Through May 31, 2013, US Airways is offering up to a 100% bonus on the purchase of Dividend Miles. Rather than offering a straight 100% bonus they’re offering tiered bonuses, with the 100% bonus only going to those that purchase at least 30,000 miles:

  • Buy/gift 5,000 – 9,999 miles, get a 25% bonus
  • Buy/gift 10,000 – 19,999 miles, get a 50% bonus
  • Buy/gift 20,000 – 29,999 miles, get a 75% bonus
  • Buy/gift 30,000 – 50,000 miles, get a 100% bonus

For a bit of context, in January they offered a 100% bonus on purchased miles targeted exclusively to those that purchased miles in 2012, in February they offered a targeted 100% promotion as well, in March they offered a “mystery” bonus of up to a 100%, and in April they offered a 50% bonus on shared miles. So this promotion is actually the first non-targeted buy miles 100% bonus promotion of the year.

Anyway, through this promotion miles can be purchased for ~1.88 cents each including tax. You can purchase a maximum of 100,000 miles through this promotion (50,000 base miles and then 50,000 bonus miles), and Dividend Miles accounts have to be at least 12 days old to be eligible for this promotion.

This can be a great deal if you have a specific mileage redemption in mind, and can be an even better deal if you’re just topping off a mileage account. Flying from the US to North Asia via Europe remains just 90,000 miles in business class, so if you outright buy those miles through this promotion you’ll pay $1,700, which is really good. See this post for basics on redeeming Dividend Miles and this post for how to plan a 90,000 mile business class award to Asia via Europe.

It looks like US Airways has raised the change fees on their revenue tickets. Domestic change fees are going to $200 (from $150). Change fees for travel to Europe and the Middle East are staying the same at $250, while they’re increasing to $300 for travel to Brazil.


New change fees


Old change fees

Obviously this is to match United’s $50 across the board change fee increases last week, though I do find it rather curious that they raised the change fees for Brazil but not for Europe and the Middle East. At this point I think it’s safe to say that American will do the same, and Delta won’t be far behind either.

These change fees are ridiculous, but then again that’s the risk of booking a non-refundable ticket. And it’s something the airlines can easily get away with, since very few people choose carriers based on change fees, and those that do probably don’t choose based on what the change fees are, but rather whether the airline charges one or not. In other words, everyone knows Southwest for not charging change fees, but who knows Alaska for “only” charging a $75 change fee for changes made online, which is half of what the legacies have consistently charged up until last week?

If I had to guess, I’d say we’ll see both American and Delta match before the weekend.

Through April 30, 2013, US Airways is offering a 50% bonus on transferred hotel points, with the exception of Starwood. Here’s the list of eligible transfer partners:

Registration is not required, though the promotion is only valid for a single points transfer. It’s sad that Starwood is excluded, because that could have been a very good deal. 20,000 Starpoints ordinarily gets you 25,000 US Airways miles, so with the 50% bonus that would have been 37,500 US Airways miles per 20,000 Starpoints. They offered that exact promotion last year, so it’s sad to see Starwood excluded this year.

So which transfers make sense under this promotion?

With Priority Club 100,000 points would ordinarily convert into 20,000 US Airways miles, though with this bonus you’re looking at 30,000 US Airways miles. While it isn’t a rate at which I’d necessarily proactively transfer points, it’s also not a bad value if you have more Priority Club points than you know what to do with, or are a bit short on US Airways miles.

This would also be a good promotion through which to take advantage of Marriott’s Flight and Hotel Packages, whereby you can redeem points for a combination of miles and a set number of free nights.

So while I don’t think I’ll be taking advantage of this, it’s not a bad way to rack up some extra US Airways miles either if you’re a bit short…

(Tip of the hat to Gary)

US Airways is almost always offering a bonus of some sort on the purchase or transfer of miles. Historically the most common promotion is a 100% bonus on the purchase of miles, making them about 1.87 cents each after taxes. The best bonus they’ve offered in the past year was back in October, when they offered a 100% bonus on shared miles. Sharing miles costs a penny a piece, plus a $30 transaction fee and 7.5% tax, for a total of 1.14 cents per mile. That was an amazing offer, and unfortunately the only time in the past year we’ve seen something like it.

Well, it appears as if for the month of April US Airways is offering a 50% bonus on shared miles, up to 25,000 bonus miles.

So maxing our this promotion you’d pay $567.50 to transfer 50,000 miles, which would generate a bonus of 25,000 miles, or 2.27 cents per mile. That’s certainly not a rate at which I’d proactively purchase miles, though if you’re looking to consolidate miles it’s not a half bad deal either, if it brings your mileage balances up to a usable amount.

US Airways is offering 5,000 bonus miles after every three Shuttle segments through May 31, 2013. This includes their nonstop service between Boston (BOS), New York (LGA), and Washington (DCA). You can earn a maximum of 50,000 bonus miles through this promotion. Registration is required using promotion code SH5K, and bonus miles should post one to two weeks after travel is completed. It’s worth noting that even itineraries involving other segments are eligible, so if you’re flying from Tampa to Boston via Washington DCA in both directions, the two segments between Washington DCA and Boston would be eligible.

(Tip of the hat to Gary)

Introduction
Credit Card Points
Airline Miles
Hotel Points


Welcome to what will undoubtedly be the most controversial part of this series. There’s nothing quite as fun as valuing airline miles on the internet, because I’m about to be called an idiot by people that value their miles somewhere between 0.5 and 12.5 cents each. So I’ll once again make reference to my disclaimer in the introduction of this series by saying that these are my subjective valuations based on what I typically redeem my miles for, and based on what I value those flights at (not their retail value, because in virtually all cases I wouldn’t otherwise pay for first or business class). I’ve also added several programs below that I didn’t value last time, which I hope you guys find useful.

Since there’s a lot of information below, I figured I’d summarize my valuations upfront, which are as follows:

  • Air Canada Aeroplan – 1.3 cents/mile
  • Air France Flying Blue – 1.1 cents/mile
  • Alaska Mileage Plan – 1.6 cents/mile
  • American AAdvantage – 1.8 cents/mile
  • AviancaTACA Lifemiles – 1.2 cents/mile
  • British Airways Executive Club – 1.3 cents/Avios
  • Delta SkyMiles – 1.3 cents/mile
  • Korean Air SkyPass – 1.4 cents/mile
  • Singapore Airlines KrisFlyer – 1.6 cents/mile
  • Southwest Rapid Rewards – 1.4 cents/point
  • United MileagePlus – 1.8 cents/mile
  • US Airways Dividend Miles – 1.6 cents/mile
  • Virgin America Elevate – 2.0 cents/point
  • Virgin Atlantic Flying Club – 0.8 cents/mile

With that in mind, here are my explanations:

Air Canada Aeroplan – 1.3 cents/mile (previously 1.3 cents/mile)

Going back a couple of years Air Canada Aeroplan miles were hands down the single most valuable mileage currency out there. Then after a devaluation of their award chart and the addition of fuel surcharges for travel on most of their partner airlines, they took a big hit.

There’s still some value in their program, though. Business class between the US and much of Europe, for example, costs just 90,000 miles roundtrip, and you’re allowed either one stopover and one open jaw or two stopovers. If you travel on Brussels, Swiss, United, and US Airways there won’t be any fuel surcharges either. So while Aeroplan miles aren’t what they used to be, they are still a good option for those with a Membership Rewards balance they’re looking to redeem for premium cabin travel.


Great use of Aeroplan miles without fuel surcharges

Best credit card(s) for earning Aeroplan miles: American Express® Premier Rewards Gold Card, which offers 3x points on airfare, 2x points on gas and groceries, and 15,000 bonus points for any year in which you spend $30,000 on the card. Also the Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card, which offer one Starpoint per dollar spent on all purchases, and two Starpoints per dollar spent at Starwood properties. Points can be transferred to Aeroplan at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 Aeroplan miles per dollar spent.

