Get the Most Mileage from Frequent Flier Rewards
Four years ago, I became a member of a frequent flier program. I’d just returned from my first trip to Europe, and I had been bitten by the travel bug. My former boss insisted that I sign up — she goes on great vacations every year and always uses miles to pay for her flights.
Flash forward to the beginning of this summer, when I redeemed my miles for three tickets to Europe which cost about $120 each, including processing fees as well as the annual fee on my rewards credit card for the last few years (the card is tied to the airline program and awards points with every purchase made on the card). It’s a great deal to be sure, considering that we paid about $1,250 for a ticket the last time we hopped across the pond. This was long before I knew anything about smaller booking sites and how to find cheaper flights.
Some turbulence
Redeeming miles wasn’t a piece of cake. In fact, we ended up booking part of the trip through another airline because the available flights that started in our hometown and ended at our desired destination were just plain nuts. Four connections, long delays, and a jaunt from LaGuardia to JFK, and I don’t mean a connecting flight between the two airports, I mean we would have had to arrange to get ourselves from one airport to another to catch the next flight. Um, no thank you. An almost-free flight isn’t worth that much hassle.
Instead, I used miles to book our flights from JFK to Europe, and booked separate flights with another airline to get us to and from New York. In total, the cost of getting to and from Europe cost $400 per person. Not free by any means, but still a good deal.
Your mileage will vary
I’m not an expert at travel hacking by any stretch of the imagination. This was my first experience redeeming miles, but all in all it wasn’t that difficult and I’m satisfied that it’s worthwhile. But not all airlines are the same when it comes to frequent flier programs.
The Wall Street Journal reported that although it’s easier to redeem miles this year compared with last year, some airlines are “stinger” than others. Consulting firm IdeaWorks made 6,720 requests for a standard-mileage ticket at 24 airline websites to determine success rates of scoring rewards sets. Here’s how some of the U.S. carriers ranked:
- Southwest Airlines Co., 99.3%
- JetBlue Airways, 79.3%
- United, 71.4%
- Continental, 71.4%
- Alaska, 64.3%
- American, 62.9%
- Delta, 27.1%
- US Airways, 25.7%
International carriers had several standouts, with one filling 100% of requests. Top rankings went to the following airlines:
- GOL of Brazil, 100%
- Air Berlin, 96.4%
- Virgin Australia, 91.4%
- Singapore, 90.7%
- Lufthansa, 85%
- Air Canada, 82.1%
It’s not hard to understand why an airline would limit reward seats. With rising fuel costs, it’s much more profitable to sell a ticket than to book a reward flight.
Nevertheless, carriers also know that if reward seat restrictions are too tight, they can lose money. According to the WSJ article: “Miles bring in billions of dollars in revenue for airlines when they sell them to credit-card companies that offer loyalty rewards, and carriers have acknowledged they need to loosen restrictions on seat availability or risk losing customers.”
It’s a surprising-yet-good sign that overall, 68.6% of queries made by IdeaWorks found available seats, up slightly from 66.1% in 2010.
Maximizing your miles
It seems that airlines are working to find a balance between paid and reward tickets, but there also are ways that consumers can up their odds of cashing in miles for tickets to their chosen destination. Consider the following tips:
- Book early. Sigh. This is one place I went wrong. I started looking at reward tickets several months before I actually redeemed my miles. Even though I booked four months ahead, there were definitely less seats than when I first started looking for tickets.
- The more flexible your dates and cities, the better. I couldn’t find reward tickets to fly into Madrid and out of Rome, so instead we’re flying into Rome and out of Barcelona. We’ll hit Madrid in between. You’ll greatly improve your chances of booking if you don’t have a rigid plan.
- For greater protection of amassed miles, collect miles for a major airline. Consumer Reports says, “If it files for bankruptcy, its frequent-flier program will probably be bought by another airline. Members of a smaller airline’s program could be stranded…”
- For better seat availability, go with low-fare carriers. According to the WSJ article, low-fare airlines have smaller credit-card tie-ins, meaning members can’t amass tens of thousands of miles without ever stepping on board a plane; and the programs are younger with shorter expiration dates, which means less miles accrued per customer. The miles are harder to earn (and keep), meaning more award seats are available.
- Collect nonspecific miles. Rather than putting all of your miles in American Airlines’ basket, you can get a rewards card that offers miles on the airline of your choice, allowing you to shop around for flights. I picked up this tip from Ramit Sethi of I Will Teach You To Be Rich, who wrote about his card of choice: “I prefer a general travel card instead of an airline-specific card…I want a travel card that I can redeem on multiple airlines, not just one.” He also adds that you should be “merciless” about using your credit card perks, otherwise the card isn’t worthwhile.
As I said, I’m no expert. I’m still learning, which is why I’m taking a travel hacking class from Chris Guillebeau this week. (No, I don’t get paid to promote that webinar, and yes, I paid $29 like all other attendees!) I’d love to hear about any resources you’d recommend in the comments, as well as your experiences with airline miles. Do you use them, and if not, why not?
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There are 40 comments to "Get the Most Mileage from Frequent Flier Rewards".
Gotta love Southwest! My wife has an aversion to flying, so we choose to focus more on hotel rewards points, but the philosophy is the same.
When I was in college a few of my friends and I were involved in church mission trips. We would all take two week trips each summer, and sometimes over Christmas, for missions projects. We always needed a credit card to purchase these flights. I asked my parents to open a card and add me as an authorized user, so I could begin racking up miles and rewards. I did this, and before long, I had established a high enough credit limit, that I was able to buy my friends flights also (and they would reimburse me). I soon was actually able to earn enough point and miles to pay for my future flights solely from my miles card. I solved a problem, and was able to score some serious miles rewards.
Ooo…I love Southwest miles too! I don’t fly but a few times a year, but I’m still able to rack up the miles with all their partners (hotel/car rental, etc.).
April, most of the points towards maximizing miles are same as minimizing airline ticket cost!
Still a nice article and a lot to know. Lets hope airlines waive remaining restrictions for using miles
We don’t fly much because we have 3 kids and it just gets pretty expensive. However, my husband has been accumulating points for business, and we hope to use some of them for flights this summer when we take a trip to celebrate my oldest son’s graduation.
However, I do have a Capital One card that you can apply the points towards rewards. I don’t buy using miles though. The miles convert to cash for use toward buying tickets, and I just ‘bought’ 3 tickets for Florida over Christmas break (had to pay for 2 of them).
I am certainly no expert and can’t dispense any great advice other than to sign up for the programs and you just never know what might accumulate as you go through life.
I just did some research and wrote a blog post on travel hacking myself and found that it’s pretty much a “hack” to us frugal folk. Unless you are a frequent traveler who buys airline tickets, rents cars, stays in hotels, and goes out on the town regularly, you’re better off just using a rewards credit card and hope to Zeus you are able to redeem those rewards someday!
April – the travel hacking class is sold out 🙁
I would attend this class if it is a webinar format. How do I get on the mailing list?
I love this post 🙂 I try to get as many free flights as possible with some combination of credit card points and airline miles.
Credit Card Points:
-I flew AZ to PA for a whopping total of $12 RT this past May.
-My husband and I flew PA to FL in July for a whole $20 RT because of two free flights from opening the Southwest Rapid Rewards credit card (that was it, just opening it!)
Airline Points/Miles:
-I have almost enough points on Southwest to take the trip I have planned from PA to Boston this fall
-I have almost enough points on United to get a free RT anywhere in the US
-I have enough points on Delta for a one way trip, but can’t seem to get enough for a round trip because their regular flights are so expensive
I love free stuff! Now that we’ve moved closer to family and don’t have to use free flights to visit them, I’m planning to save up for more international travel.
It’s gross that a frequent flyer credit card advertisement appears at the bottom of this article, JD. I thought you had said that you weren’t going to do that?
Anyone who pays any money for a hacking class is silly and being un-frugal
There are MANY sites on the Internet that provide that information (like flyertalk) and more, for free. Chris just gets his info from there and sells it to you. A huge rip off imo
I understand about already being frugal and not wanting to spend thousands to save hundreds. I have been on a rampage with our finances and in 3 years have gotten rid of 65,000 of debt and have only a small student loan remaining.
However *I myself* am a subscriber to said website (gasp, i know!!). In the last two months, I have earned and REDEEMED enough points for two round trip flights to Los Angeles – without spending a dime over the 30 dollars I spent on the subscription. Since hub’s family are in Los Angeles, we usually spend about 1500 a year flying out around various holidays (not much time off = not much flexibility in dates).
Sorry it doesn’t work for you to hack, but I am very satisfied with the new rewards cards I have which require notihng other than my usual spending for BIG travel rewards.
You are missing my point. It does pay for me to “hack” – and I do. I’ve accumulated over 300k miles this year alone.
My point is that you are wasting your money paying for advice that is available for free on flyertalk and milepoint, or on blogs like millionmilesecrets and thepointsguy. His site is just a rehash of information out there for free
I just cancelled my account with Chris’ TravelHacking.org. The info is free on ThePointsGuy, FrugalTravelGuy, View from the Wing, and a bunch of other sites.
Thanks for the heads up 🙂
I’m with American Airlines- because it is the only one out of my town….
I might as well be walking for their availability of seats!
I’ve been very pleased with the points program on my USAA card. Points can be used on any airline, and if the combination you want isn’t available, you can convert the points to cash to apply towards the flight you want. You get less “value” out of the points that way, but it increases flexibility.
These are some great tips, April. I would, however, be interested in the best combination of credit card/flier program for people who don’t travel enough to really rack up the points. As a financial manager, we travel a lot locally, but very rarely need to get on a plane. What kind of things can I do to get those free flights?
I’d like to second this. I travel maybe twice a year by plane (for pleasure — I don’t travel for business). I would however travel more frequently if I could get a free flight now and then. What’s the best way for me to rack up points for free flights?
Where do you live? In Canada, the best is probably CIBC Aerogold.
Actually, let me refine my answer.
Without knowing the specifics of your travel patterns and location, it’s difficult to tell.
Where do you plan to travel?
If you plan to travel on routes that generally fairly inexpensive, then using a card that gets you a certain number of $ credits is useful. For example, you can trade 20,000 points for a 200$ credit. If you plan to fly to far-flung locations, or to locations that are close by but expensive (usually small and/or remote airports), then you want a card that gives you a flat rate per zone. For example, everything within zone 1 is 15,000 points, everything within zone 2 is 20,000 points, etc.
Where are you based?
There are obviously different options available in different countries, but it will also depend on your location. A Westjet-branded card may be better for you if you live in Western Canada, but provide less options out east. Depending on which city you live in, and which (if any) airlines hub out of that city, you may want to sign on to their card.
Do you always want free flights?
Consider your travel habits. Maybe free hotel rooms would be more your style, in which case you want a card with more flexibility built into it. Some can be used directly for hotel rooms, others allow you to buy a gift card. Others (like US Airways) have very limited non-flight options.
Here in Canada I use Aeroplan.
If you look closely at the options you can really make your miles go a long way. You can have open jaw trips and free stopovers. Getting to know zones is another key tip.
Example: a rewards flight from Toronto to Calgary is the same # of points as Toronto to Hawaii.
flyertalk is a great resource for learning more!
We also use Aeroplan (Air Canada). My husband flies about 20 times a year for work which earns miles by flying (the old fashioned way to earn them).
By far our larger source of miles is by earning them with our credit cards. For his work travel he has a company AMEX. We pay $100/yr to add on a feature so that every dollar spent on business hotels/meals/rental cars, conference fees etc can be converted into miles for our Aeroplan card.
