Understanding the Real Value of Your Flight Points

Many Israelis accumulate flight points through loyalty programs, credit cards, and everyday spending, but the number of points alone is not the full story. The crucial question is how much money they actually save. The calculation is straightforward: determine the cash cost of a purchase, subtract the remaining amount after using points, and divide the difference by the number of points redeemed. For instance, if a flight ticket costs 1,600 shekels and can be purchased with 1,000 points plus 300 shekels, the points have saved 1,300 shekels, making each point worth 1.30 shekels. However, if those same 1,000 points only save 300 shekels on a hotel booking, their value drops to 0.30 shekels per point. Therefore, each redemption should be evaluated individually, rather than relying on a general assumption that points are valuable.

Points are particularly beneficial when the cash price of a ticket is high, but the point redemption cost remains reasonable, such as during holidays, on long-haul flights, or for popular travel dates. Conversely, during sale periods when ticket prices are low, it might be wiser to save points for a better opportunity. The cost of accumulating points is also important. Holders of dedicated credit cards, like the FLY CARD, should examine card fees, the accumulation rate, foreign currency transaction fees, and whether they are truly getting high value for their points.

Ultimately, the key is not the quantity of points accumulated, but the shekel value received for each point. Points offer the best value for individuals who actually fly, consolidate their spending on a suitable card, and redeem points for transactions where the conversion rate is genuinely high.