Air France Flying Blue – 1.1 cents/mile (not previously rated)

Flying Blue miles can be quite valuable in a limited set of circumstances. You can redeem them for one-way travel on Delta at half the price of a roundtrip (which you can’t do directly through Delta’s program), and as long as you’re originating in the US there are no fuel surcharges. Furthermore, they can be redeemed for travel on Aeromexico without fuel surcharges between the US and South America, which is another great option given how much award space they release. They even have lower pricing than Delta in many cases. For example, roundtrip business class on Delta between the US and Israel costs just 100,000 miles, assuming there’s award space at the saver level (while Delta would charge 120,000 miles for the same award).

These miles have also become more valuable for travel on Air France. Previously Air France gave their own Flying Blue members and Delta SkyMiles members access to the same saver award space. Nowadays they only give Delta access to a part of that inventory, to the point that they’ve blocked off Delta award redemptions for travel on Air France for just about the entire summer. So while Flying Blue does charge hefty fuel surcharges, it may just be the only practical option for redeeming on Air France.


Flying Blue business class award space between Washington and Paris for this summer (none of the space is being released to Delta SkyMiles members)

Though a word of caution — Flying Blue’s call center is indescribably useless and excruciatingly painful to work with. You’ve been warned.

Best credit card(s) for earning Air France Flying Blue miles: American Express® Premier Rewards Gold Card, which offers 3x points on airfare, 2x points on gas and groceries, and 15,000 bonus points for any year in which you spend $30,000 on the card.

Alaska Mileage Plan – 1.6 cents/mile (previously 1.5 cents/mile)

Mileage Plan is one of those programs that’s sooo close to being awesome. They partner with many airlines across multiple alliances, so the flexibility of the miles is great, in theory. Unfortunately they have some rules that really prevent these miles from being more valuable. One of those rules is that you can’t mix partner airlines on an award ticket. This can be really tough to do given that multiple airlines are needed to get to some destinations, and that can require multiple award tickets. Furthermore as of now they don’t allow one-way awards on partner airlines, though rumor has it that one way awards will soon be possible on select partners.

That being said, Alaska recently unveiled their mileage redemption chart for travel on Emirates, and while it’s not amazing, it certainly adds some value to the program. First class to the Middle East or India is 180,000 miles roundtrip, while first class to Africa or Asia is 200,000 miles roundtrip.


Emirates onboard shower suite

Those are decent redemption rates though they aren’t amazing, Then again it’s one of Emirates’ few mileage redemption partners, so it’ll have to do. So I think the miles deserve a bit of a boost compared to last year, though I really can’t value them at over 1.6 cents each.

Best credit card(s) for earning Alaska Mileage Plan miles: Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card, which offer one Starpoint per dollar spent on all purchases, and two Starpoints per dollar spent at Starwood properties. Points can be transferred to Mileage Plan at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 Mileage Plan miles per dollar spent.

American AAdvantage – 1.8 cents/mile (previously 1.8 cents/mile)

The value of American miles remains unchanged for me over the past year, which is a great thing. For me their most useful single partner is Cathay Pacific, which continues to release a good amount of first class award space between the US and Asia. Not only is it a great value at 135,000 miles roundtrip for first class, but they release quite a bit of availability both 11 months out and within a couple of weeks of departure.


Five Cathay Pacific first class award seats available on a single flight

American miles are also great for travel to South America given both American’s route network and their partnership with LAN. Star Alliance and SkyTeam can’t even begin to compete on that front. And their partnership with Etihad is also great for travel to the Middle East and India.

Their other partners certainly come with some weaknesses, though are still useful in many instances.

American also has a distance based award chart which can be extremely lucrative for travel to multiple destinations, and is both one of the best kept secrets and values in the airline industry.

Malaysia Airlines recently joined OneWorld which opens up a lot of new destinations using American miles, and Qatar Airways is expected to join the alliance next year. These partnerships really solidify the value of American miles, and are really narrowing the gap between Star Alliance and OneWorld.

