Etihad Guest | Calculations Explained
mile for Flights calculated?
Flights Cost per Mile: £1.07
Source: Etihad Guest
Using a one-way flight from London Heathrow (LHR) to Zayed International Airport (AUH) as an example, here’s the breakdown of the average cost per mile based on travel class and Bronze tier status:
The average cost per mile for each travel class is calculated by dividing the spend by the miles earned.
- Economy Class: £1.86 per mile
- Business Class: £0.78 per mile
- First Class: £0.59 per mile
Taking the average of these values across all three travel classes gives an Average Cost per Mile of £1.07:
Average Cost per Mile = (£1.86 + £0.78 + £0.59) / 3
Average Cost per Mile = £1.07
How is the average cost per mile for Hotels calculated?
Hotels Cost per Mile: £0.85
Source: IHG Hotels & Resorts
The Hotels Cost per Mile of £0.85 is based on data from IHG Hotels & Resorts. Here’s how it’s calculated using a stay at an IHG hotel in London as an example:
- Cost of Stay: £460
- Miles Earned: 500 miles per stay
To calculate the average cost per mile:
Average Cost per Mile = £460 ÷ 500
Average Cost per Mile = £0.85
How is the average cost per mile for Credit Cards calculated?
Credit Cards Cost per Mile: £1.00
Source: American Express
American Express (AMEX) is renowned for offering credit cards that allow users to earn Membership Rewards® Points, which can be transferred to various airline frequent flyer programmes. Typically, cardholders earn 1 Membership Rewards Point per 1 USD, GBP, or EUR spent on general purchases, with opportunities to earn additional points on specific categories like flights and hotels.
These points can often be transferred to airline partners at a 1:1 ratio, effectively converting them into frequent flyer miles. This means the Cost per Mile for general spending with AMEX cards is typically £1.00, as one mile can be acquired for every pound spent.
It's important to note that many AMEX cards come with annual fees that are significantly higher than those of the Plutus Card. For example, the American Express® Gold Card has an annual fee of £195, while the Platinum Card® from American Express carries an annual fee of £650. This means that, in addition to offering a lower cost per mile, in many instances Plutus provides a more cost-effective solution with its lower subscription fees.
How is the average cost per mile for Car Rentals calculated?
Car Rentals Cost per Mile: £1.22
Source: Hertz
The Car Rentals Cost per Mile of £1.22 is based on data from Hertz. Here’s how it’s calculated using rental of a (K6) Land Rover Defender as an example:
- Cost of Car Rental: £675
- Miles Earned: 550
To calculate the average cost per mile:
Average Cost per Mile = £675 ÷ 550
Average Cost per Mile = £1.22
This calculation provides a general benchmark for car rental rewards, but the cost per mile can vary depending on the type of vehicle, rental duration, and location.
How is the Overall Total average cost per mile calculated?
To determine the Overall Total Average Cost per Mile, we take the average of the Cost per Mile across key travel categories:
- Flights: £1.07
- Hotels: £0.85
- Car Rentals: £1.22
- Credit Cards: £1.00
The calculation is as follows:
Overall Total Average Cost per Mile = (1.07 + 0.85 + 1.22 + 1.00) ÷ 4
Overall Total Average Cost per Mile = £1.02
This provides a comprehensive benchmark for travelers, showing the average cost per mile when earning rewards across these popular categories.
