Tag Archives: frequent flier

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4 Things to Know About Airline Miles Now

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The coronavirus pandemic has raised a lot of questions about air travel: routes, rules, restrictions, refunds, how much to spend, where to sit, when to book. And not least of all: What about my miles? Frequent travelers want to know what the current airline industry landscape means for all those points and miles they’ve been racking up or have had to re-deposit back into their accounts due to canceled travel plans.

We invited miles-and-points expert Gary Leff to speak in our Zoom chat last week about air travel in 2020 and 2021. Gary reports on this topic every day at his View From the Wing blog, and he works directly with travelers at his Book Your Award flight-planning service.

Here are the four things he wants to make sure travelers know about airline miles now, in his own words:

1. Your miles are generally safe, unless the airline goes out of business.

“Even if an airline goes into Chapter 11 bankruptcy, the frequent-flier programs are incredibly valuable. They’re often the most valuable part of the airline. United Airlines was just able to raise private funds for an airline at the $5 billion level now, backing the loans with its frequent-flier program. People were willing to put up $5 billion knowing that there’s substantial revenue there. American, for its part, is expected to put up its frequent-flier programs as collateral for a $4.75 billion CARES Act loan. The Treasury Department considers it to be pretty good as well. So your miles are generally going to be safe, as long as the airline itself remains in business.”

2. It’s going to be a pretty good time for frequent fliers in the near- and medium term—until airlines recover and fill their planes again.

“For paid tickets, up until now, there haven’t been a ton of great offers. That’s largely because there hasn’t been an opportunity to really incentivize travel. The airlines haven’t been using their loyalty programs to really drive business. Concern for health is a binding constraint. Restrictions on international travel are binding constraints. Once the circumstances of the world change, we’ll really start to see deals and mileage offers. The fact that there are empty seats will lead airlines to use their primary marketing programs to encourage filling those seats.

I think that award availability will be pretty good for a while too. As the airlines recover and print more and more miles (and eventually they will, and seats will begin to fill up), those points that we’re all earning very quickly will probably become worth less in the future. So I think it’s a good idea to earn and burn miles within roughly the same time period—meaning, earn those miles and then use them in the near term, rather than saving them for the future.”

3. For travel in the distant future, it’s generally better to use miles or points than to pay money, unless it’s for the most exclusive accommodations or remote flights.

“One of the things that I really like about miles is their flexibility. Certainly ticketing policies have been more flexible recently than they have been in the past, but mileage bookings have long been very flexible. If you need to cancel, you can put the miles back in your account, usually for a modest fee. Hotel bookings with points are also often very cancel-able as well, so they give you a lot of flexibility and peace of mind. You make a booking, and then if things don’t work out the way that you want, you can change often at the very last minute. (But always check the cancellation rules when making a reservation.)

I like taking a wait-and-see approach on booking paid flights right now. To folks who may have booked far in advance in the past, I’m saying to them: Wait, hang on to your cash. Except for flights to the most remote places, planes aren’t completely selling out. Holding off is often a good idea.

For mileage tickets, though, you may want to book the best available flights you see today. Because planes are empty, you might find your ideal seat. If you find a good but not ideal seat, you can keep checking for availability to improve and then pay a modest fee later to improve your trip.

4. Schedules will change, and that could be to your advantage.

“Schedules are going to change, so don’t assume that the flight that you book today is going to operate exactly the same way ten months from now.

Because the schedules aren’t real, the one advantage of a schedule change is that you may book a sub-optimal schedule with miles, and most airlines—certainly U.S. airlines—will be pretty darn flexible in terms of giving you an alternative. I’ve often used schedule changes to improve my itinerary.

Mileage tickets are very low-risk. They often aren’t exactly what you want the first time out, but if what you booked has changed, the airline will usually open up revenue inventory. At that point, you won’t be limited to what was available as an award, and then you can kind of get the schedule that you would have wanted.”

 

 

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Airline Miles and Points: How to Get the Best Award Flights in 2020

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The major U.S. airlines haven’t had to work very hard to win our business over the past several years. With the economy growing and the number of carriers shrinking (thanks to mergers), their planes have been packed. And since they’re able to sell their seats, they aren’t too interested in making them available for award travel. That’s why your best bet for using miles in 2020 is to look abroad to these airlines’ alliance partners, many of whom fly to the U.S. and do have empty seats. On these partners, you’ll get the greatest value exchanging your miles for international business and first class. Here are five more ways to get the most out of your miles this year:

Be flexible…and persistent.

The key to getting the award ticket you want is to be willing to consider a range of dates or at least connecting flights. If your heart is set on the only non-stop flight on your route and there’s only one day you can travel, it might work out, but the odds aren’t in your favor. Airlines don’t always make it easy to find the awards either: American Airlines features only some of its partners on its website, and Delta.com and United.com frequently throw errors. Pick up the phone and call, but know that the agents aren’t always incentivized to be helpful either. I never assume that no means no in air travel until I’ve heard it three times.

