Knowledge Hub · Glossary
Redemption Value
Redemption value is the dollar value you actually capture from a points balance when you use it for a specific reward. It is the real world result, measured per point or for the whole transaction. The same points can carry very different redemption value depending on how you spend them.
What it means in practice
Two redemptions from the same balance can land miles apart. Cash out 50,000 points at one cent each and you get 500 dollars. Move those same 50,000 points to an airline and book a seat that would cost 1,500 dollars, and your redemption value tripled.
Thinking in redemption value keeps you honest. It stops you from treating a points balance as a fixed number of dollars, because the dollars depend entirely on the door you walk through.
Example
You spend 50,000 points on a flight worth 1,000 dollars in cash, so your redemption value is 1,000 dollars, or two cents per point.
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