Cents per point is the measure of a redemption's value: the cash price avoided, minus any co-payment, divided by the number of points spent.
Cents per point is the measure of a redemption’s value: the cash price avoided, minus any co-payment, divided by the number of points spent.
Also called: cpp, Redemption value.
How it works#
The calculation makes redemptions comparable and is the only figure that applies to your own case. The comparison price matters: it is the price of the ticket that would genuinely have been bought, not the most expensive fare on the screen. Choosing the comparison freely turns the number into a justification rather than a valuation, and every redemption can be made to look good that way.
Not to be confused with#
Cents per point is not the same as a published valuation chart: a chart averages other people’s bookings, while the calculation values the booking actually in front of you.
In German#
The German term is Cent pro Punkt. German version of this term
Related terms#
- Mile: A mile is the currency unit of a frequent flyer programme: a credit in an airline account that can be exchanged for flights and other awards.
- Transfer ratio: The transfer ratio is the rate at which one programme’s points convert into another currency, such as one to one or three to one.
- Points plus cash: Points plus cash is a redemption format in which part of the price is settled with points and the remainder with money.
Articles that use this term#
TopicEvery article and term onPoints and miles.