Guest fountainhall Posted April 14, 2011 Posted April 14, 2011 Coinciding with travelerjim's very useful info on the BA miles offer, there is an excellent article in today's New York Times illustrating how one reporter goes about maximising his miles. It's long and it's a bit difficult to cut it, so I append most of it below, along with all the relevant website details. I used to be a frequent-flier miles skeptic. The rewards system world seemed so overwhelming. Was it worth it to book a more expensive flight to gain miles? And where do I keep my membership number anyway? Do I use a credit card that promises a mile for each dollar spent or the one that gives me 1 percent pure cash back? How about dining in certain restaurants or sending packages by Federal Express just to gain miles? Just thinking about it was enough to give me a headache – though you could argue that’s no big deal, since I could probably gain miles buying aspirin, too. One little incident in February, though, made me change my tune. Facing a $700 domestic flight within Brazil, I called Delta to see if I could somehow use my SkyMiles to make the trip on Gol, its Brazilian partner. Sure, said the customer service agent, for just 20,000 miles. Huge win, but that wasn’t all: she suggested I get those 20,000 miles back by signing up for a SkyMiles AmEx card and making one purchase. I was suspicious. “Is there an annual fee?” I asked. Yes, but the $95 fee would be waived for first year. “What if I cancel as soon as I get the bonus miles?” No problem. And it was true. I got a $700 ticket, essentially free. I realized that by ignoring the miles game, I was missing out some real, money-saving benefits. But I lack the patience or time to become one of these obsessed miles-grubbers who may spend weeks poring through enough fine print to figure out how to earn a first-class ticket to Hong Kong just by renting a compact Chevy from Alamo for one afternoon. There had to be a simple approach. After some research, I came up with one, a system that anybody can use to organize miles. It consists of three steps that take about 30 minutes each. To be safe, let’s call it two hours total. STEP 1: Get Organized Several sites allow you to track your miles. I tested out a few, like UsingMiles.com, and ultimately went with AwardWallet. It is, quite simply, a game changer. It’s a free, uncomplicated Web site that keeps all your mile balances, all your account numbers and all your passwords on one screen. It also lets you know when balances have changed and when miles expire, and stored passwords mean that you can log into your account with any airline’s loyalty program’s site with one click . . . STEP 2: Learn How to Earn Miles You don’t have to board a plane to earn miles. Consider the airlines that you use the most or that you have the most miles on, and familiarize yourself with their various offers. The AwardWallet page allows you to browse around your chosen airline’s loyalty site. For me, that was Delta, where on the Ways to Earn Miles page, I noted I could get twice as many miles for renting from Hertz as I could from other companies, and that you can earn miles for going to Broadway shows or joining Netflix. You might also want to check what airlines are partners with your airline. The Points Guy blog is also a valuable source. Don’t read it straight through – that’s only for obsessed travelers and mile junkies. Instead, click the “Categories” link for your airlines (or click here for American, Continental, Delta, United or US Airways) and browse. The latest credit card offers are there, and plenty of other tidbits — and it cuts through all the fluff to the best deals and important details behind them, freeing you from the marketing sheen you’ll find on the carriers’ Web sites that bury hidden fees and the like . . . STEP 3: Choose a Goal and Use It to Set the Price of a Mile There are all kinds of estimates out there for what a mile is worth to the average consumer or to the airlines. But all that really matters is what a mile is worth to you. Make a good estimate, and the whole rest of the miles world grows amazingly simpler. Here’s how to do it: Pick your ideal flight. It could be a destination you fly to regularly (to visit a close family member, for example) or that you’d love to visit on vacation. Figure out the price of a ticket on the carrier you use the most (or its alliance partners) on dates that work for you. Then figure out how many miles you’d need to take the same flight. But don’t rely on the airlines’ charts, because you can’t always get the flight that you want for the airlines’ lowest rewards level. You need to figure out the cost in miles by actually going through the process of booking an awards flight, stopping one step short of confirming it. (You can do this online, or if that doesn’t work, by calling.) Divide the price of the flight by the number of miles it takes to cover the trip. That’s the value of a mile to you. In my case, for example, an $850 ticket on Delta from