Collecting air miles in any frequent flyer program has its benefits — free upgrades, free tickets, access to lush lounges, and better customer service. For years collecting miles was pretty straightforward. You received one point for every mile flown. As you climbed the ranks of the loyalty program, you’d receive bonuses of 150 percent to 200 percent of miles flown. Otherwise, the system was egalitarian. If you got lucky and paid $99 on a discounted fare from Phoenix to L.A. and someone else paid $300 last minute, you both got the same number of miles at the end of the day. That’s no longer the case.
American Airlines will officially join Delta and United Airlines in anchoring their miles collection systems to awarding the miles you receive based upon the price you paid for your ticket. What does that mean? Well, basically, unless you pay full fare for your ticket, you’re outta luck maximizing your mile collection. According to Money, “Passengers who paid $218 for a budget fare on Delta earned between 20 percent and 43 percent fewer miles under the new, cost-based points system. Passengers who paid $751 for a coach seat on the same round trip earned between 97 percent and 176 percent more under the new system.” That’s a massive difference in not only cost but any incentive toward being loyal to a single airline.
So what can we do to maximize our air travel rewards in a world where the deck is stacked in the house’s favor? One trick is to become a member of a partner airline that still utilizes the old-fashioned system. Alaska Airlines is one such carrier. You can then input your frequent flyer number when buying a ticket on a partnered airline, allowing you to collect miles according to your plan and not their plan. This, of course, depends on the partnership’s parameters and will vary.
The best way to maximize collecting miles is to sign up for a co-branded credit card. Several of the cards offer a 50,000-mile award for simply signing up. You’ll be able to collect miles and receive a cash back option, which is usually around 2 percent. You can then use that cash to simply pay for any on-board amenities you wish to upgrade to.
Since flying for equal miles is no longer an option for the major airlines, experts suggest that you consider yourself a “free-agent” traveler and drop the loyalty to a single carrier, especially if you’re an infrequent traveler. Shop the best deals, pay with a rewards credit card, and reap the cash back.
(Via Money.com)
