7 ms·

Are Frequent-Flier Miles About to Lose Value?

29 points by prostoalex 8y ago

tedunangst 8y ago
Why did I have to read through several paragraphs of speculation and hand wringing to learn that a basic economy award ticket costs fewer miles than regular?
- technofiend 8y ago
  Yeah good question considering they offer less benefit so they should naturally cost less. Seems like something the author could lead with. I subscribed to Scott's Cheap Flights to see some new (to me) parts of the world on the cheap. I'd say 80% of the flight deals are basic-economy-class seats and it's exceedingly rare to see a similar deal for the next fare class up. In other words if the normal difference between basic economy (can't pick your seat, luggage is extra) is $200, the difference between basic and regular is now far more. In fact it's so much more the flyer may as well pay the upcharge to take a bag. I'm not sure if this is airlines dumping basic economy seats because they simply don't sell, or if they're trying to make flyers used to paying for upgrades since it's still all in cheaper than the next fare class. Regardless it makes sense for airlines to price basic economy for the least amount of air miles as the seats again offer the least benefit and the airline will make their money up billing cash rather than miles for the extras.
  - monksy 8y ago
    I wish they wouldn't advertise basic economy tickets. They're a terrible value.
    - sokoloff 8y ago
      As long as customers are shopping on basic price, [un]bundles like Basic Economy tickets will be a thing. For some people, they're exactly what is needed.
      - gok 8y ago
        Well it's also that many business travelers are required by policy to book the cheapest flights
        sokoloff 8y ago
        If your company is sending you Basic Economy, save them the other 75% of the airfare and just don't go.
        Scoundreller 8y ago
        It’s very industry dependent. Sometimes you get paid very well in the public sector with good health benefits, but they’re highly’restrictive about travel expenses because of the poor optics.
      - hakfoo 8y ago
        The one thing I find baffling is the luggage angle. "We're going to charge you $25 for a checked bag" triggered everyone to stuff everything in the universe into a carry-on. Now you end up with half the flight being told "the carry-on space is full, but we'll check the bag for free" at that point. So they're checking bags anyway. I wish they'd let travelers choose either a checked or carry-on bag for free. I honestly don't need my carry-on during the flight, so long as I can stuff a snack and book into an under-the-seat laptop bag, and if I can check the bag instead for free, then I don't have to schlep it across the airport.
        sokoloff 8y ago
        Random trivia: airlines don’t have to weigh your carryon nor count it against performance criteria. Bags that go underneath are weighed and “count” for performance calcs. Obviously, it affects the airplane either way and there are some safety margins built-in, but the airlines have some reason to push people to maximize use of carry-ons.
      - jboles 8y ago
        One annoying thing about basic economy fares is that the airline charges you to carry your own bag on (though I think one or two airlines may have since reversed this policy). It is “enforced” by relegating basic economy fares to the last boarding group, by which time the overhead bins are likely already full. While basic economy + carryon fee is usually still less than regular economy, it feels like the airline is coercing more money out of you to avoid the risk of a bad customer experience.
tinktank 8y ago
It works both ways. If there is less incentive for me to stick with a single carrier, I'll always go for the one offering me the best price, regardless of my status on any given carrier.
- sokoloff 8y ago
  If you fly only a handful of times per year, optimizing for current cost is probably the best plan anyway. If you fly a lot for work, the company may have a preferred carrier (ours is Delta), and the status you accrue from work travel may allow you to book domestic economy and almost always get upgraded to First class. (Basically, unless I’m flying out of Atlanta on Friday eve or into on Sunday PM/Monday AM, I’m >75% for an upgrade.) This makes me fairly likely to choose Delta for personal domestic travel, as long it’s within a couple hundred bucks of another carrier (or unless that other carrier is Spirit and the price difference is less than $500,000...)
deleted 8y ago
[deleted]
40acres 8y ago
I think rewards and upgrades should actually cost less if airlines want to increase brand loyalty. I signed up for Delta's frequent flyer program because i frequently took cross country trips and decided I needed to take full advantage of the fact that only one airline provided a non-stop route from my location to this destination. Being apart of this program led me to choose international flights with this carrier over others because I would earn miles. Once another airline with cheaper fares took on this route I completely abandoned optimizing for miles and simply started optimizing for cost like many travelers do. Miles take too long to earn for travelers who fly less than 5 times a year, especially if these flights are domestic. If I were guaranteed to earn at least enough points for pay for a round trip around 500-750 miles from my nearest airport in exchange for flying with one airline consistently I would definitely consider it.
