Stop Earning Those Miles

Upgrades on United, my company’s preferred carrier, are nearly impossible to get, and booking free flights for the family costs 60,000 miles per ticket in order to go when we want to. Then I stumbled across the UAL store, something of a “green stamps” redemption center only for Mileage Plus credit card holders and premier level flyers. I’ve since “purchased” a mega BTU stainless steel BBQ and two Denon AVRs (one in the $1,200+ retail price category). I would have been hard pressed to justify the near $3,000 cash expense for these goodies, but for miles, a slam dunk. Yet the street price for many of the goods is far less than the miles exchange. I’ve chatted with other United flyers who have gazillions of miles in their bank, they ask, “what else are you going to do with them?”

– Dave Bartell, Los Gatos, CA

Redeeming miles for anything other than premium class travel is a BIG waste, as you’ve discovered. My advice is simple: If you have a gazillion United miles, and it never has seats to the destination you want when you want them, STOP earning United miles! Start earning in another program—or two other programs—preferably with a United partner so you can earn miles even when flying United. –M.B.

The Starpoints Advantage

I subscribed to your newsletter earlier this year and am just getting going on this whole process. I just applied for an Amex Starwood card to get into the Starpoints program. Here is my question: We live near Sacramento, so flying internationally from SFO is pretty convenient. Getting to LAX isn’t too bad, either. I suspect that I should join a couple of frequent flyer programs in order to use the Starpoints. Which programs do you suggest I join besides United, which is big in SFO?

– Tim Strand, Sacramento, CA

To get the full benefit of the Starpoints Strategy, you should join several airline loyalty programs. That way you can pounce on mileage award seat availability. Just keep in mind that it can take up to four weeks for the Starpoints to transfer.

Your first step should be to look at the routes you fly most often. That’s where having the Starpoints will yield savings (see “Value of a Mile,” FCF May 2006). Next determine which carriers flying those routes offer the best award opportunities. Then I’d make sure to have just enough miles in the account at all times so you don’t have to be hamstrung by the transfer time.

Here’s a scenario to show you what I mean. Let’s say you often fl y San Francisco-London. You should transfer 40,000 Starpoints into American miles, which with the 20% bonus is enough (50,000) for an upgrade from economy to Business Class, 20,000 into British Airways (25,000), and 35,000 to 50,000 into Virgin Atlantic (40,000 to 60,000). With this thinking, you’ll have three times the award chances than you would if you threw in with just one carrier.

Alternatively, work with a carrier that will allow you to hold an award reservation while you transfer the points. (More on this coming soon.) Worst-case scenario: You just dump miles into your preferred carrier’s program, reaping Starpoints’ 25% bonus, and hoping the award will be available. Think twice before relying on United. It is one of only a few Starpoints partners that offers a poor exchange rate: It takes two Starpoints to get one United mile.– M.B.

The Glass is Half Full

I look forward to your publication with more anticipation than I do for The New Yorker. Among the ideas I picked up from FCF was to join both the Cathay Pacific and BA loyalty programs and to use the BA credit card. However, I have had no luck in booking First Class mileage seats on Cathay for February ‘08 to Bangkok, even though my agent reports no First Class seats have been sold on the flights we want. (We’re headed for Myanmar.) We had the same lack of success with United for SFO to Sydney 12 months in advance, ending up using upgrades to Business instead. What am I missing in getting the First Class award seats? I was successful with your Mexicana scheme for First Class to Buenos Aires, but have struck out twice since.

– Martin Zankel, San Francisco, CA

Congratulate yourself on your successes, don’t dwell on your losses: That’s the way you have to look at it. FCF is about increasing your odds and you’ve done that. Don’t feel bad about Cathay Pacific, as it is just about impossible to get award seats in First Class. Why not try Business Class? Or, try flying via Tokyo on American or Japan Airlines, a new Oneworld member. Also look at other US gateways and try making a connection. If all else fails and Cathay is your carrier, try the 2-for-1 with the Amex Platinum card. Otherwise, I’d lose the BA credit card, as I don’t see anything special in it for earning miles, beyond the nice sign-up bonus. Diners Club is the better card to carry, as it allows you to transfer points into other programs and gives an annual 50% transfer bonus (see “In Brief”).– M.B.