Best credit card(s) for earning American AAdvantage miles: Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card, which offer one Starpoint per dollar spent on all purchases, and two Starpoints per dollar spent at Starwood properties. Points can be transferred to AAdvantage at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 AAdvantage miles per dollar spent. For the sign-up bonus it’s also worth considering the Citi AAdvantage Visa Card, Citi AAdvantage American Express Card, and Citi AAdvantage Business Visa Card, each of which offer 50,000 miles after spending $3,000 within four months.

AviancaTACA Lifemiles – 1.2 cents/mile (not previously rated)

Last year a lot of attention was given to the Lifemiles program, given that AviancaTACA joined the Star Alliance. They have a rather unconventional award chart for a non-US frequent flyer program, if for no other reason than that they don’t impose fuel surcharges on award redemptions. What’s also quite interesting is that as long as you have 40% of the miles needed for a redemption in your account, you can purchase the remaining miles for 1.275 cents each.

So why am I not valuing these points more highly? Because of their ridiculous policy to not allow cabins to be mixed on an award ticket. If you book a first class award you can’t have any segments on the ticket in business or coach class, for example. So if you want to book a first class award and live in a small city with single cabin service you’re out of luck. Or if you’re connecting somewhere within Europe that’s only served by an aircraft with business class and coach… no soup for you! If they’d change that silly restriction I’d say their miles would go up in value by about 25%, but as it stands I just find these miles kind of impractical to redeem.

Best credit card(s) for earning AviancaTACA Lifemiles: Lifemiles Visa Signature Card, which offers one mile per dollar spent, and one additional mile per dollar spent on AviancaTACA.

British Airways Executive Club – 1.3 cents/Avios (previously 1.1 cents/Avios)

About 18 months ago British Airways devalued their award chart, which was a big blow to the value of their Avios. Instead they now operate exclusively on a distance based award chart, which I’ve come to appreciate more by the day.


Avios award chart

I’ve found myself redeeming Avios lately more than any other currency, because there are certain markets in which they’re invaluable. A one-way coach award for a distance of less than ~650 miles costs just 4,500 Avios one way, which is an incredible value, whether you’re trying to get from New York to Toronto or Lima to Cuzco.

My major frustration with Avios redemptions to Europe was that at the time they imposed fuel surcharges for all their transatlantic flights, though nowadays they don’t impose fuel surcharges on Aer Lingus, Air Berlin, or Iberia if you play it right.

So while Avios typically aren’t the best currency to have for aspirational redemptions, they’re extremely practical to have for everyday redemptions.

Best credit card(s) for earning British Airways Avios: British Airways Visa Signature® Card, which offers 1.25 British Airways Avios per dollar spent. For more flexibility the Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card are also good, given that they offer one Starpoint per dollar spent on all purchases, and two Starpoints per dollar spent at Starwood properties. Points can be transferred to British Airways at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 Avios per dollar spent. Lastly, another great option is the American Express Premier Rewards Gold Card, which offers 3x points on airfare, 2x points on gas and groceries, and 15,000 bonus points for any year in which you spend $30,000 on the card. Points can be transferred 1:1 to British Airways.

Delta SkyMiles – 1.3 cents/mile (previously 1.1 cents/mile)

It shocks me that I’m saying this given the lack of Air France business class award space using SkyMiles, though I think the value of SkyMiles has actually gone up lately due to a variety of factors. Generally speaking SkyTeam gets all the “sloppy second” airlines, so for the most part the airlines you can redeem your miles on aren’t all that exciting. Furthermore you can’t redeem your SkyMiles for international first class, so for me that makes SkyMiles less valuable than AAdvantage and MileagePlus miles right off the bat.

But we’ve seen some improvements lately that make SkyMiles much more attractive, including:


At least nine China Southern business class award seats available on a flight

So I do think the above has made SkyMiles more valuable. In my opinion they’re the most valuable mileage currency for travel to Australia and Tahiti (given that they partner with both Air Tahiti Nui and Air France), and have also become extremely competitive to Asia.

Best credit card(s) for earning Delta SkyMiles: American Express Premier Rewards Gold Card, which offers 3x points on airfare, 2x points on gas and groceries, and 15,000 bonus points for any year in which you spend $30,000 on the card. Points can be transferred 1:1 to Delta SkyMiles.

Korean Air SkyPass – 1.4 cents/mile (not previously rated)

When most people think of SkyTeam frequent flyer programs Delta SkyMiles comes to mind. But if you’re like me and like to redeem your miles for international first class, it’s Korean Air’s SkyPass program you should be looking at.

They have reasonable first class redemption rates between the US and Asia. For example, flying to Japan or Northeast Asia costs just 160,000 miles roundtrip. What’s actually best about them is the amount of first class award space they consistently release. It’s common to see 2-5 first class award seats per flight, which isn’t the case for most airlines.



Tons of first class award space!

They also allow one way awards for travel on Korean Air at half the cost of a roundtrip, though for partner airlines roundtrip travel is required.

The one major downside of Korean Air is the booking process, which is unnecessarily complicated and restrictive. Still, for first class on SkyTeam airlines, this is the way to go.

Best credit card(s) for earning Korean Air SkyPass miles: Chase Sapphire Preferred® Visa Card, which offers double points on dining and travel and a 7% annual points dividend, the Chase Ink Plus® Business Card and Chase Ink Bold® Business Card, which offer 5x points on office supply stores, cable, TV, phone, and internet, and 2x points on gas and hotels, and the Chase Freedom® Visa Card, which offers 5x points in rotating quarterly categories.

Singapore Airlines KrisFlyer – 1.6 cents/mile (not previously rated)

The past year has been amazing for the value of KrisFlyer miles. Amazing. Early last year Singapore began making first and business class award redemptions in their new products available at the saver level. It’s ridiculous it took so long, given that their new product was nearly fleet wide, yet you couldn’t redeem for it at the lowest level since they were trying to “protect” the cabins. It wasn’t until early last year that they actually allowed KrisFlyer members to redeem for it at the saver level.

Then late last year they began allowing saver award redemptions in Suites Class, which was almost completely off limits with miles up until that point. Singapore Suites is probably the most aspirational airline product out there, so being able to redeem miles for it at a reasonable cost is awesome. Last May I wrote a post explaining all the basics of redeeming KrisFlyer miles for travel on Singapore Airlines (though note at the time Suites Class redemptions weren’t permitted, so that’s not reflected in the post).


Singapore Airlines Suites Class

Singapore has rather reasonable premium cabin redemption rates, and while they impose fuel surcharges, they’re quite mild. For example, San Francisco to Hong Kong roundtrip in first class costs 140,250 miles plus ~$371.30 in taxes and fuel surcharges.

Given that booking through KrisFlyer is one of the only ways to redeem miles for travel in Singapore Airlines longhaul premium cabins, I’d say these have quickly become one of my most coveted mileage currencies.

Best credit card(s) for earning Singapore Airlines KrisFlyer miles: American Express Premier Rewards Gold Card, which offers 3x points on airfare, 2x points on gas and groceries, and 15,000 bonus points for any year in which you spend $30,000 on the card. Points can be transferred 1:1 to KrisFlyer.

Southwest Rapid Rewards – 1.4 cents/point (not previously rated)

Southwest has a revenue based frequent flyer program, where the cost of an award ticket is directly tied to the cost of a paid ticket on that flight. For “Wanna Get Away?” fares you can book an award ticket at the rate of 60 points per dollar — that’s a rate of ~1.66 cents per point. By booking an award ticket vs. a revenue ticket you’re giving up at least six points per dollar that you’d otherwise earn, which knocks about 10% of the value off. I also think it’s worth knocking a bit more off since redemption rates are higher for “Anytime” and “Business Select” fares, which brings me to my valuation of 1.4 cents per point.


