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Is Citi's Valuation Of Frequent Flyer Mile Awards Fair?

Ken Tumin
Ken Tumin   |     |   5,944 posts since 2009

From SmarterTravel.com

Citi calculates its 1099 amounts at $0.025 per mile, supposedly based on an average price of $625 for a domestic coach ticket, a trip that you can get for 25,000 miles. This valuation is, of course, ridiculously overpriced: