When booking flights with points and miles, there’s a question that comes up all the time: Would you rather use fewer miles and pay higher taxes and fees, or spend more miles and keep your out-of-pocket costs low? There isn’t a single right answer. The best choice depends on your travel goals, how easy it is for you to earn more points, and how much cash you want to spend.

Recently, I faced this exact dilemma. I had booked a flight to London for 57,500 American Airlines miles plus about $700 in taxes and fees. Later, I found another option that cost 112,500 American Airlines miles and just $5.60 in taxes and fees. I made the switch.

Was it the best mathematical value? Probably not. I spent an additional 55,000 miles to save nearly $700. Some points-and-miles enthusiasts would gladly pay cash and keep the miles. Others would rather use more miles and avoid a large out-of-pocket expense.

My Dilemma

My original business class flight to LHR had an eight-hour layover in Chicago. That sounded painful, so I booked a Hilton day pass for $200 so I’d have a place to go until my flight. Now I was paying an additional $200. Additionally, that flight left Denver at 7:00 am, an additional ouch! I booked an airport hotel with points, and it all sounded fine until I got closer to the departure date. And suddenly it sounded horrible.

That’s the beauty of points and miles. I could cancel my flight and get miles back immediately if I found a good flight.  I found a flight from Denver to LHR with a four-hour connection in LAX, departing around noon. Much better. It was also a longer flight over the ocean, giving me time to eat and get plenty of sleep. The taxes and fees were a mere $5.60, but it was 112.5K AAdvantage miles. 

I have 400K AAdvantage miles, so it was an easy call. A better departure time, shorter connection, about $800 credited back with taxes and fees, and the Hilton hotel.  For me, this made me look forward to the flight rather than dread it.

This was going to be my seat no matter what but I decided to pay more miles for a flight that worked better for me.

What Would YOU Have Done?

This question is very personal. For some travelers, miles feel easier to replace than cash. Credit card welcome offers, everyday spending, and transfer bonuses can help replenish points balances. Cash, once spent, is gone. For others, preserving miles is the priority. Maybe they’re saving for a dream trip, traveling frequently, or simply want to stretch their points as far as possible. In that case, paying higher taxes and fees may be the better choice.

At Points Talk Squad, we often remind people that the “best” redemption isn’t always the one with the highest cents-per-point value. Sometimes the best redemption is the one that lets you take the trip you want while staying within the amount of cash you’re comfortable spending.

Bottom Line

I’ve often done just the opposite of what I did this time. Sometimes, I’m willing to pay more in taxes and fees for a cheaper redemption. But I need to not hate the thought of the travel day, too.

So what would you choose? Would you rather pay fewer miles and more in taxes and fees, or more miles and almost no taxes and fees? We’d love to hear how you think about this tradeoff.