Why Hoarding Airline Miles is a Fools Game

Confession: I am an airline miles and hotel points whore. Yes, whore. I am the nut who will fly an extra connection - completely out of the way - just to rack up another 1,000 miles. A few years ago, when a hurricane was bearing down on Hooterville, I had scheduled work travel. I knew that if I waited for my outbound flight, there was a good chance that it would be canceled. I went to the airport early and hoped to get on an earlier flight to New York. The only option that would have gotten my out earlier was to fly from Florida to SAN JUAN, Puerto Rico to JFK - instead of a direct Florida to NYC flight. For an extra 1,900 miles, I would gladly make a detour to San Juan - and I avoided a hurricane - BONUS!

Based on the title, you wouldn't think that I would be the kind of fellow that would be accumulating airline miles, would you? Oh contraire...I love accumulating. I also love using them. I am an "earn and burn" kind of a guy. Many people often make the serious mistake of "saving up" for a destination award - a trip to Hawaii, a summer vacation to Europe, etc. The reality is that airline miles and hotel points are not appreciating assets - that is, you do not earn interest on your miles balance, and there is just no way that the miles you have today are going to be "worth" more tomorrow.

Instead of saving for a Hawaiian vacation, figure that you are saving cash for a kitchen remodel. You know that the new kitchen will cost you $25,000, so you begin stashing away a few extra dollars each month. After one year, you have saved $18,000, but now the cost of the new kitchen has risen to $40,000. You continue to save, and after another year, you have saved about $30,000 - except, the cost of your kitchen has now risen to $50,000. Face it - at this rate, you're starting to think about dining out more often than cooking at home.

How far fetched is this example? Not very, when you consider that within the last couple of weeks, one major airline and one major hotelier have introduced major changes to their award structure that has caused nothing but a serious devaluation in the currency that is your hotel points and airline miles....and they did it completely under the radar...essentially in the middle of the night when no one was looking. That is easily the biggest gripe. Without a doubt, had USAirways or Marriott announced that they were moving the goalposts with a few months notice, allowing people who had been planning on booking these affected awards the opportunity to do so, they would have created some goodwill - even while delivering bad news. By waiting until after the voting for the Freddies (the mileage geeks' equivalent to the Oscars), Marriott really steamed some folks.

Devaluation is the term often heard when disappointed folks talk about their inability to score their intended award, but INFLATION is just as critical. There are just too many airline miles and hotel points on the market right now, all chasing a limited number of available award seats and hotel rooms. It used to be that you actually had to fly or stay at a hotel to earn their respective currencies. Now, you can buy flowers, eat at your favorite restaurants, charge your groceries on a co-branded credit card, or refinance your mortgage to get points and miles. This ease in earning miles has led to a glut on the market. The more miles people "own" as assets, the more miles airlines keep on the books as liabilities. When airlines and hotels realize that there are too many awards sitting unused in loyalty accounts, they need to tighten the strings.

The bottom line is this - if you are saving for a "dream" reward, aim to have the required mileage earned in less than one year. If you cannot do that, there is a good chance you will not get the desired award at the level you are chasing. Reduce your expectations accordingly for each year it will take you to earn the mileage required, and you will be less disappointed. Also, many airlines and hotels readjust their award offerings early in the year. If you think that you MIGHT use an award - and you suspect that the award may cost more when the next devaluation occurs, book it in advance. Most hotels will gladly return the points you have allotted for a canceled award - and some don't even require you to have the points until you are ready to travel. Airlines will usually charge you a fee to do the same, but you might be willing to pay that as insurance to secure the award you really want.

Earn 'em and burn 'em - you will reduce the likelihood that you will be disappointed.

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Southwest Airlines Lets Students Double Up

Southwest Airlines announced a new College Rapid Rewards Program aimed at the nation's legions of collegiate travelers. They are offering four credits for a new sign-up, and double flight credits for each flight booked at their web site. Southwest flights usually earn one flight credit in each direction (two credits for one round-trip ticket) and require 16 credits earned within two years to yield one round-trip award ticket. Hence, the standard Rapid Rewards program usually requires 8 round-trip flights to earn one "free" ticket. With the college program, a student can earn their first award ticket after just three round-trip flights; and subsequent award tickets after four round-trip purchases.

