Maximizing Flight Points: How Israelis Can Assess Their True Value

Israelis accumulate airline points through flights, credit cards, and everyday spending, with major carriers like El Al managing extensive loyalty programs. However, the actual worth of these points varies significantly depending on how they are redeemed, whether for flights, hotels, or upgrades. To determine their value, consumers should calculate the actual cash saved by using points versus the number of points redeemed and the cost incurred to earn them.

For instance, if a flight costs 1,600 shekels and can be purchased with 1,000 points plus a 300 shekel payment, the points effectively saved 1,300 shekels, equating to 1.30 shekels per point. In contrast, if the same 1,000 points only save 300 shekels on a hotel booking, their value drops to 0.30 shekels per point. This highlights the importance of evaluating each redemption as a separate transaction.

The calculation involves taking the cash price, subtracting the amount paid in points, and dividing by the number of points used. For credit card points, the monthly spending, card fees, and potential foreign transaction fees must be considered against the value generated. Points are most valuable when the cash price of a ticket is high and the point redemption cost is moderate, especially during peak travel times or for long-haul flights.

Conversely, during sales when cash prices are significantly lower, it may be more beneficial to save points for another opportunity. Availability is also a crucial factor; a redemption offering a good points-to-cash ratio is less valuable if it doesn't align with the traveler's specific date or destination needs. Hybrid options combining points and cash offer flexibility but still require individual value assessment for each booking.

Loyalty programs themselves undergo changes, such as the recent transition of El Al's FLY CARD to Isracard, necessitating a re-evaluation of earning rates, fees, and benefits. Points are increasingly used for non-flight redemptions, but the core principle remains: assessing the shekel value received per point. The overall benefit is maximized for those who already fly with the airline, consolidate their spending on the associated card, and can redeem points for high-value transactions. However, accumulating points that lead to purchasing more expensive items, incurring high fees, or altering spending habits can diminish their true value.