Maximize Your Frequent Flier Miles
by Carrie E. Gillette
Buy gas, earn miles. Take a family vacation, earn miles. Purchase clothes, earn miles. Refinance your home, earn miles. It seems just about any money transaction you make presents the opportunity to earn free travel.
Today, frequent flier mile programs are booming. "Frequent flier programs serve well for three parties," says Randy Petersen, editor of InsideFlyer Magazine. "Airlines use them to compete against such challenges as lower fares, to cover up substandard service, and to generate new business by selling miles to partners. For the partners, it presents a cheap way to cash in on the most popular form of loyalty currency in the world. And for travelers, there really can be a free lunch--especially if you're hungry for a free trip to Hawaii."
But before you begin packing, don't be seduced by the notion of a free vacation. Reading the fine print and understanding the restrictions may be the only key that unlocks free travel and other rewards.
The take-off of the frequent flier program
To make the most of your earned miles, it's important to understand the origin of frequent flier programs. While the plethora of mileage-earning opportunities may not have existed when the program was first launched 22 years ago by American Airlines, the idea to reward loyal customers was the same. For very little money, American Airlines, followed immediately by United and TWA, found a way to boost revenue by rewarding dedicated passengers with free tickets and appealing upgrades.
Today, the programs are growing at an astounding rate. An increase in programs and program options may seem ideal to the consumer; however, more programs and more people participating creates a bottleneck for travelers to cash in on their earned miles. There are more than nine trillion unredeemed miles, or about 22 million first-class round-the-world flights.
Choose wisely
With hundreds of frequent flier programs to choose from, the task of finding the right one for you may seem daunting. "Consumers need to look at their travel and mileage-earning behavior before deciding on a program," says Tim Winship, publisher of FrequentFlier.com. "The biggest mistake I see is people participate in too many programs. They have 500 miles here, 1,000 miles there, and another 2,500 miles somewhere else. These 'orphan miles' are never enough to add up to any tangible reward."
Narrow your program selection by first looking at your primary carrier for air transportation. If the airport closest to you has more flights leaving through Northwest Airlines than United, begin by looking at Northwest's programs and program partners. Most major programs are big enough that many vendors participate who will suit your purchase style.
"Frequent flier programs make sense for all travelers and not just airline people," says Petersen. "Hotel 'road warriors' can also benefit from these programs. With so many miles coming from nonflight activity, you really don't need to fly to earn free travel."
The art of turning miles into something
Earning miles is easy these days, but redeeming your rewards can be difficult. There are more than nine trillion unredeemed miles, or about 22 million first-class round-the-world flights.
"People are still signing up for frequent flier programs at the same rate as years past, but the level of frustration is increasing," says Winship. "The difficulty in cashing in on miles makes the program worthless to the consumer."
Tighter seating restrictions, additional fees, and changing rules are just a few of the frequent flier hurdles that you may have to face.
Over the past few years, the value of frequent flier miles has decreased. This isn't to say the programs have no value. It has more to do with the decrease of the average ticket price due to a decline in travel, as well as discount carriers driving down costs.
But there is good news. Petersen reports that, in 2003, more than 20 million free awards were handed out. Because many members redeem multiple awards in a year, he estimates that 4.5 million members redeemed their miles.
"A common misconception about frequent flier programs is that no one can ever use their rewards," says Petersen. "The fact is every seat, every day, on every flight is available for award redemption. It really all boils down to if you have enough miles to redeem the award you want."
Cutting through the red tape
Tighter seating restrictions, additional fees, and changing rules are just a few of the frequent flier hurdles that you may have to face. Below are the common restrictions that accompany programs:
Increased miles: Airlines have begun increasing mileage requirements for travel. Last year American increased the mileage required for business- and first-class travel to Hawaii by 15,000 miles, according to Consumer Reports. It is likely that other airlines will follow.
Advance reservations: Be aware of deadlines when making travel reservations or you may lose your seat. Also note that if you need express reservations, it could cost you.
Extra fees: It's not free travel if you have to pay additional money. If you change the date or time of your flight, you may be charged a fee. If you change your flight destination, that's another fee. Want to cancel and use your mileage for something different? You guessed it--a fee.
To make the most of your earned miles, it's important to understand the origin of frequent flier programs.
Seating restrictions: If you're hoping to plan a family vacation with your miles, make sure your program allows you enough seats. On some flights, you may be limited to a maximum of two seats.
Learning more about your program's restrictions is the best way to make the most of your miles. Here are some other tips:
Plan ahead: Award seats are best booked ahead of time. Contact your airline to find out when you can take advantage of award seats.
Earn miles everywhere: Choose a program where you can take advantage of mileage partners. Avoid participating in multiple programs, which may spread your miles thin.
Understand upgrades: Many programs have restrictions on using award miles to upgrade your ticket. Ask before purchasing to avoid frustration.
Get help: Petersen's company, AwardPlanner, helps members with their award redemption--kind of like a frequent flier award travel agency. You can plan a single trip for $39.95, plus a service fee. For $99.95, plus a service fee, you can receive one full year of travel planning assistance. Through knowledge and proper planning, AwardPlanner's average rate of award redemption is 94%.
June 28, 2004
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