabo trip: cash, an Alaska Airlines award, Membership Rewards through Amex Travel and an Alaska Companion Fare.

At first glance, using points appears superior. But the analysis changes when we consider what those points could accomplish elsewhere.

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Inside we examine:

The cash and points costs of each booking option
The opportunity cost of using approximately 82,000 Membership Rewards
Why transferable points deserve consideration beyond their immediate cash-equivalent value
The value of retaining both Membership Rewards and Alaska miles
How an Alaska Companion Fare changes the economics
Why paid travel can also generate additional rewards
The importance of future booking optionality
How to evaluate a booking based on total travel capital rather than cash savings alone

The best booking isn’t always the one that uses the fewestdollars—or the fewest points.

Sometimes it’s the one that leaves your travel balance sheet strongest after the booking is complete.