When you are a frequent traveler with an airline loyalty program like Delta’s SkyMiles, the question of whether to use your miles for flights or convert them into cash or cash equivalents often arises. At first glance, turning SkyMiles into cash may seem like a quick way to unlock value, but is it really worth it?
Valuation of SkyMiles
SkyMiles are generally valued between 1.1 and 1.5 cents per mile, depending on how you use them. This can vary greatly, especially when redeeming miles for premium flights, upgrades, or during sales or promotions. On the other hand, when converting miles to cash or gift cards, the value often drops significantly sometimes as low as 0.5 to 0.75 cents per mile. This means that a substantial portion of the value that you could get when booking flights is lost in the conversion process. For example, 10,000 SkyMiles, worth around 150 when booking flights, might only yield 50–75 when converted to cash. While cash is always flexible, the diminished value means you are potentially giving up a lot more purchasing power by opting for cash.
Flexibility vs. Maximizing Value
One of the reasons travelers consider converting miles into cash is the flexibility it offers. You can spend the cash anywhere, while miles are restricted to certain flights, upgrades, or Delta-related purchases. However, if you are looking to maximize value, using miles for flights particularly international or premium travel is usually a better option. Some travelers manage to get over 2 cents per mile when booking business class or first-class tickets, making miles much more valuable in those situations. For occasional travelers who do not fly often enough to accumulate a significant number of SkyMiles, converting miles to cash could make sense. This ensures the miles do not expire or become devalued by inflation or changes in the rewards program. However, if you frequently fly with Delta, it is almost always worth saving your miles for travel-related redemptions.
Other Redemption Options
Delta also allows you to use SkyMiles for vacation packages, gift cards, and merchandise through its online store. These options can offer better value than converting miles into straight cash, but still rarely match the value of using miles for flights. In many cases, the Sell Delta SkyMiles cost per mile for non-flight redemptions is less than one cent. Unless you have a pressing need for cash or are not planning to fly in the near future, converting your SkyMiles into cash typically is not worth it. To get the most out of your miles, it is better to use them for flights, where you can extract far more value per mile.
