How A lot Are Factors Value? (Quarter 1 2023)

Now that Quarter 1 of 2023 has arrived, it’s as soon as once more time to revisit our Factors Valuations, which we replace on a quarterly foundation.

In the course of the earlier quarter, there wasn’t an excessive amount of motion within the loyalty panorama. A number of packages signalled potential shifts to happen, however nothing of be aware has since materialized.

Alaska Airways Mileage Plan unveiled a brand new award chart, however there hasn’t been any materials adjustments as of but. We’re all anxiously awaiting Marriott Bonvoy’s full transition to dynamic pricing, which is anticipated to roll out within the close to future.

In any other case, the loyalty scene stays pretty steady as soon as once more this quarter.

Earlier than we delve into the valuations, I ought to remind you that the main target of those valuations lies within the goal redemption worth of every factors foreign money, relatively than the acquisition value that you simply may incur (which may range considerably relying on how you like to earn factors).

Aeroplan

Aeroplan was persistently within the information feed over the past quarter of 2022. The loyalty program added partnerships with Bamboo Airways, Emirates, and SunExpress, inching the entire variety of companion airways nearer to 50.

In 2023, Emirates First Class will change into out there utilizing Aeroplan factors, albeit with a separate (and extra expensive) award chart. With the current brutal devaluation of Emirates Skywards, Aeroplan will set up itself because the loyalty program of selection for premium cabin bookings on Emirates going ahead.

Moreover, we additionally noticed the disclosing of widespread enterprise class award availability on long-haul Singapore Airways routes, which is a welcome growth for entry to one of many world’s greatest airways.

Aeroplan continues to dazzle with its ever-increasing record of companion airways and the convenience with which we are able to earn Aeroplan factors.

Our valuation of Aeroplan factors stays steady this quarter. Nonetheless, there was loads of upward momentum in this system as of late, and this long-held valuation might change for the higher in 2023 if this system reaches the spectacular 50-partner mark.

• Continued valuation: 1.6 cents/level (USD), 2.1 cents/level (CAD)

Air France/KLM Flying Blue

Air France/KLM Flying Blue miles proceed to change into extra fascinating and available within the North American context. Every month, this system unveils its Promo Rewards, which cut back the price of redemptions on particular routes.

In December, the price for a enterprise class flight between Montreal and Europe dropped to simply 27,750 miles, which was an excellent deal.

This system additionally signalled that it’s going to enable free stopovers in Paris or Amsterdam on reward bookings, though we’ve got but to see it formally roll out.

With a widespread community in Canada and america, in addition to intriguing prospects with Promo Rewards, Air France/KLM Flying Blue continues to be on our radar as an ideal choice for flights throughout the Atlantic.

Our valuation of Flying Blue miles stays regular this quarter, however hopefully we’ll see much more enhancements to this system that lead to an upward shift within the close to future.

• Continued valuation: 1.3 cents/mile (USD), 1.8 cents/mile (CAD)

Alaska Airways Mileage Plan

Since formally becoming a member of the Oneworld Alliance, Alaska Airways has been busy including plenty of companion airways for incomes and redeeming on its Mileage Plan loyalty program. Moreover, the Canadian MBNA Alaska Airways co-branded bank cards had been abruptly discontinued, marking an unlucky finish to Canada’s solely simple path to Alaska miles accumulation.

In late December, the loyalty program launched a “simplified” award chart, which changed the earlier multitude of separate charts.

Whereas we haven’t seen any of this system’s candy spots, akin to Cathay Pacific First Class or Japan Airways First Class, evaporate, the brand new chart makes use of regarding “beginning at” costs. This might sign an eventual shift in the direction of dynamic pricing, however not less than for now, it’s enterprise as standard.

Remember to lock in any redemptions for 2023 earlier than any additional adjustments presumably happen. Whereas the valuation of Alaska miles stays unchanged this quarter, this is probably not the case in Q2 of 2023 if we see a devaluation.

• Continued valuation: 1.8 cents/mile (USD), 2.4 cents/mile (CAD)

CIBC Aventura: 1.25cpp Prolonged By means of to July 16, 2023

Within the second quarter of 2022, CIBC’s Aventura program placed on a particular promotion which allowed Aventura cardholders to make use of factors to redeem in opposition to any journey buy at double the same old fee: 1.25 cents/level as a substitute of 0.625 cents/level.

This promotion, which was initially set to run out on the finish of 2022 has been prolonged as soon as once more to July 16, 2023.

In November, CIBC launched new bank card presents price over $500 (CAD). If you happen to’ve had your eye on an Aventura bank card, which may very well be very useful for incidental journey purchases, now’s nearly as good of a time as ever so as to add one to your pockets.

The valuation of Aventura factors ought to stay regular by means of the primary two quarters of 2023, until CIBC decides to make this a everlasting worth. 

• Continued valuation: 1.25 cents/level (CAD)

Marriott Bonvoy

Marriott Bonvoy noticed some main adjustments in 2022, with the transfer in the direction of dynamic pricing being rolled out in phases. We’re now in 2023, and the subsequent and ultimate section of the transfer is imminent.

When the loyalty program absolutely implements dynamic pricing, there’ll not be a ground or a ceiling for redemptions. That is absolutely dangerous information for aspirational resort redemptions, that are prone to improve considerably.

If you happen to haven’t already, you should definitely lock in any resort stays for 2023 earlier than the ceiling lifts on award costs.

All indicators are pointing in the direction of an imminent devaluation, however as of this second, the worth stays the identical.

• Continued valuation: 0.7 cents/level (USD), 0.9 cents/level (CAD)

Factors Valuations, Quarter 1 2023

Right here’s a abstract of our Factors Valuations for Quarter 1 of 2023. You possibly can check with the Factors Valuations web page for a full record with further notes.

Conclusion

The final quarter of 2022 noticed comparatively minor developments within the loyalty panorama.

Aeroplan added one other three airline companions, and bolstered its relationship with Singapore Airways by offering members entry to long-haul enterprise class awards. 

Air France/KLM Flying Blue continues to supply nice worth with Promo Rewards, and hopefully we’ll see extra discounted enterprise class on North American routes in 2023.

CIBC’s inflated worth for Aventura factors has been prolonged by means of to July 16, 2023, which is especially nice when mixed with the present bank card presents.

Lastly, Marriott Bonvoy and Alaska Airways Mileage Plan have us questioning the way forward for the 2 packages, however for now, there aren’t any main shifts to report.

Keep in mind, deal with these numbers as merely a suggestion for affordable goal redemption values when deciding whether or not to redeem factors or pay money in your subsequent journey.

In the end, the worth derived from each redemption will probably be subjective to the person traveller, and our valuations are designed for instance a median benchmark throughout the group to assist inform your resolution as you contemplate your subsequent factors redemption.