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Capital One just made some amazing changes to its mileage transfer program. These changes follow positive changes earlier in the year. Here is my updated Capital One mile valuation.
Capital One miles were valued at 1.1 cents per each.
For context, I valued Capital One miles at 1.01 cents per mile in 2021. Although valuing any points currency can be a difficult task, I try to use a consistent method to do so.
Capital One miles earned from cards such as the Capital One Venture Rewards credit card (review), and Capital One Spark Miles for Business(review), could have been redeemed in either of these two ways.
You could redeem them for 1 cent each toward the purchase of travel
These points could be converted to airline miles or hotel point at a ratio up to 2:15.
The above cards offer 2x Venture and Spark miles for every dollar spent. In reality, you could be earning either two cents towards travel or as much as 1.5 airline miles.
How did I come up with the value of 1.1 cents per Capital One Mile?
This valuation explained the relatively high floor value Capital One miles. They can be used at a rate of one cent per mile towards almost any travel purchase.
I then applied some premium to get the flexibility that the airline transfer partners offer.
Other transferable currencies are valued at 1.7 cents each. Capital One has a transfer ratio up to 2:1.5. Capital One's transfer ratio is 1:1. The lower valuation was to reflect the difference in transfer ratio and the fact that there were fewer wealthy transfer partners.
You can redeem Capital One miles towards any type of travel purchase
Capital One miles now worth 1.7 cents per mile
To reflect the recent changes, I raised my Capital One mile valuation to 1.3 cents per each this spring.
Capital One has added four new mileage transfer partners British Airways Executive Club Choice Privileges TAP Portugal Miles&Go and Turkish Airlines Miles&Smiles
Capital One offered 1:1 mileage transfers to nine partners, while others had a 2:1 or 2.1.5 ratio. The 1:1 partners were Aeromexico Club Premier and Avianca LifeMiles. Cathay Pacific Asia Miles was also available. Choice Privileges included Etihad Guest, Finnair Plus. Qantas Frequent Flyer. TAP Air Portugal Miles&Go. Wyndham Rewards.
Transfer Capital One Miles 1:1 to Cathay Pacific
Capital One miles will now be transferred at a 1:1 ratio to 15 transfer partners, according to the latest announcement. This applies to all transfer partners except two, which is a huge development. In particular, Capital One miles can now be transferred at a 1:1 ratio with Air Canada Aeroplan and Air France-KLM Flying Blue.
Because I value Citi, Chase, Amex and Citi points at 1.7c each, I also value Capital One miles at the same 1.7c each.
This is a reflection of my belief that Capital One Miles are just as valuable per point as other currencies, based upon the transfer partners
1:1 transfers are not just for select transfer partners anymore, they are the norm.
Capital One Miles holders will find it much more convenient to transfer your miles to airline partners than to redeem them each for one cent towards travel purchases.
Transfer Capital One Miles 1:1 to Emirates
Capital One cards are worth another glance
Many people in the miles and points community were skeptical about Capital One cards due to the transfer ratio. The Capital One Venture Rewards card and Capital One Spark Miles Business card are great cards for everyday spending.
Each one offers 2x airline miles for every dollar spent. This is a 3.4% return on investment. This is an industry-leading offer. These cards also offer no foreign transaction fees and no bonus caps.
It's amazing to earn 2x airline miles for every dollar you spend
Bottom line
Capital One has improved its mileage transfer program. Capital One introduced airline mileage transfer programs in 2018 and it was a huge success.
This allows you to transfer Capital One miles in a 1:1 ratio with 15 travel partners. This is a great opportunity, especially when you consider that Capital One cards earn 2x miles for every dollar spent.
At this point, I value Amex Membership Rewards and Chase Ultimate Rewards as well as Citi ThankYou and Capital One points equally. While people may have different preferences depending on their travel and redemption habits, I believe all currencies are comparable.
What do you think each Capital One mile is worth?