- Waterluvian 8y ago
  I think they're relying on the theory that a lot of people will drastically over value miles in their mind when calculating which ticket to purchase.
  - 40acres 8y ago
    You're probably right, also, since most travelers optimize for cost it will take longer to earn enough points for substantial rewards. It took me at least a half dozen cross country flights and at least two international flights to earn enough miles for a free one way cross country flight, the benefit just isn't there for normal travelers but I guess this is why it's called a "frequent flyer" program.
    - sethhochberg 8y ago
      I honestly wouldn't bother committing to any single airline until you were traveling enough to qualify for some kind of reward tier somewhere - I go all-in on Delta/Skyteam when I can because the miles I earn get reward status that includes free checked bags and seat upgrades and other perks like that, being able to eventually redeem some miles for flights is an almost inconsequential perk for me. I get waaaaay more value out of buying regular economy tickets and flying (most of the time) in at least economy plus, if not first class on small regional routes on the free upgrades than I could out of tickets purchased on miles. (I'm typically around a couple dozen flights a year, so frequent enough to have basic status, but nowhere near frequent enough to get top-tier business traveler level status...)
whitepoplar 8y ago
To anyone who wishes to simply not have to deal with airline miles earned on credit cards ever again, here's a great option I found: if you have $100k+ across checking + investment accounts at Bank of America + Merrill Edge (their low-cost brokerage arm) you get... 1) 2.625% cash back on BofA's Premium Rewards/Travel Rewards credit card. No messing around with airline miles. Just buy whatever ticket you want. Or, you know, pocket the cash. 2) 5.25% cash back on BofA's Cash Rewards card for "online purchases," up to $2500 per quarter. 3) 100 free trades per month at Merrill Edge. You're not locked into any fund companies and can buy whatever you want. I buy-and-hold Vanguard ETFs. 4) Free BofA checking account, with unlimited ATM rebates + a free safe deposit box. It pays negligible interest, so you may want to use another checking option if you hold larger cash balances, but it's helpful to have around just in case you need a physical branch for anything. It's really a great deal, and it's wonderful to never have to think about the "gotchas" of redeeming airline miles.
- deleted 8y ago
  [deleted]
- lotsofpulp 8y ago
  If too many people start taking advantage of this, they might reduce the benefits, so might be good to keep it to yourself.
  - selectodude 8y ago
    Also you have to have over $100,000 in liquid assets, which isn't a particularly large group of people.
    - whitepoplar 8y ago
      IRAs and taxable investment accounts count toward the $100k. I don't have any cash parked there. They also have levels below $100k, but they're not as good.
      - loeg 8y ago
syedkarim 8y ago
The primary reason I spend more on United (from O'Hare), which is consistently more expensive is the 24-hour change policy. After 50,000 butts-in-seats miles customers are able to change to another flight within 24-hours of the original, free of charge. This has been invaluable over the years, since I can easily add a meeting or buy the cheapest, most inconvenient flight and know (has only failed me once) I can change the ticket later.
- lnanek2 8y ago
  Delta has the same. Free same day confirmed flight changes for open seats, as well as free stand by, once you hit platinum/diamond/gold. I'd often use it to make un-bookable connections where you land and immediately get on a plane instead of the required amount of transfer time, and get faster times to destination than you could officially order, lol. Also often just bought the last flight of the day and went to the airport whenever I felt like it that day and took the next flight out.
- drinkzima 8y ago
  [I believe] the 24 hour change is legally mandated for all the airlines. https://www.consumerreports.org/consumerist/all-major-u-s-airlines-offer-free-cancellations-within-24-hours-except-one/ https://www.consumerreports.org/consumerist/all-major-u-s-ai...
  - monksy 8y ago
    He's talking about 24 hours before the flight takes place. The 24 hr rule for purchases is us law.
  - hueving 8y ago
    Changing your flight within 24 hours of purchasing it is different than changing to a flight within 24 hours of the original. The latter doesn't need to happen within 24 hours of purchase.
  - ubernostrum 8y ago
    As others have noted, this is not the same thing. What the parent was talking about is usually called "same-day change" (abbreviated "SDC"), and is in fact only available free of charge to passengers who have a minimum status level within the frequent-flyer program. Another related perk is the "guaranteed seat" -- the ability to purchase a ticket within 24 hours of the flight, and receive a guarantee that you will have a seat and will not be "bumped" due to overbooking (they'll bump someone else off the flight instead, if it comes to that). Which tends to kick in at the higher status tiers; back in my days of flying too much, I only used that perk once, and the last-minute ticket was expensive, but it was worth it to know I would get where I was going.