New York to São Paulo would cost me 60,000 miles. Including taxes and fees (about $50, not covered by miles), that makes the price of a mile to me 1.33 cents. Why does this matter? Having a reasonable estimate allows you to evaluate deals in a way you couldn’t before. For me that meant that I stopped using my cash-back credit card (which got me 1 cent per dollar spent) and started using my miles card (which gets me 1 mile –1.33 cents — back per dollar spent . . . And it helped me make sense of those dining programs that allow you to gain miles by eating in designated restaurants. You typically get a few miles for every dollar you spend. Is it worth the logistical hassle of signing up and dining at certain restaurants? . . . It turns out that the dining program and those 1,500 miles Netflix miles will help push me over 60,000. Hello, Brazil! As you can see, I’m a skeptic no longer. http://frugaltraveler.blogs.nytimes.com/2011/04/12/are-your-miles-a-mess-heres-how-to-put-them-to-use/?hpw https://www.usingmiles.com/ http://awardwallet.com/ https://www.delta.com/skymiles/ways_to_get_miles/index.jsp http://thepointsguy.com/ The only caveat I'll add is be careful about using credit cards outside the issuing country. Some cards tempt you by offering double miles. But the transaction fee on many cards jumps when used overseas. So the 'price' of the miles can be a lot higher. If you read the extensive blog comments following the article, you'll note that at least one post makes the very valid point that spending miles for economy tickets rarely makes sense. It makes far more sense if you redeem them for a business class ticket or an upgrade. BA Miles charge double for business class. Yet, the actual over-the-counter cost of business class is often 5 or 6 times more. Quote
Guest anonone Posted April 14, 2011 Posted April 14, 2011 Coinciding with travelerjim's very useful info on the BA miles offer, there is an excellent article in today's New York Times illustrating how one reporter goes about maximising his miles. It's long and it's a bit difficult to cut it, so I append most of it below, along with all the relevant website details. http://frugaltraveler.blogs.nytimes.com/2011/04/12/are-your-miles-a-mess-heres-how-to-put-them-to-use/?hpw https://www.usingmiles.com/ http://awardwallet.com/ https://www.delta.com/skymiles/ways_to_get_miles/index.jsp http://thepointsguy.com/ The only caveat I'll add is be careful about using credit cards outside the issuing country. Some cards tempt you by offering double miles. But the transaction fee on many cards jumps when used overseas. So the 'price' of the miles can be a lot higher. If you read the extensive blog comments following the article, you'll note that at least one post makes the very valid point that spending miles for economy tickets rarely makes sense. It makes far more sense if you redeem them for a business class ticket or an upgrade. BA Miles charge double for business class. Yet, the actual over-the-counter cost of business class is often 5 or 6 times more. Playing the Frequent Flier game has certainly helped me visit Thailand much more often then I could have otherwise, and in much more comfort. I would add that high status with an airline is a pretty important piece of the puzzle. It can vary by airline, but higher status usually opens up availability for reward tickets, allows for more frequent or cheaper upgrades on long flights, and you earn more miles when you fly. I have paid a little more on some individual airfares to keep earning miles with my primary airline, but it more than pays for itself in the rewards given for reaching the top tier. For the 20 hour trip to BKK from the US, the difference between cramped in the back of the plane in coach and being able to stretch out and sleep in the front of the plane is huge. I actually arrive in the LOS rested and ready to hit the bars. I agree that for award (paid for with mileage) tickets, international flights in a premium cabin (business class or first class) offer the best value. I do try to keep a substantial bank of miles in the account for use in a pinch for domestic travel when tickets are prohibitively expensive. This happens rarely, and usually on a short notice trip, but has saved me some money. Quote
pong Posted April 14, 2011 Posted April 14, 2011 There is-at least IMHO-one more en decisive big caveat in this game. It is mainly aimed at USAers (or maybe Norte-Americano's). In Europe-and I guess also OZzieland=Australia, where most of Thailands visitors in fact hail from, it works a bit different. Miles expire-pretty soon. You have to fly on that airline at least once a year-on paid flights to maintain. You cannot get an unlimited nr. of credit-cards-in some countries you cannot even get 1. (in case USAers find this incomprehensible-we have loads of other bankcards that fit nicely). That compensation or ''a new airline will take your old status'' is only for very special high-flying bisnis people. I pretty well know, I have some 3 different ones. I advise flyertalk.com as the best forum to get more tips and recommendations apt at your situation. Next thing is-in Europe there are far more of those nofrills airlines, that offer dirt-cheap fares but no miles or even attempt in that direction. Also many of the lower fares to BKK on the major airlines do not even earn miles-or at best maybe 50 or 40 or 25% of the distance. Most conclude that if you are satisfied wit them (think AirAsia and the like) you better forego that miles game at all. Quote
