Do you have thousands of flight points? Here is how to check what they are really worth
Points look like money, but their value varies greatly between a flight, a hotel, and an upgrade. The simple calculation: how much money is actually saved versus the number of points surrendered, and what it cost to accumulate them.
Israelis accumulate airline points through flights, credit cards, and current expenses. At El Al, this is an especially large system, with millions of members in the Frequent Flyer club and hundreds of thousands of FLY CARD holders. But 1,000 points in an account still mean very little on their own. The value depends on how you use them.
For example, a ticket costs 1,600 shekels, and it can be purchased for 1,000 points plus 300 shekels. The points actually saved 1,300 shekels, meaning 1.30 shekels per unit of accumulation. If those same 1,000 points save 300 shekels on a hotel booking, the value drops to 30 agorot. The same number of points, a very large gap in return. This is why it is worth examining every redemption as a transaction in itself. The cash price is the starting point, from which you subtract the amount remaining to be paid and divide by the number of points.
In airline tickets, the accumulation ratio is related to monthly spending, and alongside it, there are card fees and sometimes additional commissions. Anyone spending 10,000 shekels a month to accumulate points needs to check how much economic value is created against these costs. The foreign currency commission is also significant, so a nice benefit in accumulation can be eroded by a high commission.
Points tend to be especially attractive when the cash price of the ticket is high and the requirement in points remains moderate. Holidays, long flights, and high-demand dates can produce good deals. During sale periods, when the cash price drops significantly, it is sometimes better to save the points for another opportunity. Availability is part of the calculation. A ticket that offers an excellent ratio between points and money is worth little to a family that specifically needs a different date. Therefore, routes that combine points and money provide more flexibility, but even there, it is worth calculating the value for every booking.
The clubs themselves change. The FLY CARD has undergone a significant change in the last year as part of the transition to Isracard, and this is exactly the type of event that justifies a re-examination of the accumulation ratio, card fees, and benefits. Points are now used beyond flights as well. Here too, the question remains the same: how many shekels are received for each point. The feasibility increases for those who already fly with the company, concentrate expenses on the card, and manage to use points in transactions with a high conversion ratio. Accumulation that leads to choosing a more expensive product, paying high commissions, or changing shopping habits can erase a large part of the value even before arriving at the airport.
