View from the Wing

Frugal Travel Guy outlines how he values the mileage in the various airline programs in which he participates.

He’s dead-on that British Midland’’s points are worth the most:

• Cash and points awards stretch the value of miles.

• Reasonable premiums for premium class awards. Business class is 50% more expensive than coach, first class is double.

• One-way awards at only half the price of roundtrip provide for amazing flexibility.

• Star Alliance membership means that the above features are leveraged across an amazing network of carriers, and unlike United they don’t filter out otherwise-available award seats.

And the program is rewarding for it’s elites as well, with low qualification thresholds for top tier (Gold), heavy bonuses for paid premium class fares (a Gold who has already requalified earns 625% on paid first class fares!), and top tier elites even receive complimentary premium economy seating when redeeming for coach flights on bmi metal.

But he’s terribly mistaken in valuing US Airways miles lower than the rest — lower even than Delta Skymiles nad Northwest Worldperks.

US Airways is a pain on many, many levels. I don’t like actually flying them when there are reasonable alternatives. And I would not put my flight miles into the US Airways Dividend Miles program and earn elite status with the carrier. They no longer provide elite status bonuses on flights, and they don’t award 500 miles minimum per segment any longer (and US Airways has a whole bonus of flights under 500 miles in the Northeast!). Instead, I credit flights under 500 miles to British Midland (as I do with United flights under 500 miles, since they’ve also abolished the minimum earning per segment, and British Midland awards 600 miles minimum in coach and still offers elite bonuses).

But the question is what are miles worth, not whose program should you credit flight miles to. Of course I’ll take elite bonuses on another carrier, and elite benefits from another carrier, whenever possible. And for non-flight miles, one should certainly at least consider American because as Frugal Travel Guy points out mileage earned from all sources currently counts towards lifetime elite status.

But I’d rather credit non-flight miles to US Airways than to United, and certainly credit such miles to US Airways before Continental, Northwest or Delta. US Airways is in the Star Alliance, and their miles can take you first class on Singapore, Thai, ANA, Asiana, Swiss, and Lufthansa. And whereas United uses its technology to prevent its frequent flyer members booking award seats on its partner carriers — filtering out seats that its partners are offering for redemption — US Airways has no such technology. So it’s easier to redeem Star Alliance seats using US Airways miles than it is using United miles. Plus, their award chart is competitive although in some cases a bit more expensive, for instance North America to most of Asia costs 120,000 miles in first class using Dividend Miles, just as using United Mileage Plus miles … although US Airways bills far South Asia at its higher India rates. So I’d book Washington, DC to Hong Kong using Dividend Miles, but not to Kuala Lumpur.

Sure, US Airways redemption fees are annoying. But they’re a pittance compared to the value offered by Star Alliance premium class redemptions.

Note, though, that all of the advice in Frugal Travel Guy’s post and this one is entirely contingent.

• American may stop crediting mileage from all sources towards lifetime elite status. This is a change which has been rumored for a long time, I just hope it doesn’t happen before I hit 2 million lifetime in my AAdvantage account.

• British Midland could well be taken over by Lufthansa, and its points folded into the much less generoud Miles & More program.

• US Airways could even leave Star Alliance, now that Continental is entering. Or they could figure out how to save money the same way United has, by denying its members otherwise-available award seats on partners.

• Meanwhile, Delta and Northwest and Continental have all announced serious gutting of their programs over the past couple of years (and Delta this year especially). How much lower could Delta (and a combined Delta-Northwest) possibly go? All bets are off based on future changes which could occur in the programs like American, United, and US Airways which continue to offer real value.

Personally, I accrue in United, American, US Airways… British Midland when I can (great for Hilton double dips, Hertz rentals, and Star Alliance segments under 500 miles as well as any other segments I won’t need to requalify for status). Unfortunately British Midland points are just difficult for someone based in North America to earn, without a US-based credit card partner.

I also remain a fan of Starwood Preferred Guest and American Express Membership Rewards. On a 1:1 basis I’ll accrus in the former and then the latter program before I’ll accrue in United or American. And there are several international programs which offer real value, for all the trashing it gets the Air Canada program has a non-insane award chart for Star Alliance redemptions, and All Nippon Airways has some value in its distance based chart. Cathay Pacifiic AsiaMiles can be worthwhile as well, even after last year’s increase in mileage prices. And Alaska Airlines has just a ton of partnerships, incorporating much of the best of both oneworld and Skyteam.