Guest travelerjim Posted April 14, 2011 Posted April 14, 2011 There is-at least IMHO-one more en decisive big caveat in this game. It is mainly aimed at USAers (or maybe Norte-Americano's). In Europe-and I guess also OZzieland=Australia, where most of Thailands visitors in fact hail from, it works a bit different. Miles expire-pretty soon. You have to fly on that airline at least once a year-on paid flights to maintain. You cannot get an unlimited nr. of credit-cards-in some countries you cannot even get 1. (in case USAers find this incomprehensible-we have loads of other bankcards that fit nicely). That compensation or ''a new airline will take your old status'' is only for very special high-flying bisnis people. I pretty well know, I have some 3 different ones. I advise flyertalk.com as the best forum to get more tips and recommendations apt at your situation. Next thing is-in Europe there are far more of those nofrills airlines, that offer dirt-cheap fares but no miles or even attempt in that direction. Also many of the lower fares to BKK on the major airlines do not even earn miles-or at best maybe 50 or 40 or 25% of the distance. Most conclude that if you are satisfied wit them (think AirAsia and the like) you better forego that miles game at all. pong, It USA, to keep your miles from expiring only takes the addition of 1 mile during the time allotted...most are 18 months..but Delta just announced NO EXPIRATION" of your miles. A friend of mine - when he needed a mile - used the airlines MALL on line and purchased a gift card for Home Depot (home improvement store)..$50 and he got 50 miles and that added 18 months to his miles. the important thing to remember..keep track of your miles and any expiration dates.. it is easy to add a mile to your account and NEVER fly on the airline. I currently have 60,500 miles on British Air and NEVER have flown on them. Every two years, I designate them when I rent a car who is partnered with them...adding 500 miles or so to the account. tj Quote
Guest fountainhall Posted April 14, 2011 Posted April 14, 2011 Also many of the lower fares to BKK on the major airlines do not even earn miles-or at best maybe 50 or 40 or 25% of the distance. This is a very good point. Most airlines have a wide range of pricing and price codes in economy class. It's no longer just 'Y' class. Cathay Pacific, the one I know best, uses Y, B, H, K, M, L, V, S, N, Q, O, G and more. Only the first 7 now qualify for miles, and only the first 4 are upgradeable. Three years ago, I used miles to upgrade a round trip BKK/HKG/JFK ticket that cost around Bt. 40,000. (Thanks to a double miles offer, I ended up with half the miles I'd used to upgrade back in the mileage bank!) But I recently checked the cost of the cheapest upgradeable economy ticket for roughly the same period later this year. Now that fare has doubled to over Bt. 80,000! Unfortunately, if you check Cathay's website, it's very difficult to find out the precise detail of your fare code, for the airline only tells you only about 6 types of economy fare - Economy Flex Economy Standard Economy Core Economy Special Economy Save Economy Super Saver All but the Super Saver qualify for Miles. But only when you pay for one of the top 2 can you upgrade the ticket. How that works out when there are 4 upgradeable price codes beats me! The carrier is equally sneaky with business class. There are actually four different business class codes for purchased fares - J, C, D, I. All earn miles and all are upgradeable. Yet, Cathay only offers the first 3 on the website, calling them - Business Flex Business Standard Business Save Why complicate the issue and deny consumers that essential information? Look at the airline's FAQ page and you get an equally vague picture - 13. How can I select a specific fare class code for mileage accrual eligibility or upgradeable with Asia Miles? When you click the 'compare fare types' link, 'mileage accrual' will be shown in Fare Types section. http://www.cathaypacific.com/cpa/en_INTL/faq/ticketpurchase/features That action only tells you what I have outlined above. It does not, you will note, answer the question! I guess this is because they don't want potential purchasers to know about the cheapest tickets on-line! Given that all airlines want more tickets purchased on-line, this seems to me to be quite reprehensible. The only way you can now find out exactly what’s available is either to check on flyertalk.com or go to an agent! Ridiculous! Quote