Our personal VISA card is an Aeroplan VISA. It earns 1 mile for every dollar spent, and 1.5 for gas, grocery and drug stores. We run EVERYTHING through that card for the mileage and pay it off weekly. No interest ever but plenty of miles. The only things I can’t charge to the VISA are the mortgage, property taxes and electric bill. I’d be a really happy camper if I could earn miles on those big bills.
The key to this is that everything we do for business or personal accumulates in one airline’s program, so we don’t wind up with a small unusable balance in several places. The summer of 2011 our family of 4 flew to New Orleans for a week and then to San Francisco for another week. This summer we all flew to Denmark for a Baltic cruise (paid of course with the VISA, and then paid off an hour later). In addition to actual flying or earning miles with our credit cards, many businesses honor Aeroplan, allowing you to earn miles regardless of your method of payment. When I gas up the car I swipe my Aeroplan card, then my Aeroplan Visa. If you get in the habit it doesn’t take long to wrack up the miles. By Christmas I expect we’ll have enough for our 2013 summer holiday. I’ve started reviewing possible locations in Europe and tested the availablility of 4 tickets to various locations and at this point there is plenty of availability, we just need to earn the rest of the points. By the time we earn miles paying our son’s second term college tuition and put snow tires on my car (plus the normal gas, groceries and monthly bills) we should be able to book within 8 weeks.
FYI to other Canadians, you can’t use your Aeroplan VISA at a Tim Horton’s (coffee shop for non Candians) but you can set it up online that your Tim card will automatically reload from your Aeroplan VISA when the balance drops below an amount you choose).
When selecting an airline frequent flier credit card, you should consider where you plan to fly. I like United because they partner with Sar Alliance. That alliance gives me access to some of the best international airlines.
And when you travel with international planes you can still have those points with an American airline that gives you better travel perks. For example…when I travel on wonderful Air New Zealand, I put my points on my United Airlines milage points plan. ( They are both members of the Star Alliance.) When I travel with Air Pacific I put the points on my Quantas points plan.
My travel on paid flight (and revenue hotel stays) is few and far between. My wife and I *live* off of credit card rewards. In the last year or so, my wife and I have accumulated the following, mostly off of credit card sign-up bonuses:
103,000 UA/CO miles (almost enough for two round-trip tickets to Europe)
53,000 Chase Sapphire points (can be transferred to some airlines and hotels, but at a minimum worth $500 cash)
220,000 AA points (almost enough for two business class tickets to SE Asia)
210,000 Capital One points ($2,100 credit toward travel spend)
103,000 BA miles
120,000 AmEx Membership rewards points (can be transferred to other airlines; BA recently had a 50% transfer bonus that I took advantage of)
50,000 SPG points
Planned trips:
Free coach tickets to Europe for Oktoberfest in 2012. Free hotel room on the Oktoberfest grounds (would otherwise cost $500 USD per night) Free or reasonably priced hotel in Paris. Likely free hotel in Amsterdam.
After that, with that stash of BA points, my wife and I are looking at flying to SE Asia in F from JFK. We’ll spend some time in Thailand and Bali; places we have been before.
After that, I’m accumulating enough AA miles for a distance-based one-world award. This will allow us to fly up to 16 segments in J, with a maximum total mileage of 25,000 air miles. We plan on visiting Hong Kong, Malaysian Borneo, Bombay, Delhi, and Kathmandu.
For those who think credit cards are evil, avoid them at your own peril. These are opening opportunities that far surpass anything I thought possible when we took our “once in a life time” 1st anniversary trip to Thailand last year.
It sounds like Dan needs to write a follow-up guest post? How are you getting all those miles?
Credit card sign-up bonuses and referrals. It looks like I’ve acquired 10 new credit cards this year.
I should add: I can’t run a guest post. If I did, it would spoil everything in Chris G’s arsenal, and you guys wouldn’t pay for it.
I say this tongue-in-cheek; as long as I don’t violate any copyright laws, JD shouldn’t have any issues helping you guys be a bit more frugal. Since I’ve never read any of Chris G’s work, that shouldn’t be an issue.