chaosbutters314 8y ago
I got for american now. They overbook so much i set my business trips in the morning and happily take a bump for the voucher
- hueving 8y ago
  Delta cut wayyy back on doing it because United pissed in the pool and idiotic casuals took to the streets and blindly blasted the practice of overbooking. Is AA still overbooking with regularity?
  - Brockenstein 8y ago
    All airlines do, because they have decades of passenger data to work with and can estimate how many people won't show up, how many people will take compensation, etc. They have policies in place for every contingency. Passengers don't like the idea of overbooking. But most passengers don't really understand how the sausage is made. And they don't care when the system works for them most of the time, just that it's not perfect, so booooo.
    - viraptor 8y ago
      > the system works for them most of the time That's assuming people prefer having a chance of getting bumped off a flight they booked to paying a few bucks extra and having the same chance of just not getting that ticket in the first place. For me that system never "works for me". Maybe it works for some people, but for others, there's a good reason to hate it.
sys_64738 8y ago
I used to have a lot of air miles with United but they always found a way to increase the threshold just as I was about to get there. It felt like I was constantly swiping at air (no pun). Eventually I used to use my skymiles to buy The Economist but then they stopped letting me buy mag subs and expired all my miles. I don't miss them.
monksy 8y ago
Basic economy is a sign that end airlines are raising process in a drastic way, and not increasing the value with it.
ilamont 8y ago
United's Mileage Plus program is pretty iffy for getting tickets for domestic or international, but one great thing about it is the ability to use miles for goods, gift cards, etc. I've cashed in expiring or insufficient miles more times than I can count for all kinds of useful kitchen items, power tools, and once a pretty nice watch (Citizen Eco-drive). I've found other U.S. airlines are better on reward travel but not as good on other uses ... unless you really like magazine subscriptions.
ubernostrum 8y ago
The value of loyalty programs, for the customer, tends to inversely correlate to the state of the economy. In very broad terms: tourism is a larger part of the travel market than business travel. When the economy is bad, fewer people travel for pleasure, and those who do don't fly as much. So loyalty programs ramp up the rewards for the people who are still flying, in order to hang onto them. Then when the economy recovers and tourism picks up again, there's less need to desperately keep customers by any means available, so loyalty programs start getting slashed. On top of that, at all times the big US airlines tend to hand out redeemable-only miles like candy (elite-qualifying miles are the ones that are hard to accumulate¹), which makes them a heavily inflationary currency and requires jacking up the redemption rates every so often to soften the blow of all those outstanding miles. -- ¹ Airlines in the US issue two types of miles. Redeemable miles, usually abbreviated "RDM" in the frequent-flyer forums, do what the name implies: you can redeem them instead of using cash to purchase a ticket. They offer no other perks. The other type is the "elite-qualifying mile" ("EQM"), which can be redeemed for a ticket but also contributes toward qualifying for some level of "elite" frequent-flyer status with the airline. Elite status is what gets you free upgrades and free checked bags and all the other perks. Elite-qualifying miles, with very few exceptions, can only be earned by actually purchasing a ticket, getting on the plane and flying (sometimes this process is also referred to as "BIS" -- "Butt-In-Seat" -- miles). All the "50,000 miles for signing up!" type offers you see with credit cards are denominated in redeemable miles, for example. If you know your way around the loyalty programs, you can generate hundreds of thousands of redeemable miles per year without too much effort. Achieving 100k elite-qualifying miles in a year, however, is a significant feat and typically qualifies you to the highest public status tier (the big three US airlines each have at least one unpublished tier above that, offered by invitation only to customers perceived as extremely high-value).
neonate 8y ago
https://outline.com/SM59JB https://outline.com/SM59JB
- swang720 8y ago
  Thanks much for this!
jpatokal 8y ago
> Are Your Frequent-Flier Miles About to Lose Value? The answer to this question is always "yes". Quite some time ago, the Economist estimated that the "money supply" of miles expands by 20% every year, which means that existing miles get devalued at roughly the same rate. https://www.economist.com/leaders/2002/05/02/frequent-flyer-economics https://www.economist.com/leaders/2002/05/02/frequent-flyer-...
randomacct3847 8y ago
I’m currently on a two week vacation through Tokyo, Kyoto, Bangkok, and Krabi entirely funded by credit card points, frequent flier miles, and hotel points. I flew Japan Airlines first class to Tokyo, flying their business class back from Bangkok, and staying in some of the best hotels all for almost free (small amount of award tax out of pocket). The points and miles game is still very much alive.