Rapid Rewards redemption chart

Best credit card(s) for earning Southwest Rapid Rewards points: Chase Sapphire Preferred® Visa Card, which offers double points on dining and travel and a 7% annual points dividend, the Chase Ink Plus® Business Card and Chase Ink Bold® Business Card, which offer 5x points on office supply stores, cable, TV, phone, and internet, and 2x points on gas and hotels, and the Chase Freedom® Visa Card, which offers 5x points in rotating quarterly categories.

United MileagePlus – 1.8 cents/mile (previously 1.8 cents/mile)

Fortunately nothing major has changed with United since the last time I valued them, so I think they’ve maintained their value pretty well. I still love United miles for how generous their routing rules are, for the fact that they allow one stopover and two open jaws on a roundtrip award ticket, and for how reasonable the change fees and policies are on award tickets compared to virtually any other airline.

United’s partnerships have more or less remained the same since last May, with the exception of Qatar Airways, which they lost as a partner. Some aspects of using United miles remain frustrating — Swiss doesn’t release any first class award space at all, Singapore doesn’t release any longhaul first class award space, and Lufthansa only releases first class award seats at most 15 days out, and I’ve found as of late they’re getting stingier and stingier even at that point. So that really does limit the aspirational redemptions using United miles, at least for those that need to plan in advance.


You can still redeem for Lufthansa first class within 15 days of departure

On the plus side a lot of Star Alliance carriers have improved their business class products lately, making for some attractive business class redemption opportunities.

So not only does United have amazing airline partners, but their miles are just so easy to use, between a (mostly) functional website, computers that automatically price awards (rather than leaving you at the mercy of clueless agents), extremely reasonable fees, and generous routing rules.

Best credit card(s) for earning United MileagePlus miles: Chase Sapphire Preferred® Visa Card, which offers double points on dining and travel and a 7% annual points dividend, the Chase Ink Plus® Business Card and Chase Ink Bold® Business Card, which offer 5x points on office supply stores, cable, TV, phone, and internet, and 2x points on gas and hotels, and the Chase Freedom® Visa Card, which offers 5x points in rotating quarterly categories.

US Airways Dividend Miles – 1.6 cents/mile (previously 1.5 cents/mile)

US Airways, US Airways, US Airways… what can I really say? I love ‘em with a passion. I hate ‘em with a passion.

There’s no doubt with the upcoming merger my valuation will be changing soon, though as of now they still have a gem of an award chart. For 90,000 miles you can fly from the US to Asia via Europe as I recently did, and that’s an amazing value. In a way flying business class is more desirable lately, as we’ve seen more and more Star Alliance airlines introduce fully flat business class products.

Even though they got rid of off peak business class awards to Europe I still think the value of their miles has gone up, as we’re seeing more of a trend in Star Alliance whereby airlines release business class award seats instead of first class space.


Austrian’s new business class

Best credit card(s) for earning US Airways Dividend miles: Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card, which offer one Starpoint per dollar spent on all purchases, and two Starpoints per dollar spent at Starwood properties. Points can be transferred to Dividend Miles at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 Dividend Miles per dollar spent. It’s also worth considering the US Airways Premier World MasterCard® for the sign-up bonus, given that this card probably won’t be around for long given the upcoming merger.

Virgin America Elevate – 2.0 cents/point (not previously rated)

The past couple of weeks I’ve been focusing quite a bit on the value of Elevate points, as they have some really unique and lucrative partner redemption opportunities.

Virgin America has a revenue based frequent flyer program, meaning redemptions costs for travel on Virgin America are based on the revenue cost of a ticket. Regardless of what the fare is, each Elevate point gets you roughly 2.2 cents towards the cost of a ticket. Factoring in that you’re not earning the usual five Elevate points per dollar spent on airfare when redeeming points, I think it’s fair to value Elevate points at about 2.0 cents each.



Correlation between paid ticket and redemption ticket

In addition to that there are some amazing partner redemption options which have fixed pricing, especially for travel on Hawaiian, Singapore, and Virgin Atlantic. The problem is that the “gems” on the chart are very limited in scope. For example, the Hawaiian award chart is most valuable for travel between the west coast and Hawaii, while the Singapore award chart is most valuable for travel on longhaul flights in coach. Certainly not a program that’s for everyone, though definitely a goldmine for some.

