Everybody knows there’s no such thing as a free lunch. Free airline seats are another matter.
Since the early 1980s, when airlines started rewarding their customers with “frequent-flier” points good toward free tickets, the idea has really taken off. “One out of every 10 Americans belongs to a (airline frequent-flier) program,” says Randy Petersen, publisher of Inside flier magazine.
And now, it’s not just airlines that bestow points, but credit card companies, car rental agencies, restaurants, even mortgage companies give frequent-flier points to reward spending customers. In fact, “The Miles Guide” from Inside flier magazine now shows some 15,336 ways to earn points (guide available for $19.95; call 800-333-5937).
Not only are there more opportunities to earn points, but points offered by entities other than airlines can usually be redeemed for merchandise, not just airline seats. And considering that the airlines can impose rules on when points expire, and when free seats are actually available, managing frequent-flier miles to work to your maximum advantage takes some sophisticated tactics.
“Some people sign up because they have nothing else to do on a flight, or because their credit card company gives them a membership (in a frequent-flier program) and they don’t do anything with it,” says Petersen.
To get some real mileage out of frequent-flier rewards, be careful about which airline’s program you enroll in. If your dream destination spot is Disney World, for instance, you’ll want to sign up with an airline that has a Chicago-to-Orlando run.
Once you pinpoint a few airlines, then you’ll want to choose the one with a reward program with the most favorable rules. “Not all programs are created equal,” underscores Petersen.
A few years ago, some airlines began imposing expiration dates on points. While that’s a drawback, there’s also a flip side. “Many of the programs used to allow transfeing points (to obtain a ticket) only to family members,” says Petersen. “But today the programs offer free transferability. You can’t buy or sell or barter your miles, but you can give them to anyone you want to.”
So if your points are near expiration and you can’t arrange a trip in time, can you redeem points for a seat certificate and give it to a neighbor with the tacit understanding that he’ll return the favor? “The decision you make when you receive your certificate is your own,” notes Todd Clay, a spokesperson for Delta Air Lines.
But taking out a classified ad to buy or sell frequent-flier seats is illegal according to airline rules, which have been upheld by the courts, says Clay.
Business travelers who constantly crisscross the country can really rack up points in their frequent-flier accounts, but others can, too, by charging purchases. Almost every airline offers a major credit card that allows cardholders to earn one frequent-flier mile for each dollar charged on the card, reports Bankcard Holders of America, a Salem, Va. consumer group.
But “these cards are simply a bad deal for two kinds of people–those who don’t charge a lot and those who carry high balances on their cards,” warns Bankcard Holders.
Infrequent users must pay fees for the cards, which doesn’t justify the few points earned. And those who carry balances pay such high interest charges that they may even do better hunting for bargain airfares than trying to get a free seat.
A 29-page booklet, “Rebate And Frequent-flier Credit Card Cost/Benefit Guide,” which examines how much you can earn versus the actual costs of various credit card programs, is available by sending $5 to Rebate-Frequent-flier Guide, Bankcard Holders, 524 Branch Dr., Salem, Va. 24153; or call 540-389-5445.
Smart card users try to put big expenses on plastic, and then pay those charges off right away. Chicagoan Eileen Morales, for instance, says that she recently charged the costs of her wedding reception, but immediately deducted the expenses from checking. “That way when the bill arrives, we’re already covered.”
Petersen also suggests that it’s smarter to use a card that deposits your points into an account maintained by the card company. Some cards are affiliated with several airlines, he notes, and consumers can elect to transfer points from one airline to another. What’s more, you can also elect to redeem points for a watch or other freebie when points are in accounts maintain by the credit card company. Petersen is less enthusiastic about “direct” credit card frequent-flier programs, where your points are deposited immediately into your airline frequent-flier account.
Most of us not only want a free seat, we don’t want to sacrifice too many points to secure it. The standard “price” for a seat in many programs is 40,000 points, but airlines offer “saver awards” or bargain seats for 25,000 or 20,000 points.
About 10 percent of seats available on flights are earmarked for customers purchasing their spot with frequent-flier points, says Petersen. But during popular travel times, there are blackout dates during which you simply can’t book a seat at the saver or bargain point levels. And even on non-blackout dates, competition for a frequent-flier seat can be fierce.
The most popular destination out of Chicago is Hawaii, notes Mary Jo Holland, a spokesperson for United Airlines. “You should call as soon as you can, and book your travel as soon as possible,” she warns.
One Chicagoan, though, tells of waking up at midnight 300 days before she wanted to book a flight to Hawaii (reservation lines opened only 300 days in advance of the booking date) in order to get first crack at a reservation. “But the computer wasn’t up and running when I called. I called every 20 minutes thereafter, and by 5 a.m. the computer was up, but the seats were already taken.”
Perhaps we’re too enamored with free seats, points out Emily Porter, a spokesperson for American Express. “You have to look at how to get the best value for your points. You might do better redeeming them for a hotel room or other items, and then looking for bargain airfares.”