I am a huge Southwest fans, especially when I am traveling on my own nickel. I am meeting a few friends in Texas in a couple of weeks for a weekend outing. I was able to get a round-trip flight from Tampa to Houston for $141, including all taxes and fees, using their Ding feature. Unfortunately, I will only be earning the standard two Rapid Rewards credits for my flight!

I see this promotion as a deal for both Southwest and a lot of college students that live and go to school in cities served by Southwest. This airline is known for their low costs, so their fares should appeal to college student budgets. Southwest has the opportunity to secure some long-term loyal customers (who, by nature, are already a pretty loyal bunch), while they still don't care about things like assigned seats, first-class cabins, and international award destinations. On top of that, college students will have the technological savvy to bring their own in-flight entertainment (iPod, laptop with DVD, etc.) and the resourcefulness to pack their own lunch so they won't miss out on Southwest's lack of in-flight movies or bothered when the flight attendent drops by with only a bag of peanuts.

Hat tip to Free Frequent Flyer Miles.

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Delta Offers Similar 25,000 Mile Bonus

I mentioned in a previous post that United is offering 25,000 bonus miles through Rewards Network (formerly iDine). Delta is offering a similar deal -- one that I think is a little better. The gist of their deal is that if you do 25 qualified dines of $25 or more before the end of the year, they will give you 25,000 bonus miles. United's deal required you to spend $125 per month, every month, until the end of the year to get their bonus. If you don't spend the $125 one month, then you get no bonus. With Delta's deal, they don't specify when you need to do your 25 dines, just that you need to have 25 done by the end of the year.

I don't always spend $25 per meal, especially when I dine alone for work, but I have worked out a way to take advantage of deals like this anyway. It really only works for places where you do some repeat business, but it is a handy tool. Instead of paying for your (under $25) meal with your registered credit card, purchase a gift card/certificate for $25 and pay for your meal with the gift card. You will get the remaining balance to spend next time, and you will meet the requirement for a $25 dine.

I am still hoping that American will kick in with a deal of their own. Remember to register for this deal BEFORE you dine out to qualify!

Hat tip to Free Frequent Flyer Miles.

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25,000 Bonus United Mileage Plus Miles

This year, frequent flyer programs are celebrating their 25th anniversary. American Airlines was the first to introduce the AAdvantage program, and United was right behind with Mileage Plus. I mentioned last month a number of promotions that American was running to celebrate. Now, it is United's turn.

You can earn 25,000 bonus miles using Mileage Plus Dining by Rewards Network (formerly iDine). Spend $125 per month at qualifying restaurants, including tax and tip, every month from July through December, and you will receive 25,000 bonus miles -- enough for one round-trip domestic ticket! You must register first.

I hope that American offers a competing deal.

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The Worst Day on the Calendar

No, it is not a specific date. For me, it is the first day back from a week-long vacation. Getting back into the spirit of work and out of the sleep-in mentality takes more than a couple of days. I guess I suffer from some sort of vacation hangover.

Worse, too, is the excessive amount of time that I end up spending defending my choice of vacation spots. Visualize people who, without saying a word, have a look on their face that just screams "You took your vacation and went to OMAHA? Nebraska?" How about the look of bewilderment that says "Saint LOOOOOOOis???"

I guess most people think of more typical vacation spots -- Hawaii, Las Vegas, New York City...heck, even Pittsburgh would elicit less odd looks than Omaha. On the inside, though, I am the one chuckling. Friends of mine recently took a very fancy cruise through the Caribbean for a week. I guaran-damn-tee you that I had a better time than they did, and spent about 1/3 the amount of money.

People complain all the time about not being able to use their accrued miles on award flights or their hotel points for prime hotel rooms on their vacations. While some may not consider the midwest to be a prime vacation destination, I never have a hard time using miles for a flight or points for hotels, whenever I want -- even at peak times, like the College World Series, when hotel rooms tend to go for upwards of $150-200/night in prime locations -- if you can find a room.

