When Not to Use Your Miles: Situations Where Paying Cash Is Better

Understanding the Value of a Mile

Before diving into specific scenarios, it’s important to remember that miles and points have real monetary value, but this value isn’t fixed. It depends on:

• How many miles are required for a redemption
• The cash price of the same ticket or hotel night
• Taxes, surcharges, and fees
• Redemption rules and availability

A simple formula helps you determine the value of a redemption:

(Cash price – Taxes and fees) ÷ Miles required = Value per mile

If that number is lower than the average value of your miles, it’s a weak redemption — and you should probably pay cash instead.

Poor-Value Domestic Flights

Domestic routes, especially short-haul or off-peak flights, often have cheap cash fares. In many cases, using miles here yields less than 1 cent per mile in value.

Example

• Miami to Orlando
• Cash fare: $89
• Award: 15,000 miles + $5.60
• Value per mile: ($89 – $5.60) ÷ 15,000 = $0.0055 (0.55 cents)

Better to pay cash and save your miles.

When There Are Airline Award Sales

Airlines frequently offer discounted cash fares that undercut the cost of booking with miles. Since mileage redemptions are tied to dynamic pricing in many programs, miles may still cost more than cash.

Always compare both options before redeeming.

Booking During Transfer Promotions

If your miles came from a flexible bank program, it may be better to wait for a transfer bonus instead of redeeming now.

Example

• Transfer 50,000 points today = 50,000 miles
• Wait a few days = 30% bonus = 65,000 miles

Delaying could save you thousands of points.

When the Redemption Is Close to Expiration

Using miles just because they’re about to expire can lead to waste. Alternatives include:

• Booking useful short trips
• Donating miles
• Paying a small fee to extend them
• Redeeming or earning a small amount to reset expiration

Use miles with intention, not out of fear.

Booking Economy Class with High Surcharges

Some economy redemptions come with heavy fees, especially on European carriers.

Example

• Award: 20,000 miles + $250
• Cash fare: $300
• You save $50 for 20,000 miles — that’s terrible value

In these cases, cash is clearly the better option.

When You’re Trying to Earn Elite Status

If you’re close to qualifying for elite status, it’s better to pay for flights with cash. Award tickets usually don’t count toward elite qualification.

Cash fares help you progress and may come with bonuses, lounge access, and upgrades if you hold status.

Last-Minute Flights with Inflated Mileage Prices

Some airlines increase mileage prices dramatically as the departure date approaches. A flight that cost 25,000 miles last week may now cost 60,000 or more.

If cash prices haven’t changed, it’s smarter to pay with money than use inflated miles.

When Miles Are More Valuable for a Future Trip

Sometimes using your miles now means losing out on a much better redemption later.

Example

• 50,000 miles for a $300 domestic round-trip
• Or use the same 50,000 miles for a $2,500 business class one-way to Europe

The long-term option is worth more than 8x the value.

When You Can Pay the Fare with Points in a Travel Portal

Programs like Chase and Amex allow you to book flights through their portals at a fixed value per point. This can be a better option if:

• Airline award space is limited
• Taxes are high on award tickets
• Portal prices are lower than the redemption cost in miles

It keeps things simple and flexible.

When Booking with Airline Partners Is Cheaper

Redeeming through a partner airline often requires fewer miles and lower fees.

Example

• Lufthansa flight via Lufthansa: 35,000 miles + $300
• Same flight via United: 30,000 miles + $50
• Same flight via Avianca: 27,500 miles + $10

Always compare across partners before redeeming.

When You’re Close to a Future Goal

If you’re just a few thousand miles away from an aspirational redemption — like business class long-haul — don’t waste your balance on low-value trips.

Strategy Tip

Use cash for cheaper trips and hold your miles for more valuable redemptions.

Final Thoughts: Redeeming Miles Should Be Intentional

Miles are currency. Every time you use them, you’re spending value that could take you further if used differently. The smartest travelers know that just because you can redeem doesn’t mean you should.

Before you use miles, always ask:

• Am I getting good value per mile?
• Is this the best possible use?
• Do I have better opportunities coming up?

Don’t burn your miles — invest them wisely.