JD, if you want me to run a guest post, just say so in the comments and I’ll work one up for you.
Unfortunately, I can also run a spoiler: Keep your credit score up, keep your eyes open (read a handful of blogs) and be ready to act.
Sometimes I feel like I’m the only one around these parts that doesn’t want to be like Chris Guillebeau, jet-setting around the world and paying for it by telling other people how awesome I am for doing it. I am just not interested in paying Chris to take a “how to be like Chris” class.
I know he is J.D.’s friend, and he’s probably a good guy, but the main product he sells is his own image. This is the same thing I don’t like about Tim Ferriss — He’s sold a million book that purport to teach you to “join the new rich”, but how many new members of the “new rich” has that generated? Fifty maybe? Would you take guitar lessons if you only had a 0.0005% chance of learning to play? These guys sell the promise that everyone can be like them, but as it turns out, it’s not true, they’re mostly just capitalizing on other people’s dissatisfaction with their own lives. If they were really teachers instead of biographical storytellers they’d have much higher success rates with their students.
Sorry, that’s an aside. I don’t bother with frequent flier miles because they seem like too much hassle.
Tyler, I feel like you do about those guys.
I USED to feel like you do about mileage plans, until I got pointed to a couple of high-mileage bonus plans (75k awarded after charging x in y months). They’re a bit of a hassle and can lead to overspending, however they can pay off in pretty fun adventures. I think they are worth the hassle but I don’t think I’m going to pursue them forever – it can get a bit all-consuming, and quickly.
Tyler,
I happen to agree with you about Chris. He’s not doing anything that one can’t figure out on their own. If it were just about FlyerTalk, I’d pay somebody to separate the wheat from the chaff for me. I don’t have time to dig through the various forums. However, there are 3-4 free good bloggers that are worth reading on a daily basis — takes 5 minutes combined. I won’t pay somebody very much to save that kind of time.
OTOH, the miles are real. The sign-up bonuses above are worth $2500 in cold hard cash (Capital 1 + Chase Sapphire). The AmEx is worth a minimum of $1200 in gift cards. 50,000 SPG points are worth 5 nights in a decent hotel in most parts of the world. SPG actually has really good availability, so I can count on those points. 200k AA points are worth 4 domestic rule buster tickets (no capacity controls). 100k UA/CO points are worth about 2 rule buster tickets.
And these valuations are on the low end, without even *trying* to maximize any value. I’m not sure why you think these guys are making money off of other people living vicariously through them. I’ve not paid any information provider a dime, and I’ve had plenty of success. All you need to win at this game is a decent credit score and the ability to meet minimum spend requirements on a credit card (which are typically around $1000/mo for X months).
The awards and benefits are real. But I don’t make any money selling information or credit card referrals, so I have no vested interest in trying to get in on the game. In fact, I would prefer you wouldn’t, because it’s potentially fewer miles chasing the seats that I might want. The less competition, the better 🙂
The most successful travel hackers view it as a hobby — they find collecting and spending miles fun. I do. I’ve travelled all over the world this way. And I’m just starting. My wife and I are going to Italy next year on air miles and I’m actually planning a 6-week, around-the-world trip with my family of four in 2013, with more than 1/2 of the hotel/airfare covered by air miles.
One tip that nobody has mentioned is this: I couldn’t book a flight from my city to Italy online. So, I booked a flight from Seattle to Italy, then called a CSR within 24 hours to change my itinerary to add a flight from my town to Seattle. No problem. I have to spend the night in Seattle, but it is a “free” flight.
There are more tricks, of course. But none of them are for people who don’t enjoy solving the puzzle. If I could get paid my normally hourly rate for the time I spend travel hacking, I’d be better off using that time to work and just pay full fare. But what fun would that be?
I’m in Canada, and we use the TD First Class Travel Visa Infinite card. I guess the person who named that got paid by the letter. We put EVERYTHING on our card (and pay it off in full), and the points we’ve earned have paid for countless vacations for our entire family.