Here are just a few of my go-to routes for redeeming premium-cabin award travel where I find a great deal of success:

•Air France business class using Air France’s own miles (transfers from major bank programs)
•Singapore Airlines business class using Singapore’s own miles (transfers from major bank programs)
•Emirates first class (Emirates is an American Express and a Chase transfer partner)
•Korean Air first class using Korean’s miles (transfer from Marriott)
•Cathay Pacific business class for four passengers if booking 6–11 months in advance (American or Alaska miles)
•Asiana business class (United partner, bookable with miles from any Star Alliance program)

Your credit card choice matters more than your airline choice.

Miles aren’t about flying anymore. About two-thirds of miles are sold to and awarded by third parties, largely credit-card–issuing banks. There’s intense competition for credit-card customers. Use that to your advantage. These are my picks for the best credit cards for travelers.

Airline credit cards are for benefits, not spending.

If you don’t fly one airline enough to earn frequent-flier elite status, but you do fly one several times a year, get their credit card. At a minimum, that will entitle you to free checked bags and priority boarding It also means you won’t be forced to gate-check your carry-on, and you will be able to bring on a carry-on even if you’re booked on a dreaded Basic Economy fare on United. But don’t put any unnecessary spending on the airline credit card, because….

Bank programs that transfer to miles earn rewards faster and give you greater flexibility.

Even if you want to collect Delta miles, the Delta card doesn’t earn the most SkyMiles. American Express Membership Rewards cards transfer to SkyMiles and to other airlines too, and they earn points faster than the Delta card. The same is true for the United card and Chase’s Ultimate Rewards products, such as the Sapphire Reserve.

Use an airline card for the benefits, but put your spending on a card whose points—like American Express Membership Rewards or Chase Ultimate Rewards—transfer to a variety of mileage programs. You’ll earn more points, and you’ll have the flexibility to put them where you need them later, once you know the trip you want and which airline has availability.

Consider buying your ticket (with money, not miles).

Even though planes are full, fares are lower than they were just a few years ago. First, there’s competition from ultra-low-cost carriers such as Spirit and Frontier in the U.S. and Norwegian across the Atlantic. Second, airlines are now better able to offer lower first-class fares because of changes to the technology they use—especially for premium cabins. Domestic first class used to be several times more expensive than coach; now it’s frequently less than 50% more.

Business class and premium economy go on sale. In addition, British Airways will give $200 off even a sale-fare business-class ticket to AARP members (and this is stackable with a 10% discount for Chase British Airways credit-card customers). There are great deals out there. Take advantage of them when they pop up, rather than searching for award trips that require greater flexibility (and sometimes too many miles). Consider premium economy—akin to domestic first class—rather than business class, especially for daytime flights when you don’t need that bed. Norwegian, especially, sells it at bargain prices to Europe.

Once coronavirus concerns subside, be on the lookout for cheap business class fares to and through China. China Eastern, Hainan, Sichuan, and Xiamen all run sales and sometimes their U.S. counterparts will match pricing. Once you’re in Asia, buying cheap tickets to your final destination or redeeming miles to local destinations can make great sense.

There’s still tremendous value in frequent-flier programs, but that value is only really achieved by using miles to fly on non-U.S. airlines—or by transferring miles to the programs offered by those international airlines, if you’re willing to venture into the less familiar.

 

Gary Leff is the points-and-miles expert behind View from the Wing and the award-flight booking service BookYourAward.com. Follow him for smart takes on airlines, credit cards, points and perks on Facebook and Twitter, and sign up for his newsletter at View from the Wing.

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Best Credit Cards for Canadian Travelers

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Using the right credit card is a smart way to maximize your travel booking power, and there are several that we recommend every traveler have in his or her arsenal. Some cards come with sign-up bonuses, others offer the potential to earn valuable points you can trade for hotel stays and flights, and others reward you with cash back.

We regularly update our Best Credit Cards for Travelers list, and every time we do, we are gently reminded by our Canadian readers that our advice is very useful…unless you live in Canada. That’s because Canadians can’t apply for a U.S. credit card unless they have a U.S. bank account and a U.S. address. In the interest of serving all of you globetrotters who reside in Canada, we reached out to our old friend and miles-and-points expert Gary Leff, who writes View from the Wing and founded BookYourAward.com.

“The Canadian card market isn’t quite as lucrative or competitive as the U.S. market,” Gary explained. “And it’s also somewhat in flux, because Air Canada is going to be ending its relationship with Aeroplan (the frequent-flier program that it spun off) and starting its own new program. As a result the value of accumulated unused Aeroplan miles is likely to fall. As a result my three favorite Canadian cards are American Express products.”

Here are Gary’s picks for the best credit cards for Canadian travelers:

• Starwood American Express: This has been a go-to in the U.S. for me for 16 years and is pretty similar in Canada.

• Gold Rewards: This one earns Membership Rewards points, which transfer to a variety of airline mileage programs (different programs than the U.S. cards have access to).

• Simply Cash Preferred: For cash back, this one gets you 2% rebates.

If you have any questions (for us or Gary), let us know in the comments below. And be sure to follow Gary on ViewFromtheWing.com for the latest insider info and explanations of the world of miles and points.

 

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Be a smarter traveler: Read real travelers’s reviews of Wendy’s WOW List and use it to plan your next trip. You can also follow her on Facebook, Twitter @wendyperrin, and Instagram @wendyperrin, and sign up for her weekly newsletter to stay in the know.