29 points by prostoalex 8y ago

Why did I have to read through several paragraphs of speculation and hand wringing to learn that a basic economy award ticket costs fewer miles than regular?

technofiend 8y ago
Yeah good question considering they offer less benefit so they should naturally cost less. Seems like something the author could lead with. I subscribed to Scott's Cheap Flights to see some new (to me) parts of the world on the cheap. I'd say 80% of the flight deals are basic-economy-class seats and it's exceedingly rare to see a similar deal for the next fare class up. In other words if the normal difference between basic economy (can't pick your seat, luggage is extra) is $200, the difference between basic and regular is now far more. In fact it's so much more the flyer may as well pay the upcharge to take a bag. I'm not sure if this is airlines dumping basic economy seats because they simply don't sell, or if they're trying to make flyers used to paying for upgrades since it's still all in cheaper than the next fare class. Regardless it makes sense for airlines to price basic economy for the least amount of air miles as the seats again offer the least benefit and the airline will make their money up billing cash rather than miles for the extras.
- monksy 8y ago
  I wish they wouldn't advertise basic economy tickets. They're a terrible value.
  - sokoloff 8y ago
    As long as customers are shopping on basic price, [un]bundles like Basic Economy tickets will be a thing. For some people, they're exactly what is needed.
    - gok 8y ago
      Well it's also that many business travelers are required by policy to book the cheapest flights
      - sokoloff 8y ago
        If your company is sending you Basic Economy, save them the other 75% of the airfare and just don't go.
        Scoundreller 8y ago
        It’s very industry dependent. Sometimes you get paid very well in the public sector with good health benefits, but they’re highly’restrictive about travel expenses because of the poor optics.
    - hakfoo 8y ago
      The one thing I find baffling is the luggage angle. "We're going to charge you $25 for a checked bag" triggered everyone to stuff everything in the universe into a carry-on. Now you end up with half the flight being told "the carry-on space is full, but we'll check the bag for free" at that point. So they're checking bags anyway. I wish they'd let travelers choose either a checked or carry-on bag for free. I honestly don't need my carry-on during the flight, so long as I can stuff a snack and book into an under-the-seat laptop bag, and if I can check the bag instead for free, then I don't have to schlep it across the airport.
      - sokoloff 8y ago
        Random trivia: airlines don’t have to weigh your carryon nor count it against performance criteria. Bags that go underneath are weighed and “count” for performance calcs. Obviously, it affects the airplane either way and there are some safety margins built-in, but the airlines have some reason to push people to maximize use of carry-ons.
    - jboles 8y ago
      One annoying thing about basic economy fares is that the airline charges you to carry your own bag on (though I think one or two airlines may have since reversed this policy). It is “enforced” by relegating basic economy fares to the last boarding group, by which time the overhead bins are likely already full. While basic economy + carryon fee is usually still less than regular economy, it feels like the airline is coercing more money out of you to avoid the risk of a bad customer experience.

