Reward Cards for airfare

[silentg]

Hi Tuggers!
We have a Visa Venture Card for travel miles. We recieved 50,000 air miles which I thought was wonderful, found out that is only worth 500 dollars. We supposedly get 2 miles for each dollar we spend. Have booked flights for June and was told we can use the miles we accumulate between now and then to pay for our tickets. I feel like I was fooled by the math and the glitzy ads for this card. We will use it extensively until we travel, but don't understand how 50,000 air miles converts to 500 dollars?
Still have a lot to learn!
Silentg

 

[DeniseM]

With most airline cards, the Airline Miles that your credit card generates are not actual flight miles - they don't directly apply to the distance that you will fly.

"Airline Miles," are the the currency that the airline uses to indicate how much each flight costs when you use miles instead of cash for payment.

The airline determines the value of their airline miles, and it often varies from season to season. (June is high season and usually requires more miles for the same flight.) *I believe you are retired, so you can probably do better on all your costs by going to Hawaii in Sept. or Oct. instead of high season.

You can sign on to the airline website and see how you can use the miles. When you search for tickets, it will give you the option of using miles, instead of cash.

How many miles did your tickets in June cost?

We have round trip tickets in June on another airline from the West Coast, and they were 80,000 miles for 2 round trip tickets.

 

[sdbrier]

I have that card. The last 4 years I haven't paid for my airfare to Mexico. I use it for everything I can and then when I purchase my tickets I just erase the charge with my miles. Its simple. Purchase eraser converts miles to dollars for you. An airfare purchase of 800.00 dollars takes 80,000 miles. Its great because I can fly any airline I'm just erasing the purchase from the Capital One card. After the charge appears you have 90 days to erase it. Works for hotel stays as well.
It is always best to use purchase eraser as well. A statement credit will only give you half of the value of your miles.

 

[Ken555]

This is exactly why it's important to fully understand the proprietary currency each of these travel providers offers before choosing which to earn. Many people are convinced "double points" means something, but when everything is doubled then it's simply a change of value in the currency and no real difference in application.

I have earned significant airline miles over the years via credit cards. About 12 years ago I changed to hotel credit cards for primary earning since I determined that I derive more value from using points at hotels vs airlines (of course, I still have a lot of airline miles, which devalue regularly).

There are some exceptions, especially if you're willing to churn credit cards to maximize benefits. I really like the Barclaycard Arrival+ card, since it includes a real $400 bonus with signup (and then you can cancel) and that benefit can be used for any travel expense (air, cruise, train, taxi, hotel, etc) - just charge the expense and then go online and apply the points toward the charge. There are others that offer similar benefits.

Ultimately, the banks and travel providers offer credit cards to make money. They control their currency, and may change it at anytime. I try to determine which is most effective for me by normalizing the value of the points earned per dollar spent across the various programs I'm considering. I just completed this review again a few weeks ago once I decided I wanted to stop collecting Starwood points until the uncertainty over the Marriott acquisition is complete. And I now have two new credit cards (for two other hotel programs). What works best for me may not work best for you.

I tend to gravitate toward those programs where I can reasonably obtain a value of ~2.5-4%. Anything less than 2.5% and then a 2% cash back card or the Barclaycard (which is 2.2% for those of us who have it, and 2.1% for new cardholders) is what I would use. Any card that offers an effective 1% (which, I believe, are the majority of credit cards out there) is just silly to pay for, IMO.


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[DeniseM]

Ken - We have quite a few Starpoints generated by our Starwood AMEX, but we don't stay in hotels - we always use them for airfare.

In light of the coming changes, would you transfer the Starpoints to the airline where we know we will be buying airfare in the future?

 

[gmarine]

I like the American Airlines Citi Advantage cards. They work well for me using the miles to fly Business or First Class. There are different cards and each one usually has a sign up bonus of 30K to 75K miles for different spending amounts over an introductory period.

There are also additional ways to earn miles, including dining and bank accounts. You can also sign up for each of the different Citi cards and earn several spending bonuses. This is obviously only a good idea if you pay off your balance each month. We flew first class NY to LAX last year and this summer business/first from NY to Hawaii.
The value isnt as good flying coach but if you want business or first I think you can get great value from these cards.

 

[x3 skier]

Ken - We have quite a few Starpoints generated by our Starwood AMEX, but we don't stay in hotels - we always use them for airfare.

In light of the coming changes, would you transfer the Starpoints to the airline where we know we will be buying airfare in the future?

