As a general rule I hate the idea of buying points directly for cash. Even with the occasional US Airways 100% bonus I’m not completely convinced that it is the right move, at least for me. I’m not entirely sure why (or even if) I’m broken that way, but it just doesn’t seem the same. Still, every now and then a deal comes along which screams out to be at least tried. It seems like today is one of those days.
I see this whole obsession as a game of arbitrage, acquiring the points at a discount and redeeming at a higher value. Sometimes that’s not entirely possible. At least not directly. So when an opportunity to play the game in multiple steps comes along I get even more interested, particularly as the associated challenges make it more fun to me. In today’s example it seems that a two step process can yield rather impressive results.
The Icelandic economy collapsed a couple years ago thanks to unfortunate arbitrage plays so maybe their airline is just trying to catch up on the fun. It seems that they’ve got quite the deal available for redemptions on Alaska Airlines flights. Reading OnlineTravelReview this afternoon I came across the details of this deal. Very interesting, indeed. Not only is the current exchange rate from Icelandic Krona to USD or EUR rather favorable right now to folks not in Iceland (arbitrage #1), but the redemption rates of Saga Club points on their partner Alaska Airlines is also quite favorable (arbitrage #2). A glorious deal in the making.
The gist of it is that 30,000 Saga Club points is enough for a first class return ticket on Alaska Airlines metal. Anywhere they fly. And from now until September 28th you can purchase points in the Saga Club program and get a 20% bonus. The cost to purchase 25,000 points – netting 30,000 with the 20% bonus – is only about USD $328. That’s a tremendous bargain. Assuming availability (I’m a bit less inclined to book from the East coast because of that) a trip to Hawaii in first class is going to run you roughly $370. That’s not bad at all.