Best credit card(s) for earning Virgin America Elevate points: Virgin America Visa® Signature Card which offers one point per dollar spent. In comparison Membership Rewards points only transfer to Virgin America at a 2:1 ratio.

Virgin Atlantic Flying Club – 0.8 cents/mile (not previously rated)

There’s no polite way to say this, these miles are bloody useless. While British Airways has partner redemptions on which you can not only get decent mileage costs, but also not pay fuel surcharges, that’s not really the case with Virgin Atlantic.

You can redeem miles for travel on Virgin Atlantic with massive fuel surcharges, and those partners without fuel surcharges really aren’t a very good value.


High taxes, fees, and fuel surcharges for travel on Virgin Atlantic

One bright spot to their program has been that you can convert miles into Hilton HHonors points at a 1:2 ratio, but now that Hilton has destroyed the value of their program, the above valuation of miles is more reflective of my reduced valuation of Hilton points.

Best credit card(s) for earning Virgin Atlantic Flying Club miles: Virgin America Visa® Signature Card which offers one point per dollar spent. In comparison Membership Rewards points only transfer to Virgin America ta  2:1 ratio.

The Starwood Preferred Guest American Express Personal Card and Starwood Preferred Guest American Express Business Card offer one Starpoint per dollar spent on all purchases, and two Starpoints per dollar spent at Starwood properties. Points can be transferred to Virgin Atlantic at a 1:1 ratio, and for every 20,000 points transferred you get a 5,000 point bonus, meaning you’re essentially earning 1.25 miles per dollar spent. Lastly, another great option is the American Express Premier Rewards Gold Card, which offers 3x points on airfare, 2x points on gas and groceries, and 15,000 bonus points for any year in which you spend $30,000 on the card. Points can be transferred 1:1 to British Airways. The Virgin Atlantic American Express is also worth considering for the sign-up bonus.

Conclusion

This has been a great couple of years for the value of airline miles. Without exception my valuation of miles has either remained the same or gone up from last year, which is extremely rare. Unfortunately the same can’t be said for hotels, which I’ll be valuing in the next installment. I definitely wouldn’t take the current mileage values for granted, as I wouldn’t be surprised to see a similar slaughtering of airline award charts next year as we’ve seen with hotel charts this year.

So, release the hounds, I wanna hear what you guys think. Agree or disagree with the above valuations?

(In the interest of full disclosure, some of the above links earn me a referral bonus, and all are for the best available offers for each card — thanks for your support!)

Me: “I’d like to change the return portion of this ticket to instead depart Paris on May 15 instead of May 13, please.”
Agent: “So you’re wanting to change your return point from Charles de Gaulle to Paris?”
*picking my jaw off the floor*
Agent: “Do you happen to know the airport code for Paris?”
Me: “Yes, it’s C-D-G.”
Agent: “Thank you, I always forget that one.”

Rather than offering a straight 100% bonus on purchased Dividend Miles this month, US Airways is offering anywhere between a 25% and 100% bonus on the purchase of miles through March 31, 2013.

Just log into your Dividend Miles account here and you’ll get a prompt telling you which bonus you’re eligible for.

My account was only eligible for the 50% bonus.

While another account I manage was eligible for the 100% bonus.

US Airways miles ordinarily cost 3.5 cents per mile to buy, plus a 7.5% excise fee, for a total of ~3.76 cents per mile after tax.

That means the new all-in costs factoring in the bonuses are as follows:

With a 25% bonus: 3.29 cents per mile
With a 50% bonus: 2.82 cents per mile
With a 75% bonus: 2.35 cents per mile
With a 100% bonus: 1.88 cents per mile

Of those bonuses I’d say the only amount at which it can make sense to proactively purchase miles is with the 100% bonus. US Airways seems to offer a 100% bonus on purchased miles on an almost monthly basis, so if you’re not eligible for this promotion I’d suggest waiting till next month in hopes of a 100% promotion.

