Is 30,000 Velocity points for a Business class upgrade from Melbourne to Cairns good value?

I purchased a flight from Melbourne to Cairns for $225. I can upgrade to business for 30,000 points.
Is that a good way to use the points or should I just put in a bid to upgrade and hope for the best.
I suppose using 40,000 points to get a business reward seat would have been best?
Any comments appreciated.

Hi Planscan,

You are correct. I think it works best for me to redeem business outright. I like the guarantee and playing the lottery (hoping for upgrade) for a long flight is not for me. This flight is around 3 hrs so it’s not the end of the world if stuck in couch (prefer not to).

Costs of redeeming business seat outright: 35500pts + $28.08 (surcharge)

Costs of buying business ticket outright:~ $859

Costs you are actually willing to pay for business fare: assumed as $500

Value of point used: ($500-28.08)/35500pts = 1.33c per point

Not very good value personally. But if you use the $859 in the calculation (that is if you are willing to pay for the business class tickets anyway), you get 2.34c per point which is good.

Keith’s value for points

If you are saying 30k points guaranteed an upgrade,

Value of point used: ($500-28.08-225)/30000pts = 0.823c per point

Value of point used: ($859-28.08-225)/30000pts = 2.02c per point

Depending on how much you are willing to pay for the business class tickets, if $859 yes the points are well spent. not if $500.

Unless of course if you don’t have a better way or future plan to use the points, I’d say go for it.

Anything is better than gift cards, toasters, or free BP fuel, in my books. my 2 cents.

Thanks for your reply.

The cost of the business fare outright is $1000.

I have paid $225 for economy so the difference is $775. If I use 30000 points to upgrade then the point value is 2.5c per point.

When using 40000 points to get a business reward seat point value is still 2.5c per point.

I agree that it not good waiting for an upgrade which may not happen but an upgrade bid if successful would mean the business ticket cost would be around $500.

To be guaranteed  an upgrade the 30000 points seems reasonable value.