Travel Rewards compared: Aeroplan, TD, Cash-back

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I just booked 2 different itineraries using Aeroplan and had to do the double miles to get any flights.  I don't think there's any Aeroplan flights available for "classic" other than a 4 am flight from Kelowna to Penticton.  Which means it's time for the regular comparison between some rewards systems.

Aeroplan

I booked 4 tickets Vancouver to London Ontario for 200,000 pts + $600 in fees and 1 ticket Vancouver to SFO 40,000 pts + $115 in fees.   Aeroplan does roughly 1 pt per $1 spent. 

Buying the tickets to London would have been $3300 all-in, and ticket to SFO was $800.  Obviously the flight costs change over time and are route dependent.  The flight to SFO with less than 1 week to go is now over $1000, but the same flights in 3 weeks is $580.  Also, I would have gotten status miles towards next years aeroplan card and I could have used an upgrade.

TD Visa

You get 3 pts per 1$ spent, and it takes 200 pts to buy $1 of travel.  $3300 for London would have been $220,000 (3300 * 200 / 3) on Visa, and $800 for SF would have been $53,333 on Visa. 

Dividend Card

A typical divident card offers a 2% dividend on purchases.  $3300 for London would require $165,000 to be spent.  $800 for SF would require $40,000 spent.  Now I'm not sure if they have a maximum dividend per year. 

Results

For London travel, the CIBC card ($200K card purchases + $600) seems to be underperforming the TD card by about 25% ( $220K card purchases) and about 33% for the Dividend card ($165K card purchases).  The TD and Dividend card also have the benefit that you buy cheap tickets as well.   

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This page contains a single entry by Dave Orchard published on June 12, 2008 7:38 PM.

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