tinktank 8y ago

It works both ways. If there is less incentive for me to stick with a single carrier, I'll always go for the one offering me the best price, regardless of my status on any given carrier.

sokoloff 8y ago
If you fly only a handful of times per year, optimizing for current cost is probably the best plan anyway. If you fly a lot for work, the company may have a preferred carrier (ours is Delta), and the status you accrue from work travel may allow you to book domestic economy and almost always get upgraded to First class. (Basically, unless I’m flying out of Atlanta on Friday eve or into on Sunday PM/Monday AM, I’m >75% for an upgrade.) This makes me fairly likely to choose Delta for personal domestic travel, as long it’s within a couple hundred bucks of another carrier (or unless that other carrier is Spirit and the price difference is less than $500,000...)

deleted 8y ago

[deleted]

40acres 8y ago

I think rewards and upgrades should actually cost less if airlines want to increase brand loyalty. I signed up for Delta's frequent flyer program because i frequently took cross country trips and decided I needed to take full advantage of the fact that only one airline provided a non-stop route from my location to this destination. Being apart of this program led me to choose international flights with this carrier over others because I would earn miles. Once another airline with cheaper fares took on this route I completely abandoned optimizing for miles and simply started optimizing for cost like many travelers do. Miles take too long to earn for travelers who fly less than 5 times a year, especially if these flights are domestic. If I were guaranteed to earn at least enough points for pay for a round trip around 500-750 miles from my nearest airport in exchange for flying with one airline consistently I would definitely consider it.

Waterluvian 8y ago
I think they're relying on the theory that a lot of people will drastically over value miles in their mind when calculating which ticket to purchase.
- 40acres 8y ago
  You're probably right, also, since most travelers optimize for cost it will take longer to earn enough points for substantial rewards. It took me at least a half dozen cross country flights and at least two international flights to earn enough miles for a free one way cross country flight, the benefit just isn't there for normal travelers but I guess this is why it's called a "frequent flyer" program.
  - sethhochberg 8y ago
    I honestly wouldn't bother committing to any single airline until you were traveling enough to qualify for some kind of reward tier somewhere - I go all-in on Delta/Skyteam when I can because the miles I earn get reward status that includes free checked bags and seat upgrades and other perks like that, being able to eventually redeem some miles for flights is an almost inconsequential perk for me. I get waaaaay more value out of buying regular economy tickets and flying (most of the time) in at least economy plus, if not first class on small regional routes on the free upgrades than I could out of tickets purchased on miles. (I'm typically around a couple dozen flights a year, so frequent enough to have basic status, but nowhere near frequent enough to get top-tier business traveler level status...)

