Aug

Unraveling the Mystery of Frequent Flyer Miles

By: Justin Zipprich Categories: Airline Miles

Air Miles

Unless you’ve been off the grid, you’ve probably heard of Frequent Flyer Programs. Nearly every major airline has a Frequent Flyer program which rewards customers with free air miles for each flight they take. The concept of air miles is a relatively simple one: acquire miles, and redeem them for airline tickets. However, how can you acquire these miles, what exactly is their value, and how can they save you money? In this article, we’ll explain the advantages of miles and figure out how best to use them.

How Does One Acquire Miles?

Traditionally, there are a few ways to acquire miles. The first method is by flying. The second is via credit card purchases. Credit Cards allow you to earn reward points with your purchases, which you can exchange for miles on a 1 to 1 ratio. These methods are straightforward but slow. You can also purchase miles directly from the airlines. This method, though quicker, can cost a lot, and comes with restrictions on how many miles you can buy, and how often.

The Choice: Buy Miles or an Airline Ticket

This question raises multiple views and is the object of hot debate among travellers; some think these miles are invaluable whereas others are against using them. Let’s solve this issue in a logical way, and the best logic involves clear numerical examples.
First, let’s see if it’s wise to use miles on domestic flights. At the normal assumed value of 0.02 cents per mile, a domestic ticket within the United States requires 25,000 miles and this amounts to $500. Most airlines and travel websites offer tickets which are a lot cheaper. In this case, it is clearly not worth using miles to fly.

Now consider International travel, this is where the real magic of air miles comes into play. In this case, purchasing air miles for Business and First Class can save you up to 70% off on the published airline price. Let’s play it by the numbers: Again, the average cost of a mile is assumed as 0.02 cents. Now a business class ticket to Europe requires 100,000 miles. Thus this amounts to roughly $2,000. The published fare of most airlines of business class tickets to Europe is usually somewhere between $3,500 and $5,500 – it is apparent that buying miles, in this case, is much cheaper. Now consider a business class ticket to Asia: A ticket from New York to Hong Kong can cost you anywhere from $8,000 to $10,000. So, let’s apply a similar calculation: The ticket requires 145,000 miles and at the assumed rate of 0.02 cents a mile, we get a price tag of $2,900-$3,000. See the difference?

The Judgement

So having gotten a broader picture on the cost aspect of air miles we can finally give a verdict. Bear in mind that airline taxes still have to be paid. So should you buy miles or the ticket? It’s easy to decide. Check for fares online on websites like Expedia and Kayak, and then compare these prices with the cost of the miles you are going to purchase. If the ticket is cheaper buy it, if buying air miles costs less then that’s the way to go. Though if there’s not much difference between the cost of the ticket and miles, it’s suggested that you go with the ticket and save your miles for later.