Those who mock my vacation choices are the ones who would spend their time off battling some overcrowded area, to get into the touristy places (that are most like the ones we have here in central Florida), to do overpriced vacation-y things, I will keep my little secret. I am having more fun, for less money....so stay the hell away from where I am headed! :-)

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Old Business, Part I

If I were better at this blogging thing (or, if I haven't spent the 15 of the first 18 days of this month traveling), I would have already mentioned American Airlines' Aadvantage 25th Anniversary celebration. Way back when (1981 -- I think the Earth was still flat), American Airlines launched the first airline loyalty (frequent flier) program. Obviously, in the last 25 years, there has been an explosion of programs, such that loyalty clubs have expanded well beyond the bounds of airlines and into most people's every day lives. You can get a punch card for your sandwich or coffee purchases, points for car rentals and hotel stays, cash back (and other perks) from credit card purchases, and even earn points that you can redeem for free condoms.

But, I digress....

American Airlines is offering a new deal a day for the first 25 days of May. Some of these are pretty good, and many are still available through the end of the month. There are also a few sweepstakes for which you can register to win some Aadvantage miles or other prizes. You do need to get on this, though, as many/all of these deals expire at the end of the month.

Some highlights:

Save 25% on an award ticket flown over the summer.
25 Aadvantage miles per dollar spent on flowers through FTD.
2500 bonus Aadvantage miles for a stay at an Intercontinental Hotel (Holiday Inn, for instance).
Double miles on your next AA flight.
25,000 bonus Aadvantage miles for getting AA MasterCard (enough for a free domestic ticket).

There are more deals -- some may appeal to you more than these. There is a scroll at the bottom of the page that will take you to previous day's deals. Keep checking back for the next week or so for the rest of the deals to come, as well.

Think of me fondly when you are using your newly found mileage wealth for fun and happiness.

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What ever happened to customer service?

I don't rant that much.

OK...I rant a lot. But, only when it is justified. Usually, the justification that I need comes in the form of dealing with morons (which, around the office, are affectionately called "mo-mo's").

One such mo-mo was encountered this week while trying to contact Continental Airlines (CO) customer service department. I think that I know a little bit about the ins and outs of traveling, but every now and again, I need some clarification on the airlines' bizarre rules and procedures. This is especially true when I change my "loyalty" (think of a stiff breeze) from one airline to another. I tend to know the rules that I need to know - and those tend to be the ones that I utilize most frequently.

I had the recent opportunity to obtain Gold Elite status with Northwest Airlines (NW). Without getting into a lot of minutiae over airline alliances, status, upgrades and the like, just know that I needed to know how my status would help me get an upgrade or elite seating assignments with CO. I should point out that I knew that my status WOULD get these benefits, I just wasn't sure how.

I thought this email to CO's customer service department would help elucidate things for me, just a little:

I purchased, this evening, a ticket from MCO-IAH on 3/30/06 and returning on 4/4/06. The Continental Confirmation Number is XXXXXX.

I am a (newly minted) Gold Elite member of NW WorldPerks (#100000000). I was informed by Northwest WorldPerks' customer service line that I would be eligible to upgrade to First Class, based on availability, and that I would be able to secure elite seating on Continental Airlines flights. I entered my WP number into the reservation, but I was not allowed to select elite seating on the seating chart.

So, my questions are, (a) Am I allowed access to elite seating on CO flights; and if so, how do I secure my choice of seat; and (b) does CO recognize my status level automatically and queue my upgrade request.

Lastly, can you also tell me in what order priority is determined for awarding elite upgrades? I understand that Platinum elites would get access ahead of Gold elites, but do all CO OnePass elites get access ahead of all WorldPerks elites (i.e. CO Plat, CO Gold, CO, Silv, NW Plat, NW Gold, NW Silv) or is it based on status within the respective programs (i.e. CO Plat, NW Plat, CO Gold, NW Gold, CO Silv, NW Silv)?

Thanks for all of your help. I look forward to flying with Continental soon.

Best regards,
The Traveling Man

Pretty clear what I am asking, right? I think so. I think that someone who works in the customer service department of an airline's frequent flier program would think so. Well......not so much.

Thank you for contacting the OnePass Service Center.

OnePass offers a promotion that matches the elite status of some other airline frequent flyer programs with an equivalent level in the OnePass Elite program. The airline you are inquiring about is not eligible to participate in the match program.