And if you can redeem your miles for a 90,000 mile business class award between the US and North Asia via Europe, I’d say it’s almost always an amazing deal to purchase US Airways miles.

To Brazil:

US Airways has published some business class fares in the ~$2,000 range, which is much lower than usual. US Airways seasonally flies their Airbus A330-200 aircraft between Charlotte and Rio de Janeiro, featuring their Envoy Suite. It’s worth noting, however, that between March 29 and October 26 they fly their 767 on the route, which feature a substantially worse business class product, so you’ll want to avoid it if possible.

I’ll be going to Rio de Janeiro soon on a $400 ticket upgraded to business class so don’t have much of a use for this, but it is a great fare.

It’s especially good given that there’s no minimum stay requirement and that it’s valid year round, so you can travel in peak season.

The best place to look up availability is on ITA Matrix. Enter the origin and destination, your date flexibility, and select business class, and it will return options in a calendar view.

American has published similar fares out of several markets, though unless you can route on their new 777-300ERs I’d say US Airways’ new Envoy Suites are a much better product.

From Brazil:

US Airways has published some even better fares between Brazil and New York/Los Angeles.

The fare between Brazil and New York is ~$1,645 on US Airways connecting in Charlotte.

The fare from Rio de Janeiro to Los Angeles is also ~$1,645, which is an even better value given how much more flying it is.

On a mildly unrelated note, am I the only one that finds Rio to be the most frustrating and expensive hotel market in the world? Yes, even much more so than Singapore?

(Tip of the hat to The Points Guy and Fabio)

I’ve redeemed a lot of miles in my day, and sometimes I can redeem millions of miles at a time without a hitch or anything entertaining. And then you have some days where you seem to end up with the call center agents that could double as (inadvertent) comedians. Case in point today, as I was trying to hold an award reservation with US Airways from San Francisco to Auckland.

For the first agent I explained I wanted to book an award ticket from San Francisco to Auckland. She responded with “what was the name of that airport?” I responded with “Auckland — alpha kilo lima is the airport code.” She responded with “I want to see what region that’s in, could you spell it out for me slowly?” I did that, and once we built the whole itinerary she said “oh shoot, hold on a second, I have a pop up on my computer that says ‘fatal error.’ I’m going to need to reboot.” She puts me on hold for five minutes and then comes back and builds the itinerary again. After she puts me on hold for a few more minutes she claims the routing isn’t valid. Why? “Cause ya can’t do all that travel on one ticket.” After a while I realized that this was the type of agent that wanted to find everything wrong with a ticket rather than actually try to make it work, so I hung up and decided to call back.

The next agent was as sweet as could be, though also lacking just a bit in the geography department. She was perfectly happy letting me feed her the flight numbers, and once the reservation was complete she said “let me check with a supervisor to be sure this is valid, because I’m not sure you can do this on a domestic award.” I asked for clarification, and she said “well I’m not sure you can go via Tokyo and Bangkok when traveling between San Francisco and Auckland, that’s a lot of travel for a domestic award.” Despite feeding her the flight numbers and airport codes, it appears as if she was a little bit confused between Oakland and Auckland. Surprisingly enough they’re not the same place. And the fact that she even let me talk her through a routing connecting in Asia if she thought this was an eight mile trip across the bay really confuses me.

After she realizes her mistake she tries to put it on hold, and says “shoot, my computer just sent me a message saying ‘fatal error,’ I’m going to have to reboot.” Seriously, twice in a row? What the heck?

Though the icing on the cake was when she read me back the itinerary and on the return flight from Asia to the US said “I’m not sure if that flight lands the same day or next day. I forgot whether there’s time travel in that direction or not.” I said that the arrival was probably the same day, and she said “oh, that makes sense. I once did a round the world trip, but I did it so I kept traveling in the direction without time changes.”

RIP US Airways. It’ll be a sad day when their computers do all their thinking for them.

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