The general principles I use are such:

• Accrue first where the earning bonus is the greatest. I’ll take 8 Continental miles per dollar from shopping before I’ll take 3 United miles per dollar, Continental may be difficult in redemption but double mileage earning means I come out at least even if I have to spend double miles on redemption. And I’ll take 5 Thank You Network Points before I’ll take 3 United miles, but Thank You points are the subject of a different post…

• Accrue second in British Midland, and hope the current value proposition remains in place until I can redeem the miles (don’t save these points, accrue them and use them, but that advice holds for all programs more or less). This is jsut such a hidden gem of a program, so unless I get a huge value out of another program (need the miles for elite status, for instance) I want to earn bmi points.

• Accrue third where the flexibility is the greatest (the ability to transfer points into a variety of programs). Starwood, American Express Membership Rewards, and Diners Club fit the bill (in that order).

• Accrue fourth where the value of redemption is the greatest, the partners take you where you want to go, and availability is good. That’s why I prefer US Airways over Delta, Continental, and Northwest.

How do you value your miles, am I missing something in my evaluation, how should the above framework be adjusted?  Appreciate your thoughts in the comments.

Update August 19: Typo and brain freeze corrected, thanks to the first two commenters

In a continuing series diving into the details of managing credit cards and securing their frequent flyer signup bonuses, Frugal Travel Guy offers suggestions on reallocating credit limits. This can help you get more cards than you’d otherwise be eligible for, and also be a useful tool to preserve available credit while cancelling cards that would incur a fee.

He also makes some suggestions on how to handle no preset limit cards and avoid complications of those cards for your credit report and score.

Expedia is offering $10 off per night on a 2-night minimum stay when booking an Expedia Special Rate Hotel by August 31 for travel through October 31.  Use coupon code WBK10.

Not quite as lucrative as the current Orbitz discounts, however.

I was about 20 minutes late for my hair loss consultation in DC. No big deal from their end. Right into a comfortable waiting room with TV, a few minutes later my consultant talks me through hair loss issues.

She notices that on the section of their form about ‘how I heard about them’ I wrote in Delta. She acknowledged that it’s a great offer, and ‘how excited she is that even with people coming in who might not be candidates now, they’ll be telling their family and friends about it and maybe they’ll come in to learn more’. Way to keep the chin up having to talk to all these bum sales prospects! They really were nice about it.

Doctor comes in to give his pitch as well, about how important it is “to start early” :cough: and how it always frustrates him that most people wait until they’ve lost so much hair before beginning treatment, “now really is the time” :cough:

It was a soft sell, no pressure, amusing really and a rather fun way to earn 20,000 miles. We’ll just have to see whether the miles post Oh, and they give away free prescriptions for propecia, as well as free samples.

Hurry — you only have until August 25th to take advantage of the offer!

One Mile at a Time points out a new change for United’s Global Services members and 100,000 mile flyers — instead of just being able to have one companion sit with them in economy-plus (United’s eection at the front of coach with extra legroom), they can now have up to (8) companions acconmpany them as long as those passengers are all on the same itinerary.

The historical restriction of one companion complimentary in economy plus — which still applies to Premier Associates, Premiers, and Premier Executives — meant that a husband, wife, and child traveling together on the same reservation had to sit in the back with less legroom. Frustrating for the 100,000 mile flyer, for sure. They give their loyalty to United, and when traveling with the family it isn’t recognized.

The most common reaction to this change is “wow, eight, you’ve got to be kidding me!” Roughly speaking, though, I think what United has done is taken off the restriction on companions sitting in economy plus. I’d guess, and I’m no expert on these matters, that nine people is the most that can share a single reservation. Perhaps some readers know more and can correct me in the comments.

Lucky does point out that a couple of United 1K members traveling with the full complement of companions could basically take up the entire economy-plus section of a 737. But this scenario is highly unlikely, 100,000 mile flyers don’t usually fly with that many companions! But they will be able to take their whole families with them into the section on those rare occasions where such members travel with the gang.

It does also mean, of course, that colleagues booking together on the same reservation can now be brought up front by that same 1K member as well. All the 1K members in my office will be the new heroes of the less well-traveled, for sure!

Frugal Travel Guy reminds you not to forget about small business credit cards when signing up for account opening bonuses. We all have small businesses, the cards generally don’t turn up on our credit report (so shouldn’t affect aging or utilization ratios), and can come with additional benefits.

Starwood is offering 500 bonus points per night (not stay!) in September. Registration is required by September 15th.

