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Is it better value to fly First/Business class than Economy?

This was so simple that I didn't focus on it because I lived it, breathed it and love it - I thought it was common sense, I thought everyone already knew.

This was so simple that I didn’t focus on it because I lived it, breathed it and love it – I thought it was common sense, I thought everyone already knew.

Why all my love for points – (1) it is because you accumulate them for free, and (2) you must use them to fly Business or First class to get the most value from them.

It is a bit like your boss saying to you.

It is not good value to fly Economy class, so you must choose to fly either First or Business class to that conference.

WTF!

The super simple value is: Did you know, if you run a business (or personal high spender), that every $100,000/year spend on cards can earn rewards of $4,000 to $7,000/year in business class flights (~4% to 7% return) – with no effort.

($100,000 /year = $8,333 /month)

This is just normal every-day expenses, such as supplies, chairs, electricity, marketing, google ads, facebook ads, entertainment, coffee, drinks, dinner…. If you can pay it on a card – it can earn reward points, and it’s sitting right under our noses.

Different reward cards earn different points at different rates.Different airlines redeem points at different rates.

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Where is this company that makes you fly business class?

Well, it can actually be ANY company.

Do you own calculations for your business.  How much rewards are you potentially missing out on?

That is ~4% return in reward/frequent flyer points where the best value is derived when using them to fly on business and first class.

So why is it?

The reasoning lies in the ratio between each class of the prices vs. points to fly. From the table below,

Using cash: Business class costs = 5x Economy fare, and First class = 7x/8x Economy fare.

Using points: Business class = 2x Economy points, and First class = 3x Economy points.

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To me, this was dead simple – but I’ve just discovered, no one else knows.

Is there something in your business which is just so simple, so under your nose, but yet such a powerful way to describe your business value-add. That you didn’t realise till recently…

What do you think about the calculations, will you start to collect your flight points to fly Business class?