A bazillion blogs have been written about the new offer for 50K TYP after $3K in spending.
It's a much better deal given the lower spend required vs. the 15K spend because the extra 12K spend can be used for 2 Exec Plat cards and earn 100K AA miles with 2K spend left for some other purpose.
I'm churning the AA Exec Plat, and wanted to figure out if I should use one of my 8/65 pulls (assuming you know about this) for this card instead of the AA Exec Plat.
The very interesting feature of the Prestige is using the TYPs for AA flights with a .016 cash redemption. It's interesting because you earn miles on the flight since AA considers it a cash purchase. You also earn TYPs from the purchase, but when you buy an $800 ticket the 800 TYP earned is not meaningful.
What is meaningful is if you assume the $800 pays for 6 cents a mile to somewhere, which is easily achievable, you earn 13K+ redeemable and 13K+ EQM miles.
Ignoring the value of lounge access (which I can since I have other cards which provide it), and the value of EQM miles (which I will since not sure I'll be close to qualifying for Exec Plat), the key variable is the value of AA redeemable miles.
First is the calculation showing AA miles at .02, where the Prestige wins, and then at .03 where the Exec wins. Personally, I always get at least .03 for my premium cabin international travel.
I'm sticking with the Exec Plat for now.
Citi Prestige Sign-up Bonus
50,000 TYP Sign-up Bonus
$0.016 Cash towards Airfare
$800 Value of TYP Sign-up Bonus
Using the Prestige Sign-up Bonus
$0.060 Assume cost per mile of an $800 purchased ticked
13,333 AA Redeemable Miles Earned by paying with Sign-up Bonus Points
$0.020 Valuation of an AA Mile
$267 Dollar Value of Redeemable Miles earned from using the Sign-up Bonus
$1,067 Value of TYP Sign-up Bonus PLUS Value of Redeemable Miles earned from using the Sign-up Bonus
Accounting for Annual Fee and Airline Credit
-$450 Less AF
+$500 Plus Airline credit x 2 Calendar years
$1,117 Total Value of the Prestige Signup Bonus at .02 valuation (After Airline Credit and AF, but ignoring value of Lounge access and EQMs)
AA Exec Valuation at .02 Valuation of an AA miles
50,000 Miles earned after $5K spend
$1,000 AA Exec Sign-up Value
Summary using .02 Valuation of an AA Mile
$1,117 Total Value of the Prestige Signup Bonus (After Airline Credit and AF, but ignoring value of Lounge access & EQM)
$1,000 AA Exec Sign-up Value
Summary using .03 Valuation of an AA Mile
$1,250 Total Value of the Prestige Signup Bonus (After Airline Credit and AF, but ignoring value of Lounge access & EQM)
$1,500 AA Exec Sign-up Value
It's a much better deal given the lower spend required vs. the 15K spend because the extra 12K spend can be used for 2 Exec Plat cards and earn 100K AA miles with 2K spend left for some other purpose.
I'm churning the AA Exec Plat, and wanted to figure out if I should use one of my 8/65 pulls (assuming you know about this) for this card instead of the AA Exec Plat.
The very interesting feature of the Prestige is using the TYPs for AA flights with a .016 cash redemption. It's interesting because you earn miles on the flight since AA considers it a cash purchase. You also earn TYPs from the purchase, but when you buy an $800 ticket the 800 TYP earned is not meaningful.
What is meaningful is if you assume the $800 pays for 6 cents a mile to somewhere, which is easily achievable, you earn 13K+ redeemable and 13K+ EQM miles.
Ignoring the value of lounge access (which I can since I have other cards which provide it), and the value of EQM miles (which I will since not sure I'll be close to qualifying for Exec Plat), the key variable is the value of AA redeemable miles.
First is the calculation showing AA miles at .02, where the Prestige wins, and then at .03 where the Exec wins. Personally, I always get at least .03 for my premium cabin international travel.
I'm sticking with the Exec Plat for now.
Citi Prestige Sign-up Bonus
50,000 TYP Sign-up Bonus
$0.016 Cash towards Airfare
$800 Value of TYP Sign-up Bonus
Using the Prestige Sign-up Bonus
$0.060 Assume cost per mile of an $800 purchased ticked
13,333 AA Redeemable Miles Earned by paying with Sign-up Bonus Points
$0.020 Valuation of an AA Mile
$267 Dollar Value of Redeemable Miles earned from using the Sign-up Bonus
$1,067 Value of TYP Sign-up Bonus PLUS Value of Redeemable Miles earned from using the Sign-up Bonus
Accounting for Annual Fee and Airline Credit
-$450 Less AF
+$500 Plus Airline credit x 2 Calendar years
$1,117 Total Value of the Prestige Signup Bonus at .02 valuation (After Airline Credit and AF, but ignoring value of Lounge access and EQMs)
AA Exec Valuation at .02 Valuation of an AA miles
50,000 Miles earned after $5K spend
$1,000 AA Exec Sign-up Value
Summary using .02 Valuation of an AA Mile
$1,117 Total Value of the Prestige Signup Bonus (After Airline Credit and AF, but ignoring value of Lounge access & EQM)
$1,000 AA Exec Sign-up Value
Summary using .03 Valuation of an AA Mile
$1,250 Total Value of the Prestige Signup Bonus (After Airline Credit and AF, but ignoring value of Lounge access & EQM)
$1,500 AA Exec Sign-up Value