As in most things, it depends. What I would do is see if I can get the flights I want, put it on hold and then transfer the points to miles since most transfer fairly quick, if not immediately. Since airlines miles are devaluing rapidly, and who knows what will happen when Starwood and Marriott combine, if you can get some flights right now, I would go the book/exchange route, especially if you're planning on American as their devaluation won't happen for a few months, IIRC.

Cheers

 

[DeniseM]

Our airline tickets are already booked for the rest of the year. So I'm just wondering what is the best thing to do with the Starpoints that I have just sitting in my Acct. - in light of the take over.

We don't fly American Airlines - I would probably transfer the Starpoints to Alaska Airlines.

 

[VegasBella]

$500 for virtually no work is actually pretty good.

Is it the deal you thought you were getting, no? But if you'd done more research or read the fine print you'd have understood better.

I have the same card. I like it. I also have other cards that offer me other ways of getting free money.

 

[Elli]

Ken - We have quite a few Starpoints generated by our Starwood AMEX, but we don't stay in hotels - we always use them for airfare.

In light of the coming changes, would you transfer the Starpoints to the airline where we know we will be buying airfare in the future?

I already did that, Denise, as you still get a bonus when you transfer a certain # of miles - they might change that.

 

[silentg]

As in most things, it depends. What I would do is see if I can get the flights I want, put it on hold and then transfer the points to miles since most transfer fairly quick, if not immediately. Since airlines miles are devaluing rapidly, and who knows what will happen when Starwood and Marriott combine, if you can get some flights right now, I would go the book/exchange route, especially if you're planning on American as their devaluation won't happen for a few months, IIRC.

Cheers

Yes, this is what I was advised to do, call the credit card company and use the air miles to deduct from the charges. It was important to us to get the flights we got since we are traveling from East Coast to Hawaii. We are not retired Denise and we made a very nice exchange with a fellow tug member to go to Maui in June. We added a few days in Honolulu and overnights in Seattle. We are flying Alaska Airlines, who were very helpful in booking flights. Now we need info on Pearl Harbor Tours. And car rentals.
Silentg

 

[DeniseM]

In the future - if you can plan your trip for Sept. or Oct.:

-airfare will be lower
-timeshare availability will be greater
-crowds will be smaller

RE: Pearl Harbor - It is a National Park, so there is no tour needed. Just go online, and buy your tickets, and show up:

http://www.nps.gov/valr/planyourvisit/index.htm

This is who we use for Hawaii car rentals:

http://www.discounthawaiicarrental.com

No advance payment, and you can cancel if you find a better rate.

 

[x3 skier]

Our airline tickets are already booked for the rest of the year. So I'm just wondering what is the best thing to do with the Starpoints that I have just sitting in my Acct. - in light of the take over.

We don't fly American Airlines - I would probably transfer the Starpoints to Alaska Airlines.

If it were me, I would wait and see what happens with the Starwood merger. Once that becomes clear, then I would have better info to decide. Since you have no intention of using them for hotel stays, I'd transfer them now so you could take advantage of any flights anytime you might want. The 25% transfer bonus, if it applies to Alaska, could vanish overnight.

Personally, I am using all the miles and points I've accumulated over the years as fast as I can reasonably plan since things are not going to get any better.

Already booked London in First as well as Mexico for this year and as soon as it opens, Australia next year. Those bring me under 500k for the first time since the programs started.

Cheers

 

[gmarine]

Our airline tickets are already booked for the rest of the year. So I'm just wondering what is the best thing to do with the Starpoints that I have just sitting in my Acct. - in light of the take over.

We don't fly American Airlines - I would probably transfer the Starpoints to Alaska Airlines.

If you use American Airlines miles there is currently a 5K mile bonus for every 20K Starpoints transferred. I think it applies to some other airlines as well.

 

[DeniseM]

If you use American Airlines miles there is currently a 5K mile bonus for every 20K Starpoints transferred. I think it applies to some other airlines as well.

We don't fly American at all.

I thought you got the 5K bonus with ALL 20K transfers from Starpoints to airlines?

I am 99% sure that we won't be booking any more flights in 2016, due to DH's work schedule.

 

[lizap]

Could be wrong, but I don't see the Starwood AMEX card going away. It's too lucrative for both parties. Even if there are changes, you'll most likely have notice. I wouldn't be surprised to see Marriott keep the Westin, Sheraton, names...

If it were me, I would wait and see what happens with the Starwood merger. Once that becomes clear, then I would have better info to decide. Since you have no intention of using them for hotel stays, I'd transfer them now so you could take advantage of any flights anytime you might want. The 25% transfer bonus, if it applies to Alaska, could vanish overnight.

Personally, I am using all the miles and points I've accumulated over the years as fast as I can reasonably plan since things are not going to get any better.

