Wednesday, July 14, 2021

A look at how you can extract enormous value out of the best ever welcome bonuses on American Express Aeroplan cards


Back in June American Express and Aeroplan revealed the best ever welcome bonuses on their co-brand cards. With offers ranging from 75,000 to 150,000 points these unprecedented new bonuses scream huge value thanks to the Aeroplan program being able to provide outsized value on award flight redemptions. In this post will show you just a couple examples of that huge value from the three American Express cards that have these big time new bonuses. Do note that you only have until August 3 to apply for one or more of these cards to score these big bonuses. Now, let's see how you can get $1,170 to nearly $6,000 in value from these card's welcome offers.

Below we provide two examples on the value that can be had from the welcome bonuses on the American Express® Aeroplan®* Card, American Express® Aeroplan®* Reserve Card and American Express® Aeroplan®* Business Reserve Card. For the sake of keeping this an easy read we decided to limit it to just these two as we could literally provide dozens of examples by looking at flights to Europe, Asia and anywhere else in the world. However, most Canadians are keeping their travels at home - at least for 2021 so these examples look at the value for travelling domestically.

Please note that all Aeroplan points amounts in this post are shown at the standard redemption rate. Once you have an Aeroplan co-brand payment card and/or hold elite status the actual amount of points will be discounted and you'll have further value out of your points!

Economy Class

Let's look at week long trip for four people from Vancouver to Toronto in October 2021:
 

Grand total is 58,800 points + $300.44 - that's well within the 75,000 points you can earn on the American Express® Aeroplan®* Card or the 150,000 seen on the American Express® Aeroplan®* Reserve Card and American Express® Aeroplan®* Business Reserve Card
 
Actual cash outlay if you were to buy the tickets outright:
 

 
You would be looking at spending $1316.84 to buy the same four tickets so those 58,800 points save you $1016.40. That means you are receiving a value of of 1.72 cents per point redeemed which is higher than our minimum valuation of 1.5 cents per points for Aeroplan points. So what does that mean in terms of potential value from the current welcome offers on these cards?
 
$1,170 in value
Take the 75,000 Aeroplan points bonus with the  American Express® Aeroplan®* Card and multiply it by 0.0172 and you have an overall value of $1,290 just from this one sign up bonus! Of course, we like to look at the true value so we would subtract the $120 annual fee from that and end up with $1,170!
 
$1,981 in value
Both of these cards have welcome bonuses of up to 150,000 points. If we take the 1.72 cents multiplied by 150,000 you have $2,580 in value, however these cards do carry a $599 annual fee so your true value is $1,981

Those are huge values and are only for Economy Class - just wait until you see Business Class! Remember as well we are using redemption rates for someone who does not hold an Aeroplan credit card - just by having the card you'll be redeeming less points so that valuation of the welcome bonus goes even higher!
 

Business Class

Here we look at getting one round trip ticket on a Boeing 787-9 with lie flat business class seats between Calgary and Toronto in December. Both the outbound and inbound flights are operated with the internationally configured Dreamliner:
 
 
Grand total is 54,000 points + $85.61 - that's well within the 75,000 points you can earn on the American Express Aeroplan card with its current offer.
 
Actual cash outlay if you were to buy the tickets outright:
 

You would be looking at spending $2435.51 to buy the same ticket. That means the 54,000 points saves you $2349.90 That means you are receiving a value of of 4.35 cents per point redeemed which is WAY higher than our minimum valuation of 1.5 cents per points for Aeroplan points. So what does that mean in terms of potential value from the current welcome offers on these cards?
 
 $3,142 in value
Take the 75,000 Aeroplan points bonus with the  American Express® Aeroplan®* Card and multiply it by 0.0435 and you have an overall value of $3,262.50 just from this one sign up bonus! Of course, we like to look at the true value so we would subtract the $120 annual fee from that and end up with $3,142.50!
 
$5,926 in value
Both of these cards have welcome bonuses of up to 150,000 points. If we take the 4.35 cents multiplied by 150,000 you have $6,525 in value, however these cards do carry a $599 annual fee so your true value is $5,926!
 
That right there shows you how frequent flyer programs and their associated co-brand cards can provide unbelievable outsized value from their welcome bonuses and earn rates on spending. I mean really - what cards out there can even come close to that? Well, in reality there are a couple - I'm thinking TD and CIBC Aeroplan cards with buddy passes but other than that there aren't any comparisons.

Wrapping it up

Up until late June we had never seen such big bonuses on Aeroplan co-brand cards let alone any cards in Canada and I think this post speaks for itself in the value that can be had from them. I don't need to rehash it all here in the conclusion, just remember you only have until August 3, 2021 to apply for these cards to get in on these valuable bonus offers!
 

Here are the most current details on these three cards:



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