# Another points sale



## Chey (Jan 16, 2016)

in my email today

5% off regardless of how many; bonuses by quantity:

1k - 4.5k points = 10% bonus

5k - 9.5k points = 20% bonus

10k - 14.5; points = 25% bonus

15k = 30% bonus

It was a no-brainer under the old system but I only have one trip planned that I haven't booked and paid for, and it looks to me like it's a good idea only to buy enough for that trip. After the 24th I don't know if points are going to be worth that much.

If I were to get the maximum and book a trip now - any trip - and then reschedule it later, would I take a hit in the value of the points?


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## Ryan (Jan 16, 2016)

It wasn't always a no brainer in the old system, where the points you purchased could have been redeemed for trips of varying cost. For some trips, buying and redeeming points would be far more expensive.

Now that points are redeemed at a fixed rate, the maths become easy (although I'll likely find a way to screw it up).

Points look like they'll be redeemed at 34.5 cents/point.

Purchasing points comes at 37.7 cents/point. Without the bonus, doesn't make sense to buy points, unless you need a "top up" to redeem an award using points you've earned another way (indeed that's likely what the "cash+points" option is going to be).

With the bonus, they (unsurprisingly) become even. For $565 you purchase the max of 15,000 points and get 4,500 bonus points for a total of 19,500 received. If you want to redeem points for $565 worth of travel, how many points will it take? 19,493.


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## George K (Jan 16, 2016)

Good analysis, Ryan.

Yeah, at 37.7¢ per point, and the value at 34.5¢, I fail to see why it would make sense. But. with the "bonus," as you say, at 37.7 it's a break even.

But, if you're like me, you build up points until you have enough for a trip.

Now, with the ability to combine points and cash, that becomes a lot easier. I imagine point purchase will be ~ 37¢, right? Why bother buying, when there's no advantage?

By way of example, I was able to book a 4 night stay in DC at the Capital Hilton for only $275 by combining points and dollars. It will be nice to do that with Amtrak.


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## Chey (Jan 16, 2016)

Thanks for the analysis. I ended up buying just enough to add to my existing points to make the reservation - booked it and saved about $300 off of the price given online for the date I wanted to go. I have almost no points left! From here on out I'll just be collecting the points from whatever travel I get to do by train.


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## willem (Jan 16, 2016)

Has there been any positive statement that a points plus cash redemption will not include a penalty, as in devalued points, compared to the 34.5 cents per point for non-Acela travel on full rewards trip? If there is no penalty, then wouldn't it make sense to redeem points as fast as they are earned? This would avoid the situation where Amtrak (or Amtrak Guest Rewards, more accurately) is holding the value without paying any interest and exposing the customer to the risk of further devaluation. Furthermore, reticketing to take advantage of a reduced fare might be better.

Consider someone who holds a points plus cash reservation. For illustration assume 1,000 points and $345 (which I believe is a 50-50 split and therefore a $690 value ticket). If the same itinerary becomes available for $590 and the customer modifies the ticket to take advantage of the lower price, does the customer get a voucher for $100 or a refund of 90% of 290 points? (Please correct my math if I'm off, but the question stands.) If the customer has the choice, then it would seem to make sense to use points plus cash for every reservation.


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## Ryan (Jan 16, 2016)

I think that we'll have to wait until the new website is actually live.


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## Train2104 (Jan 17, 2016)

Ryan said:


> Points look like they'll be redeemed at 34.5 cents/point.


What are these 30-something numbers? I thought it was 2.9 cents a point?

At the maximum (w/bonus), I get 2.75 cents a point, which is still a (tiny) discount.


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## Ryan (Jan 17, 2016)

Divide the other way. $/pt, not pt/$.


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## Carolina Special (Jan 17, 2016)

A question in my mind is when the points + cash option will be available. The AGR web site Sneak Preview says "coming in 2016" for this, while all the other changes seem to be specifically scheduled for 1/24/16.


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## Ryan (Jan 17, 2016)

Soon.


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## me_little_me (Jan 17, 2016)

Train2104 said:


> Ryan said:
> 
> 
> > Points look like they'll be redeemed at 34.5 cents/point.
> ...


I thinks there has been a math error by some people. I wish we got 34+ cents/point. 15K under the old system would buy you $5000 worth of travel under the new and I would kiss Anthony for that deal.


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## TinCan782 (Jan 17, 2016)

Carolina Special said:


> A question in my mind is when the points + cash option will be available. The AGR web site Sneak Preview says "coming in 2016" for this, while all the other changes seem to be specifically scheduled for 1/24/16.


I would guess January 24 as that is the day for all of the new AGR program to be implemented.


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