JetPrivilege upto 50% bonus on buying miles through April 2016

JetPrivilege frequently offers a mileage sale, where they offer bonus miles. This month, they are back with another sale on miles, where a tiered bonus up to 40% is being offered for the sale of miles. 40% is the usual standard when Jet Airways’ makes a mileage sale, but this time there is an interesting kicker as well.

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JetPrivilege Mileage sale promotion

For the current offer, valid between April 06, 2016 and April 30, 2016, Jet Airways is offering up to 40% bonus miles in various tiers. Here are the bonuses per tier. Bonuses start if you buy above 3,000 miles and you get a 40% bonus if you buy above 30,000 miles in one transaction. The kicker is the additional 10% bonus for the highest purchaser everyday during the campaign period. JetPrivilege does not have a cap on the buying of miles.

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Analysing this promotion

During this promotion, JetPrivilege is offering 40% bonus on a purchase of 30,000 miles and above. In this case, the per mile cost of INR 1.25 +14.5% tax (INR 1.43) fetches you 1.4 miles rather than 1 mile, making the cost at INR 1.02 per mile inclusive of taxes for the highest bracket. Additionally, if you pay with a co-branded credit card, you will receive a bonus as well for purchasing with your co-branded card, just as you would get a bonus for buying a Jet Airways’ ticket.

Personally, when I choose to burn miles, I try and gain at least 1 INR value on the miles spent (Indian airlines). For instance, if a Mumbai – Delhi flight is selling at INR 3500 (net cost), I’d value it as follows:

  • 706 miles towards BOM-DEL
  • 353 miles towards platinum bonus (50% elite bonus)
  • 1155 miles towards buying the ticket (10x HDFC partners)

Hence, in this case, I’ve already earned 2214 miles, at least 1 tier point on Jet Airways towards requalificiation and so on. So I would rather spend INR 3500 in cash rather than burn 8500 miles + taxes to get an average value of INR 0.32 per mile.

When I buy the same ticket in business class, however, the dynamics change. Using the average cost of the ticket at INR 25000, I would get a business class seat at 17000 miles + taxes, allowing me to get at least INR 1.5 value per mile.

As such, this math changes when you are in the market for an international ticket on Jet Airways or an award partner, since there, you’d usually get a higher value for your miles over domestic routes.

Would I buy?

I have more than enough miles at the moment on JetPrivilege, so I won’t be in the market for this offer

Should you buy?

In the circumstance that you are able to find a better than INR 1-1.5 redemption rate on Jet Airways or the partner airlines, yes you should. However, miles should not be bought speculatively so don’t buy miles just to be the cool kid around town talking about miles and points. I recently ran into someone who did indeed buy 10,000 miles to be able to redeem a BOM-DEL award ticket, while he could have just bought a revenue ticket at a much lesser price. However, if you need some more miles to top off an account where you have redemption ideas already, then it is a good idea.

Bottomline

Buying miles is a personal decision depending on your own circumstances. If you do see award availability on certain segments you’d like to travel and award travel makes more sense than revenue tickets, do go for it!

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About Ajay Awtaney

Ajay is a financial services pro, working to bring order to the chaos of the financial industry on an everyday basis! Beyond that, he dons the hat of India's favourite frequent traveller, trying to help people elevate their travel experience via tips and tricks they never knew before, or introduce them to the world of miles and points. Armed with an MBA from MDI Gurgaon and graduate degree in computer science from the University of Delhi, Ajay brings a systematic and objective approach on the table for his audience in dissecting travel and loyalty programs in India and around the world, and how to benefit from them. Ajay has been quoted in various reputed traditional and online media including The Hindustan Times, Inside Flyer, Bloomberg, DNA India, Conde Nast Traveller, The Telegraph, Mumbai Mirror, Mint, MoneyLife and The USA Today.

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Comments

  1. Hi Ajay,
    Have been following your blog for the past few months, and I really enjoy your insightful analysis on travel promotions and credit cards.

    Do you think it makes sense to use one of the co-branded cards (e.g. Amex Jet Platinum card) internationally and accrue miles on spend, given the forex transaction of 5% seems like a steep deterrent? The alternative being using a no-frills forex card.

    Would love to get your thoughts on this.

    Thanks!

  2. I recently read about delta and jet code share agreement. Would it be possible to redeem delta skymiles on a jet domestic flight in india ? Any alternatives to transfer skymiles to jetprivilige ?

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