For years I have been writing about frequent flier programs and was wondering how long it would take the airline industry to realize, and attempt to tame, the monster they created. American Airlines started their frequent flier program 25 years ago to attract loyal customers. The concept was simple, the more you flew on American Airlines, the more rewards you earned. Not to be left behind, other airlines created their own mileage programs. Then came the partnership programs, the alliances, hotel programs, car programs and the greatest earner of all--credit card programs. According to an article in Conde Nast Traveler (June 2008,) at the start of 2007 there were 180 million members of frequent- flier programs worldwide sitting on almost 10 trillion unused miles. To grasp that thought, “that’s more miles than there are stars in the Milky Way (about 100 million,) people on earth (6 billion) or U.S. pennies in circulation (8.23 billion in 2007.)” And you wonder why you have a hard time redeeming miles!!!
In the survey taken by Conde Nast Traveler, I was not at all surprised to learn that 70 percent of readers use their miles for free tickets as opposed to 27 percent that use them for upgrades. Based on airline ticket prices, which for business or first class can be more than 10 times the cost of an economy ticket—you get a better per-mile value by upgrading than by redeeming miles for a ticket, particularly on a long-haul flight. That may be true, but for those travelers that don’t fly frequently and get their miles through credit card purchases, a free ticket is far more important.
Only those clients that take multiple vacations to far off corners of the world realize the significance of saving miles to be able to upgrade to business or first class. They know the cost of business class tickets and they try their best not to pay it!! Beware that mileage programs are constantly changing. When I first started saving my miles for my Australian trip it was 100,000 miles for a “free” business class ticket on Qantas (using my American miles.) When I finally redeemed my miles it was 120,000, and I still couldn’t get business class on my return flight!
So, if I’m serious about using miles for either a free ticket or to upgrade to either business or first class, how do I compete with the other 180 million members of frequent flier programs? Following some simple rules won’t guarantee you a free ticket, but it will put you on the right track and increase your chances of being able to use your miles to your advantage.
---Focus on one mileage program. Figure out which airline you fly the most and try to stay with that airline. And check out the airline partnerships. Almost every airline is now part of an alliance: American Airlines is partners with Qantas, Alaska, British Air, El Al, Air Tahiti, etc. which means you can redeem miles on any of these airlines as long as they are in the alliance. Also, most airlines today issue credit cards that give you miles for dollars spent. Use your card for all your purchases: groceries, gasoline, the cleaners, restaurants, etc. You’ll be surprised how fast you can accumulate miles. I’m not suggesting you use your card indiscriminately. Make the same purchases you would normally and pay off your credit card at the end of each billing cycle. Also, know which partners will give you mileage credit. Which hotel and car rental companies are affiliated with your mileage program.
---Book early. On most airlines you can book your flight 331 days in advance. That’s how far in advance airline schedules are loaded into the computer system. I realize most people don’t plan their life 11 months in advance, but if you want to use your miles to popular destinations, you have to start planning ahead. Remember, frequent flier seats are very capacity controlled--you’re not the only one wanting to go to Hong Kong for Chinese New Year or to the Caribbean during Spring break.
---Be flexible. If you can’t get the exact dates you want, try other dates. Avoid weekend travel. It really is easier to redeem miles for flights in the middle of the week. Also, consider traveling in off-peak times. London may be cold in March, but there are no crowds and the Crown Jewels are indoors and will look the same.
---Don’t waste your miles. Look at the price of a ticket before using your miles. Though I’ve never seen the exact figures, I know the airlines equate dollars to miles when they set the number of miles needed to redeem a ticket. According to the article in Conde Nast Traveler, experts put the average value of a mile at about 1.2 cents. (It may be higher today since fuel prices are up!) If we use these figures, then to use 25,000 miles for a ticket that costs $250.00 doesn’t make a lot of sense. On the other hand, by redeeming 120,000 miles for a business class ticket that cost $6,000 is an excellent value. You just bought a $6000 seat for $1,440.
Most airline mileage programs now enable you to buy miles at an inflated price. Unless it’s really worthwhile, i.e. the $6,000 business class seat for $1,445 I don’t think it’s a good idea. Also, most mileage programs also have a gifting option--maybe your wife or son has miles in their accounts that can be gifted to you. The number of miles you can buy or gift is limited--check with your mileage program.
Remember, frequent-flier program rules keep changing. So keep track of the ones you join so that you can make the most of your miles. Two sites that can help: FrequentFlier.com and InsideFlyer.com. Also, if you absolutely cannot get any flights using your miles, think about using them for a hotel room or car rental for the week. If you’re going to have to pay for those services anyway, you might as well try to cut down costs and use your airline miles.
Good luck and happy traveling.
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