whitepoplar 8y ago

To anyone who wishes to simply not have to deal with airline miles earned on credit cards ever again, here's a great option I found: if you have $100k+ across checking + investment accounts at Bank of America + Merrill Edge (their low-cost brokerage arm) you get... 1) 2.625% cash back on BofA's Premium Rewards/Travel Rewards credit card. No messing around with airline miles. Just buy whatever ticket you want. Or, you know, pocket the cash. 2) 5.25% cash back on BofA's Cash Rewards card for "online purchases," up to $2500 per quarter. 3) 100 free trades per month at Merrill Edge. You're not locked into any fund companies and can buy whatever you want. I buy-and-hold Vanguard ETFs. 4) Free BofA checking account, with unlimited ATM rebates + a free safe deposit box. It pays negligible interest, so you may want to use another checking option if you hold larger cash balances, but it's helpful to have around just in case you need a physical branch for anything. It's really a great deal, and it's wonderful to never have to think about the "gotchas" of redeeming airline miles.

deleted 8y ago
[deleted]
lotsofpulp 8y ago
If too many people start taking advantage of this, they might reduce the benefits, so might be good to keep it to yourself.
- selectodude 8y ago
  Also you have to have over $100,000 in liquid assets, which isn't a particularly large group of people.
  - whitepoplar 8y ago
    IRAs and taxable investment accounts count toward the $100k. I don't have any cash parked there. They also have levels below $100k, but they're not as good.
    - loeg 8y ago

syedkarim 8y ago

The primary reason I spend more on United (from O'Hare), which is consistently more expensive is the 24-hour change policy. After 50,000 butts-in-seats miles customers are able to change to another flight within 24-hours of the original, free of charge. This has been invaluable over the years, since I can easily add a meeting or buy the cheapest, most inconvenient flight and know (has only failed me once) I can change the ticket later.

lnanek2 8y ago
Delta has the same. Free same day confirmed flight changes for open seats, as well as free stand by, once you hit platinum/diamond/gold. I'd often use it to make un-bookable connections where you land and immediately get on a plane instead of the required amount of transfer time, and get faster times to destination than you could officially order, lol. Also often just bought the last flight of the day and went to the airport whenever I felt like it that day and took the next flight out.
drinkzima 8y ago
[I believe] the 24 hour change is legally mandated for all the airlines. https://www.consumerreports.org/consumerist/all-major-u-s-airlines-offer-free-cancellations-within-24-hours-except-one/ https://www.consumerreports.org/consumerist/all-major-u-s-ai...
- monksy 8y ago
  He's talking about 24 hours before the flight takes place. The 24 hr rule for purchases is us law.
- hueving 8y ago
  Changing your flight within 24 hours of purchasing it is different than changing to a flight within 24 hours of the original. The latter doesn't need to happen within 24 hours of purchase.
- ubernostrum 8y ago
  As others have noted, this is not the same thing. What the parent was talking about is usually called "same-day change" (abbreviated "SDC"), and is in fact only available free of charge to passengers who have a minimum status level within the frequent-flyer program. Another related perk is the "guaranteed seat" -- the ability to purchase a ticket within 24 hours of the flight, and receive a guarantee that you will have a seat and will not be "bumped" due to overbooking (they'll bump someone else off the flight instead, if it comes to that). Which tends to kick in at the higher status tiers; back in my days of flying too much, I only used that perk once, and the last-minute ticket was expensive, but it was worth it to know I would get where I was going.

chaosbutters314 8y ago

I got for american now. They overbook so much i set my business trips in the morning and happily take a bump for the voucher

hueving 8y ago
Delta cut wayyy back on doing it because United pissed in the pool and idiotic casuals took to the streets and blindly blasted the practice of overbooking. Is AA still overbooking with regularity?
- Brockenstein 8y ago
  All airlines do, because they have decades of passenger data to work with and can estimate how many people won't show up, how many people will take compensation, etc. They have policies in place for every contingency. Passengers don't like the idea of overbooking. But most passengers don't really understand how the sausage is made. And they don't care when the system works for them most of the time, just that it's not perfect, so booooo.
  - viraptor 8y ago
    > the system works for them most of the time That's assuming people prefer having a chance of getting bumped off a flight they booked to paying a few bucks extra and having the same chance of just not getting that ticket in the first place. For me that system never "works for me". Maybe it works for some people, but for others, there's a good reason to hate it.

