Live your best travel life with miles-buying economics.
Good morning class. Suspiciously, there seems to be more of you here today. Have any of you shared your notes on last month’s lecture about getting to Tahiti in Business Class for only 10,000 more miles each way than if you flew in coach? Or was it the previous lecture on simple, no-brainer upgrades to a better class for less? Or it could have been the Hula Loophole Hawaiian junket we highlighted in the very first Upgrade Economics 101 lecture, which focused on value-per-mile.
I won’t do a roll call, but please remember, this is course-only intel.
Now that that’s out of the way, let’s move on. Today we’re going to look at the economics of buying miles when they’re on sale, a longtime Professor Upgrade favorite. I use this strategy all the time, and it’s key to allowing me to live my best travel life. It will be for you too.
April’s Upgrade Economics ExamPLE #1
Fly in Business Class to Europe on Iberia
Instead of Economy for Just $183 More R/T
Economy class from New York to Madrid in July goes for about $1,042 while Business Class costs 68,000 Iberia miles for the round-trip. Amex often runs points-to-miles transfer bonus promotions, and they frequently offer up to a 40% bonus with British Airways, which are transferable to Iberia. So the cost of buying those miles at 2.5 cents each comes to $1,225, after the 40% bonus.
This means you can upgrade from economy class to Business Class for just $183 round-trip, or $92 each way. That’s just $6-per-flight hour.
If you don’t have any BA or Iberia Avios miles, here’s how to get them:
- Iberia is an Amex and Chase transfer partner (or via Capital One’s British Airways partnership).
- You can buy up to 500,000 Iberia or British Airways Avios miles annually via Amex at 2.5 cents each.
- Amex and Iberia or British Airways often have offers with up to a 40% transfer bonus.
- You must be a member of Iberia Plus for 90 days to “Combine my Avios.”
- There is no limit to how many or how often you can transfer Avios.
- Transfers are usually instant.
- Details here on transferring British Airways Avios to Iberia
Comparing Economy Class With Cash
Versus
Purchasing Miles Via Iberia for Business Class
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Strategy Tool Links:
Spanish Fly Part 2: How to Get Even More Value From Iberia’s Cheap Business Class Strategy to Europe
How to Buy American Express Membership Rewards Points
How to Get Around Buying Miles Maximum Limits
April’s Upgrade Economics Example #2
Fly in Business Class on Japan Airlines
Instead of Premium Economy for $234 Less R/T
That’s right, “less.” Flying from New York to Tokyo in Premium Economy costs $2,450 on Japan Airlines. However, you can buy 120,000 American miles at around 1.8 cents each when on sale, which costs $2,216 (including award taxes) and fly Japan Airlines in Business Class for $234 less round-trip. And if you compare that to a regular published Business Class Fare, you’ll save $6,814 round-trip.
Comparing Premium Economy & Business on Japan Airlines
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Strategy Tool Links:
Positioning Flights: FCF’s Mindset on Getting Where the Getting is Good
How Anyone Can Get a $25,100 Japan Airlines First Class Ticket to Asia for $2,880 R/T
April’s Upgrade Economics Example #3
Fly in First Class on Lufthansa
instead of Business Class for $583 Less R/T
Once again, class, you can pay less for flying in First Class than you would in Business Class – an upgrade anyway you look at it. You’ve heard me mention this back in December and again last month here.
The round-trip cost of a First Class Flex award ticket between the U.S. and Europe on Lufthansa is 182,000 miles (91,000 each way). So the cost of buying those miles during their most recent sale, plus taxes on tickets between the U.S. and Europe, is about $1,337 if you book two one-ways (if booked as a round-trip, you’ll pay an additional $636-ish in taxes.) This comes to a total cost of $4,202.
Considering that published Business Class round-trip fares from Chicago to Frankfurt go for $4,785+, you can easily save around $583 round-trip. And if you compare that to a regular published First Class Fare, you’ll save $5,634 round-trip.
We really like the Lufthansa deal not only because it’s cheap but because there’s decent availability on many routes. And on top of that, Lufthansa’s First Class experience is wunderbar – that means “awesome.” Look at that! German 101 thrown in for free.
Comparing Business Class & First on Lufthansa
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Strategy Tools Links:
First Class: How Anyone Can Save Up to 58% from 50+ U.S. Cities to 100+ Cities in Europe
New Lufthansa First Class Ticketing Strategy to Europe from $1,722 Each Way
Class Dismissed!
There you have it, another month of upgrade economics to supercharge your upgrade mindset and keep your wallets happy. If you’re interested in some further reading, here are some selections from our vast upgrade library:
Relevant Reads:
Opportunity Travel: How to Stretch Your Budget Into a Higher Class of Service
The Art of Skipping Stones & What We Can All Learn from the Boise to Budapest Premium Traveler
Stop “Booking Backwards”: Use FCF’s Forward-Thinking Deals to Book Dream Trips Every Time
Bargain Basement. How to Choose Between a Flash Low-Cash Fare and a Discount Mileage Deal?
How to Buy American Express Membership Rewards Points
How to Get Around Buying Miles Maximum Limits
We’re Upgrade Open-Minded, are you?