Ange Smith
OnePass Service Center

WHAT? Where on earth did ol' Ange think that I was asking about a status match to CO?

I am not so naive to think that canned email responses are not used -- and, actually, are probably appropriate in many situations. I use them myself because I often get asked the same questions over and over again in my job. However, I don't think that this person even read my email. I guess that they might have skimmed it, or simply sent it through an email filter that looks for keywords and this is the response that was shot out.

Technology should be used to ENHANCE your customer service, not replace it. The only impression that I got after dealing with CO here was that there customer service department is nothing short of shoddy.

Needless to say, I was pretty peeved. The chances of me flying with CO are pretty remote unless I have to anyway, but this is nothing that would make me want to fly them more.

FULL DISCLOSURE: I sent a reply to this email telling them that my question was not answered, and they responded back with an apology and the correct answer to my original questions. However, there should be no need to take that extra step.

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This better be good...

Yeah, so I haven't posted in nearly a month. I stink. I will try to make some new stuff worthwhile.

My previous post briefly delved into my fascination with collecting airline miles and hotel points. Just this week, I have discovered a new web site to make sure that you get the best reward available for every purchase. You can browse evreward.com by category (all travel sites, for instance) to find the best available discount or mileage opportunity for any online shopping activity. There are SO many sites listed that I had no idea offer any kind of renumeration. Of course, the part of me that is really bummed is the one that thinks of how much I could have received in travel rebates (on the company nickel) that I have never known about. Uggghhh!!!

Some highlights and lowlights of the site -- some of the discount amounts advertised on the listings are not accurate. For example, a search on Wal-Mart, which is advertised at a 9.6% discount, reveals that the best cash back discount is from Upromise.com and is only 4%. On the other hand, it also shows how you can get cash back on a reservation at Hyatt Hotels ($1 per booking through ebates.com) PLUS mileage (or hotel point) earning opportunities. They also have a downloadable feature that will alert you to any savings opportunities that you might be missing, with the opportunity to re-route you through the correct portal.

All in all, this new site, which is still in "beta testing" gets two thumbs up and The Travelin' Man Seal of Approval.

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Using my travel powers for good!

Good for me, that is. I have not really discussed my bizarre fascination with airline miles and hotel points accumulation. I try to share some of my favorite deals with those who know me well -- and who also understand and support this obsession. This one is A-1!

Hyatt Hotels Gold Passport offers what may just be the best travel promotion in the industry. Faster Free Nights (FFN) is their deal where they offer you a free night stay for every two stays paid with a Mastercard. Last fall, I was able to get a rate of $75/night at the Hyatt Regency in Dallas through Travelzoo. I was able to secure two one-night stays at that rate while I was in Dallas for business. Two stays = One free night!

Sidenote -- as great a deal as this is, it even gets a litte better. You can only use single FFN awards on weekend nights, or you can use them for a mid-week stay (when hotels are usually more expensive) if you stay for a minimum of three nights. Starwood hotels offered a similar promotion last year and I was able to acquire five free nights -- but, they had to be used on weekends, which somewhat limited their use-ability.

This coming weekend, I will be using my free weekend at the Hyatt Regency Pier Sixty-Six in Fort Lauderdale. I have read some less-than-flattering reviews of the place, but for a one night place to crash, I am sure it will do. Rates this weekend run a minimum of $350 including tax -- with most of the upgraded rooms pushing $400. Cost out of my pocket = $0 -- gotta love the company expense account; gross revenue to Hyatt = $150; Reward = $350/night room for nothing in high season in south Florida. On top of all that -- the award nights were supposed to be used by January 31. I was fortunately able to beg for a five day extension to use the award this week.

I like Hyatt hotels, the Gold Passport program, and Faster Free Nights. I wish that they had more hotels in areas that I travel at competetive rates. They have recently merged with Amerisuites and Hawthorne Suites, so perhaps there will be more hotels in my travel regions in the coming months. Hyatt is not running Faster Free Nights right now, but I will be sure to post the next time that they do.

Marriott Rewards, however, is running their MegaBonus promotion. This one is targetted (the offer is not the same for everyone, but as far as I know, if you have a MR number, then you are offered something), but offers a bonus on stays during the traditional spring travel season for college admission counselors!

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