sys_64738 8y ago

I used to have a lot of air miles with United but they always found a way to increase the threshold just as I was about to get there. It felt like I was constantly swiping at air (no pun). Eventually I used to use my skymiles to buy The Economist but then they stopped letting me buy mag subs and expired all my miles. I don't miss them.

monksy 8y ago

Basic economy is a sign that end airlines are raising process in a drastic way, and not increasing the value with it.

ilamont 8y ago

United's Mileage Plus program is pretty iffy for getting tickets for domestic or international, but one great thing about it is the ability to use miles for goods, gift cards, etc. I've cashed in expiring or insufficient miles more times than I can count for all kinds of useful kitchen items, power tools, and once a pretty nice watch (Citizen Eco-drive). I've found other U.S. airlines are better on reward travel but not as good on other uses ... unless you really like magazine subscriptions.

ubernostrum 8y ago

The value of loyalty programs, for the customer, tends to inversely correlate to the state of the economy. In very broad terms: tourism is a larger part of the travel market than business travel. When the economy is bad, fewer people travel for pleasure, and those who do don't fly as much. So loyalty programs ramp up the rewards for the people who are still flying, in order to hang onto them. Then when the economy recovers and tourism picks up again, there's less need to desperately keep customers by any means available, so loyalty programs start getting slashed. On top of that, at all times the big US airlines tend to hand out redeemable-only miles like candy (elite-qualifying miles are the ones that are hard to accumulate¹), which makes them a heavily inflationary currency and requires jacking up the redemption rates every so often to soften the blow of all those outstanding miles. -- ¹ Airlines in the US issue two types of miles. Redeemable miles, usually abbreviated "RDM" in the frequent-flyer forums, do what the name implies: you can redeem them instead of using cash to purchase a ticket. They offer no other perks. The other type is the "elite-qualifying mile" ("EQM"), which can be redeemed for a ticket but also contributes toward qualifying for some level of "elite" frequent-flyer status with the airline. Elite status is what gets you free upgrades and free checked bags and all the other perks. Elite-qualifying miles, with very few exceptions, can only be earned by actually purchasing a ticket, getting on the plane and flying (sometimes this process is also referred to as "BIS" -- "Butt-In-Seat" -- miles). All the "50,000 miles for signing up!" type offers you see with credit cards are denominated in redeemable miles, for example. If you know your way around the loyalty programs, you can generate hundreds of thousands of redeemable miles per year without too much effort. Achieving 100k elite-qualifying miles in a year, however, is a significant feat and typically qualifies you to the highest public status tier (the big three US airlines each have at least one unpublished tier above that, offered by invitation only to customers perceived as extremely high-value).

neonate 8y ago

https://outline.com/SM59JB https://outline.com/SM59JB

swang720 8y ago
Thanks much for this!

jpatokal 8y ago

> Are Your Frequent-Flier Miles About to Lose Value? The answer to this question is always "yes". Quite some time ago, the Economist estimated that the "money supply" of miles expands by 20% every year, which means that existing miles get devalued at roughly the same rate. https://www.economist.com/leaders/2002/05/02/frequent-flyer-economics https://www.economist.com/leaders/2002/05/02/frequent-flyer-...

randomacct3847 8y ago

I’m currently on a two week vacation through Tokyo, Kyoto, Bangkok, and Krabi entirely funded by credit card points, frequent flier miles, and hotel points. I flew Japan Airlines first class to Tokyo, flying their business class back from Bangkok, and staying in some of the best hotels all for almost free (small amount of award tax out of pocket). The points and miles game is still very much alive.