From Starwood Lurker

This bonus offer is only being shared with FlyerTalkers and emailed to a small group of select SPG members, so feel free to forward it to your friends and family so they can take advantage of it as well.

Well, y’all are my friends and family, and this is a fabulous bonus offer for paid stays.

Meanwhile, Starwood will be launching its fourth quarter promos on September 16th, and Lurker is promising great things.

it’s going to be something big and special called SPG You Choose. Expect more options and greater opportunities for earning Starpoints than ever before. So, bookmark spg.com/choose and check back September 16, 2008 for full details.

There’s a speculation thread on Flyertalk suggesting that the bonus options will be free nights, up to 100,000 bonus points, status, and gift cards.

So all you high-volume Starwood junkies, this should be good, and remember that as always you’ll need to register for the fall promo as well (but not until September 16).

Frugal Travel Guy reports that Restaurant.com gift certificates are on sale 80% off today (Friday) only:

The $25 off coupon is normally $10, but today only 4 AM Central Time to 11:59 Central Time, the coupons will be only $2 each. Good for one year from date of issue. Stock up now for the restaurants of your choice. You must use the coupon code FIRST. This price is good only today 08/08/08 and represents 80% off.

Of course, this is only useful for restaurants you’re reasonably likely to eat at anyway while complying with the gift certificate’s restrictions. But a good opportunity to browse the choices for sure.

Lifted from the comments, , changes to Wyndham’s Best Rate Guarantee aren’t as onerous as they looked at first:

I’m happy to announce that you may recieve 9 BRG free nights per month, due to a loophole in the T&C’s that doesn’t specify the chain. Thus, you may recieve one free Ramada BRG, one free Days Inn BRG, one free Wingate by Wyndham BRG and so forth - good news for us frugal travelers!

Dave shares the news on his Best Rate Guarantee Blog as well.

Delta is offering 1000 bonus miles for online roundtrip ticket purchases through December 31st provided payment is made with an American Express card. The bonus can be earned up to 25 times and registration is required.

Any American Express card will do, it doesn’t have to be a co-branded Delta Amex.

Grabbed from Flyertalk, where credit is given to SlickDeals.net, the following coupons are available on Orbitz for discounting hotel stays:

$50 off 3 nights: 50AFFORB [Exp. 12/31]
$60 off 3 nights: VISAVIP [Exp. 8/15]
$75 off 4 nights: 4ODWR75 [book by 12/31, travel by 2/15/09]
$100 off 5 nights: EQUALITY100 [book by 08/31, travel by 11/15]
20% off:7DAYSALE3 [for travel by 10/31]
$200 off 5 Night stay in Hawaii: ORBHI200 [Exp 8/7]
Tips on combining codes: These codes are not “stackable”. But if you wanted to do a longer trip such as a 7 day trip, do two separate transactions. For days 1-3 use code VISAVIP for $60 off 3 nights. Then for days 4-7 use code 4ODWR75 for $75 off 4 nights.
VISAVIP+4ODWR75 = $135 off 7 nights

Say you wanted to a 10 day trip in Hawaii, again do two separate transactions:
ORBHI200+ORBHI200 = $400 off 10 nights in Hawaii
These are for hotel stay only, not valid on hotel+flight packages.

As discussed in advance at Traveling Better.com, and now officially released by the airline, American is increasing mileage upgrade award copays by $50 effective October 1. As part of this change, even domestic non-Hawaii mileage upgrade awards now have a $50 co-pay.

The change doesn’t apply to 500-mile upgrades (”stickers”). Just the confirmed mileage awards. This makes the electronic “VIP” upgrades given to Executive Platinum 100,000 mile flyers even more relatively valuable, since those don’t incur and cash co-pay. These VIP upgrades are also awarded to non-US AAdvantage members crossing the 1,000,000 miles earned threshold in their account (US members receive 500 mile upgrades confirmable at the standard upgrade window). And they’re given to all members crossing the 2,000,000 mile threshold.

Personally I’m waiting for the other shoe to drop on my program of choice, United, they still don’t have online minimum award booking fees, award fuel surcharges, upgrade cash co-pays, and it’s been a couple of years since they’ve increased mileage redemption levels. Now, in my wonderful dreams they see all this as a competitive advantage and will market themselves as the program of choice. Clearing the fog out of my brain I can only assume changes of some type will be coming there as well.

On Sunday I posted about the Northwest Visa and their 25,000 signup bonus miles offer. Turns out they’re also now offering a no fee the first year version with 20,000 signup bonus miles (in both versions, the bonus triggers after $500 in spend on the card).

