When Should You Use Cash Instead of Miles?

For those of us who diligently collect Avios, Virgin Points, or any other points, there's an almost instinctive urge to redeem them whenever possible. After all, you've earned them, and using miles for flights feels like getting something for free. But here's the truth that many points enthusiasts eventually learn: sometimes paying cash is actually the smarter choice. Knowing when to use cash instead of miles can mean the difference between maximising your rewards and squandering them on poor-value redemptions.

Understanding Miles Value

Before we can determine when to use cash, we need to understand what your miles are actually worth. This varies enormously depending on the programme and how you redeem them, but calculating it is refreshingly simple. Take the cash price of the ticket, subtract the taxes and fees you'd pay on an award booking, then divide by the number of miles required.

For example, if a flight costs £400 in cash or 25,000 Avios plus £100 in taxes, you're saving £300 by using miles. Divide £300 by 25,000 miles and you get 1.2p per Avios. That's your redemption value. Another example: a business class seat costs £2,500 in cash or 50,000 Avios plus £400 in taxes. You're saving £2,100, which divided by 50,000 gives you 4.2p per Avios, and that represents real value.

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As a general rule, you should aim for at least 1p per Avios or mile when redeeming. Premium cabin redemptions on long-haul flights often deliver 1.5p to 3p per point or higher, whilst short-haul economy flights might return less that 1p per point.

When Cash Makes More Sense

There are several scenarios where opening your wallet beats dipping into your miles balance. First, when flight prices are unusually low. If you can book an economy flight to Europe for £60 return, it makes little sense to spend 9,000 Avios plus taxes when those miles could be worth £90 or more on a better redemption. You're essentially paying 150% of the cash price in miles value.

Second, when taxes and fees are disproportionately high. Virgin Atlantic is notorious for this with their dynamic pricing for reward bookings, with some long-haul redemptions carrying £500 or more in taxes and surcharges. If a cash ticket costs £650 and a miles ticket costs £500 plus 50,000 Virgin Points, you're only saving £150 for 50,000 points - only 0.3p per Virgin Point. That's dreadful value.

I paid cash for this Business Class trip on Singapore Airlines, but that's because I was feeling bougie!

Third, when you need to maintain airline status. Paid tickets earn tier points and contribute to elite status, whilst reward tickets typically don't (we love that you do get tier points on Virgin reward tickets!). If you're close to reaching Silver or Gold status with its lounge access and other perks, paying cash could be the wiser long-term investment.

Finally, when you're booking refundable or flexible fares. Reward bookings often come with better cancellation terms than most cash tickets, and if your plans are uncertain, the flexibility of a refundable reward fare may be worth more to you.

When Miles Are Worth Spending

Of course, there are times when miles redemptions represent exceptional value. Premium cabin travel is the classic example, a business class seat to New York might cost £3,000 in cash but only 80,000 Avios plus £300 in taxes. Similarly, last-minute bookings during peak travel periods such as school holidays or Christmas, when cash prices skyrocket but award availability remains consistent, can offer tremendous value.

When Should You Use Cash Instead of Miles - Final Thoughts

The question isn't whether you should use cash or miles, but rather which option delivers better value in each specific situation. Don't fall into the trap of hoarding miles indefinitely or, conversely, spending them simply because they're there. Calculate the value you're getting per point, consider what you're giving up in terms of future flexibility or status benefits, and make an informed choice. Sometimes the best use of your miles is not using them at all, keeping your powder dry for those truly exceptional redemptions where business class dreams become reality at a fraction of the cash price. Your miles are a currency, spend them wisely.

Sam

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