We chose this card in particular because there are no restrictions whatsoever on how you use the points. You simply book the travel yourself (if you use their website you get extra points) and they reimburse you for it through a credit on your card, depending on how many points you want to use. And that’s it! There’s also a catalog of goodies to purchase if you don’t want to use it for travel. Best of all, because we have the top tier bank account (free with minimum balance), the annual fee is forgiven. /
We’ve used various ones over the years, and have managed to do most of our flying with points. Our kids went to school across the country from where we live, so this has been very convenient. Id say we’ve redeemed over 300K on American alone. IMHO, stay away from Delta. They have reduced the value of their points to be almost worthless.
April, please learn the difference between “Fewer” and “Less.” I really, really hope that there are NOT “less” seats available. The danged things are already too small! I assume that you mean that there are numerically not as many as are available for purchase with money rather than mileage points.
If you can count them, there are “fewer.” If you can’t count them, or are referring to size, there are “less.”
“After a hurricane, there are fewer grains of sand on a beach. Beach-goers will notice less sand.”
Personally, I’ve had great luck with earning and burning miles and I don’t fly much on paid tickets. Just this year, I used 160,000 British Airways miles to buy two tickets in business to go to Lima, Easter Island and Buenos Aires. Plus, I used 60,000 points to cover 4 nights hotel and my friend used some of his points to cover most of the other nights. It made a vacation that would have cost me close to $4-5,000 cost only about $500.
I’ve also picked up just this year: 225,000+ American Airline miles, 5,000 Starwood points, 60,000 Priority Club points, and around 10,000 points/miles in other programs. I picked up most of the miles through credit card signup bonuses and other promotions. The way I keep on top of all the offers out there is by reading blogs like View from the Wing and One Mile at a Time, plus forums like Milepoint and Flyertalk. It does take some time, but the payoff of visiting places I could never afford to otherwise is well worth it for me.
When it comes to finding seats and rooms, I’ve been lucky so far. I’m able to be flexible in my schedule, so I haven’t had much trouble yet in finding flights to places I want to go to.
My folks live in an airline hub city, use the same carrier credit card and fly free ALL THE TIME. Works out great for them!
Joined the travel hacking game about 12 months ago. I’m not near the ranks of others, because I won’t sign up for a card unless I can meet the minimum spends.
Anyhow, this past summer my husband and I flew first class to Europe and we have enough miles to do the same thing again.
I don’t bother with Capital One or other cards like that because you’re only getting .01 value. When redeeming a business/first class ticket the value is often much higher.
I see it as a hobby….my husband doesn’t like traveling and I’m on a quest to see the entire world. The only way he’ll tag along is by being in business/first. No way could we afford that ordinarily 🙂
There are several travel loyalty experts who have been publishing free content on the best airline, credit card, hotel and car rental deals for earning points and miles for several years on BoardingArea.com.
BoardingArea is hosting site for these bloggers.
Travel hacking is a term that has been popularized over the past couple years. It is a relatively new term to me for something I have been doing over 20 years.
My blog is Loyalty Traveler. i have nearly 1,300 articles on hotel loyalty points, hotel program analysis and comparisons.
Gary Leff with View from the Wing has artcles back to 2003 covering all aspects of travel hacking.
Ben Schlappig of One Mile at a Time travels almost weekly around the globe and shows detailed photos of what the flights offer for Business and First Class travel on different airlines.
A bunch of new bloggers recently began posting the ir blogs on BoardingArea.com.
There is very little information you won’t find regarding the best travel deals on BoardingArea.com.
Brian at Thepointsguy.com, Rick at frugaltravelguy.com, Darrius at Millionmilesecrets.com also provide detailed analysis of credit card offers and other travel hacking tips.
There are many of us providing this information for free in organized and frequently updated blogs.
Wow is all I can say. I live in Europe and it takes my wife about two years to get an economy flight home (she flies monthly), than add in taxes ouch. Credit Cards crap 1 mile per euro, 70,000 need to fly to Canada.
Noobtraveler is a good site for this too.