melvinsalas

I don’t want miles anymore

One of my most popular posts is about the value of Revolut points and how I make the most of them by buying Amazon gift cards. It got me thinking that its popularity comes from the fact that people don’t really understand their value and are looking for clarity in the confusing world of miles.

Dublin Airport Dublin Airport (2024)

To begin with, the name itself comes from a unit of distance mostly used in the United States. But since distances in aviation are measured in miles, I’ll let that slide. Normally, when you look up how much a mile is worth in real money, the commonly accepted answer is roughly 1 mile = €0.01*, and that’s where the story usually ends.

But that asterisk is doing a lot of work:

At the end of the day, all you know is that you’re accumulating something, without knowing if it’s a lot, a little, or even a real discount. Sometimes they’ll even sell you a more expensive ticket if you pay partially with those famous miles.

And it’s not just airlines. There’s a coffee shop that gives you a stamp card you’re supposed to bring every time you buy something, and after 10 purchases you get a free coffee. I’ve never managed to redeem one. I always lose them. There are thousands of examples like this, all slightly different but equally messy.

I Want Cashback

In a world where the value of miles or points doesn’t follow mathematical rules but instead business strategies and dark patterns, there is a system that brings some clarity for those of us who tend to overthink things: cashback.

20 pounds 20 pounds (2023)

The supermarket I go to doesn’t give points, it gives euros. Every discounted purchase adds real money to a balance, and whenever I want, I can use that amount as a discount on a future purchase. That feels like one of the most honest systems I’ve seen. You slowly build up savings, and before you know it, you’ve got a free purchase.

Ideally, loyalty cards would just apply the discount automatically at checkout. But I understand that customers would stop noticing the value, and there are business strategies behind that. Still, there’s a big difference between that and making things more complicated than the plot of Dark.