Converting Esso Extra to Airline Miles
You probably see a lot of advertisement about the Esso Extra program. Lots of hype goes into the Esso Privileges card. However, there is actually a pretty net way of converting your Esso Extra points into airline miles and get more value. It requires a 2 step process though.
Step 1 – Convert to RBC Rewards
You need to convert a minimum of 2,500 Esso Extra points for 1,500 RBC Rewards points. Thereafter, you need to exchang blocks of 500 Esso Extra points for 300 RBC Rewards points.
Step 2 – Convert to Airline Miles
With RBC Reward points, you have the option of converting to:
- American Airlines, AAdvantage
- British Airways, Executive Club, Avios
- Cathay Pacific, Asia Miles
- WestJet, WestJet Rewards, WestJet dollars
Keep in mind that you get even more value when you take advantage of conversion bonuses, as I will explain below.
Worth of Esso Extra Points
I value Esso Extra points at 0.6 cents a piece. I think one of the best Esso Extra redemptions is the Reload of $0.25 per litre for 200 litres (8,200 points). If you want to calculate the value of the Reload card, as well as cents per point, this is how it would work:
- $0.25 x 200 = $50
- If 8,200 points = $50, that would be 8,200 / 50 = 0.6 cents per point
Using this valuation for Esso Extra points, let’s calculate the value when converted to airline miles.
American Airlines, AAdvantage
RBC Rewards converts at a 1:1 ratio to AAdvantage, with a minimum requirement of 5,000 RBC points for 5,000 AAdvantage points. There have been 20% or 30% transfer bonuses, but not since 2013. I value AAdvantage miles at 1.7 cent a piece.
Assuming we do not see any more transfer bonuses, let’s say you convert:
- 8,500 Esso Extra points = 5,100 RBC points = 5,100 AAdvatange miles
- 8,500 Esso Extra points x 0.6 cents would have given you $51 in value.
- 5,100 AAdvantage miles x 1.7 cents would give you $86.70 in value.
This shows that AAdvantage miles are better value than keeping Esso Extra points, closing at 70% more in value.
British Airways, Executive Club, Avios
RBC Rewards converts at a 1:1 ratio to to Executive Club, with a minimum of 10,000 RBC points for 10,000 Avios. We have scene 30% and 50% transfer bonuses. I value Avios points at 1.7 cent a piece. Let’s do both calculations, for 30% and 50%.
Assuming we do not see any more transfer bonuses, let’s say you convert:
- 17,000 Esso Extra points = 10,200 RBC points = 13,260 Avios (on 30% bonus) or 15,300 Avios (on 50% bonus)
- 17,000 Esso Extra points x 0.6 cents would have given you $102 in value.
- 13,260 Avios x 1.7 cents would give you $225.42 in value.
- 15,300 Avios x 1.7 cents would give you $260.10 in value.
It is fairly clear that you get a lot more value with Avios than with Esso Extra. With the 30% conversion bonus you are getting 121% more value. While with the 50% conversion bonus, you are getting 155% more value.
Cathay Pacific, Asia Miles
RBC Rewards converts at a 1:1 ratio to to Asia Miles, with a minimum of 10,000 RBC points for 10,000 Avios. We have scene 20% transfer bonuses. If we value Asia Miles at 1.7 cent a piece, this is how the calculations would look:
- 17,000 Esso Extra points = 10,200 RBC points = 12,240 Asia Miles (on 20% bonus)
- 17,000 Esso Extra points x 0.6 cents would have given you $102 in value.
- 12,240 Asia Miles x 1.7 cents would give you $208.08 in value.
Again, we are getting 104% more value with Asia Miles than Esso Extra points.
WestJet, WestJet Rewards, WestJet dollars
Lastly, RBC Rewards points convert at a 100:1 ratio with WestJet Rewards, with a minimum of 1,000 RBC points for 10 WestJet dollars. We usually see a 25% transfer bonus to WestJet.
- 2,500 Esso Extra = 1,500 RBC points = 18.75 WestJet Dollars
- 2,500 Esso Extra points x 0.6 cents would have given you $15 in value.
This one is a slim margin of 25% more in value when comparing $15 versus $18.75.
Conclusion
I know I keep saying that we can get better value elsewhere with Esso Extra. As a result, Esso Extra is a loyalty program that actually holds a lot of value if leveraged accordingly. As usual, always do the calculations first, before deciding what to do with your miles and points.
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