Through September 30, Southwest is offering 4 Rapid Rewards credits for new members signing up via a La Quinta hotels promotion.

The founer of La Quinta was an original Southwest board member. Reading Lamar Muse’s autobiography years ago, I seem to recall that the chain got its name because the founder went looking for the cheapest furnishings available. Those had a Southwest motif, thus the need for a Spanish name. Just don’t look it up in the Urban Dictionary.

(Hat tip to Frugal Travel Guy.)

The Northwest Visa Signature offers 25,000 miles after $500 in purchases (the Platinum card offers 20,500).

The annual fee is hefty — $90.00 for the Visa Signature or $55 for the Visa Platinum.

But the miles are easy and it’s nearly your last shot before Northwest Worldperks folds into Delta Skymiles. It’s a 25,000 mile opportunity you won’t have again, a bonus opportunity in addition to the Delta co-branded Amex offerings.

The US Airways Mastercard offer is currently up to 25,000 miles. The offer changes occasionally, this time no annual fee waiver (or 50% bonus on spend). But it’s as rich a first-use bonus as you get, and there’s no minimum spend requirement to get it. Plus the card comes with a club pass and $99 companion ticket that’s actually usable in my experience.

Well worth the $79 annual fee in my view. And there are reports that it’s churnable.

This on top of the 25,000 mile offer for the Bank of America Visa and 25,000 mile offer for the Juniper Bank US Airways Business Mastercard. Now, all come with fees, but that’s 75,000 miles for three credit cards none of which have a minimum spend requirement. And since you can churn Bank of America as well, that’s another huge opportunity.

Sure, US Airways may be making lots of stupid moves lately like charging for coffee and ending elite bonus miles. But the program itself is still useful on the redemption side, primarily for Star Alliance premium class awards. The award chart requires a similar number of miles to the United chart in many cases, and unlike with United the Dividend Miles program doesn’t actively filter out awards being made available by its partners. So if you want that first class award seat on Lufthansa or Europe - Asia on Thai, this is an excellent program to obtain it with.

Delta is offering double miles on mileage purchases through August 30th for first-time buyers. So if you buy 10,000 miles, you get 20,000. That brings down the effective cost of purchasing miles from 3 cents apiece to 1.5 cents. I haven’t ever purchased Delta miles before, so I’m eligible for the bonus, but 1.5 cents is still more cash than I’d part with to acquire Skymiles.

Still, if you need to top off an account for an award this could be just the ticket.

Presumably folks that have purchased miles in the past will be receiving a promo to buy miles again in the near future, since the offer says

Already a Buy Miles customer? Then make sure that you have added an email address in your account profile so you don’t miss out on your upcoming exclusive promotion.

Inside Flyer ran an interview in its August issue with Michael Schutzbank, the Director of Loyalty for Star Alliance.

The news? Mr. Schutzbank says that United Mileage Plus members will soon (again) be able to use their miles for upgrades on participating Star Alliance airlines.

We have made some major enhancements and we believe we have fixed the problems we had with UA, and we are currently testing the system. If it works satisfactorily, I expect UA Mileage Plus members to be able to upgrade in the next six to eight weeks.

This was a feature of the Mileage Plus program and then pulled ‘due to technical difficulties’ and sure the technical challenges are great but at least half of Star Alliance airlines managed to make it work… Once re-implemented, it’ll take close to full fare coach tickets in order to use miles to upgrade, but that’s better than no ability to upgrade on partners at all.

British Airways is offering half-priced redemption on OpenSkies between New York-JFK and Paris-Orly for awards booked by August 22 for travel through October 15.

It’s 50,000 British Airways Miles round-trip business class or 37,500 BA Miles round-trip in Prem+. If you’re like me, you get your BA miles by transferring Diners Club points during 50% transfer bonus periods, which equates to 25,000 Club Rewards points ultimately scoring a business-like product (Prem+) for transatlantic travel. That’s what happens when you start a new airline and loads are understandably light.

So I’ll be looking at whether a weekend in Paris makes sense (I didn’t manage to arrange my schedule for the inaugural flights, alas).

In order to get the discounted pricing you need to book at ba.com and choose JFK and ORY airports.

Starting today US Airways is charging for non-alcoholic drinks. For most people. Those that get confrontational, flight attendants are allowed to give those passengers their drink for free. Just don’t get too confrontational or they may have law enforcement meet your plane on arrival.