Already booked London in First as well as Mexico for this year and as soon as it opens, Australia next year. Those bring me under 500k for the first time since the programs started.

Cheers

 

[gmarine]

We don't fly American at all.

I thought you got the 5K bonus with ALL 20K transfers from Starpoints to airlines?

I am 99% sure that we won't be booking any more flights in 2016, due to DH's work schedule.

Maybe it does apply to all airlines, I was focused on American.

 

[DeniseM]

Maybe it does apply to all airlines, I was focused on American.

It applies to all airlines - if you transfer 20K, you get the 5K bonus.

 

[silentg]

Thanks Denise,
This will probably be our only trip to Hawaii. We went to the Big Island 19 years ago was a work related reward trip for my husband, we enjoyed it very much. This trip we have spaced out flights over the course of 2 weeks. all non stops, looking forward to it!
Silentg

 

[Ken555]

Ken - We have quite a few Starpoints generated by our Starwood AMEX, but we don't stay in hotels - we always use them for airfare.



In light of the coming changes, would you transfer the Starpoints to the airline where we know we will be buying airfare in the future?

Since you don't have any immediate need for award flights, I'm hesitant to transfer to any particular program. SPG won't lose all value, though as others have said it may lose the 20% transfer bonus. Though you don't use hotel awards, I've enjoyed the few nights & flights awards via SPG over the years and think it provides greater value. If you plan correctly, you can get a cat 3 or 4 SPG hotel and 50,000 miles....and then just keep moving the hotel reservation into the future (when you call you can do this) and you may change hotels, etc...until you need it.

FWIW, I just used a bunch of my AA and Alaska miles on business seats to/from Europe for later this year since I know AA, at least, is going to devalue again. I had forgotten that the Citibank AA credit card, which I've had for ~25 years, includes a 10% rebate on award travel up to 10,000 miles per year so the one way business seat I got nets out at just 45,000 miles (I really wanted first class since they're increasing the rates but I couldn't get any availability).

As an aside, here's a trick that's still possible with Alaska miles. I've got a one way business class flight on AA, using Alaska miles, from London to Los Angeles to Kona (LA to Kona in coach) for later this year with a several month layover in LA. It's essentially a London to Kona flight award, and is 50,000 miles for all. This saved me from buying or redeeming more miles to get to Hawaii later this year.


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[DeniseM]

Hi Ken - At this point in our life, we just don't have a use for hotel stays, so I'm mulling over what to do with our Starpoints for now.

 

[johnsontrio]

Hi Ken - At this point in our life, we just don't have a use for hotel stays, so I'm mulling over what to do with our Starpoints for now.

This conversation is of interest to me. Having grown quite weary of Delta's pricing, esp. for our summer trip to Mexico, I started to look at all kinds of options to paying the $700-$800 for each ticket. Now that Southwest services Cancun, I started researching using Southwest to get my group to Mexico in the summer. Reading Flyertalk, I became intrigued by the Companion Pass Southwest offers and starting trying to figure out how it get one this year, to minimize my costs for this year and next year to Mexico.

I decided to apply for the Southwest Chase Credit Card which offers 50,000 Southwest points after spending 2K. I then am planning to transfer 140,000 Marriott Points to Southwest for 50,000 Southwest Points. We seldom use these points and don't stay in hotels that frequently. My thinking is that there is always opportunity to lower your hotel cost, Priceline, Living Social, timeshare stay, etc. but little chance to lower your airfare, esp from Detroit since Delta has a lock on the market, high fares, etc.

This should have my Companion Pass earned by the end of February, once my points from Feb credit card closing hits the account. The pass is then good for this year and next. My question to you seasoned TUGers is, what is the best travel credit card for earning points etc. during the next 2 years with the plan of transferring the points back to Southwest? The Southwest Visa only earns 1 point per $ except for Southwest purchases and they earn 2 points per $. The Marriott Card transfers at a rate of 3:1 so that's not very attractive.

I have read articles that say a Barclay travel card and Capitol One are best general travel cards but I haven't figured out how that would interface with Southwest. Can anyone help me out with this?

 

[Ken555]

Hi Ken - At this point in our life, we just don't have a use for hotel stays, so I'm mulling over what to do with our Starpoints for now.

Amtrak? Likely you'll want to stay with airlines...its just a question of when to transfer and to which airline.


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[DeniseM]

Amtrak? Likely you'll want to stay with airlines...its just a question of when to transfer and to which airline.


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If I transfer the points, it will be to Alaska Airlines. I'm just trying to decide if I should do it before the Marriott take over.

 

[Ken555]

If I transfer the points, it will be to Alaska Airlines. I'm just trying to decide if I should do it before the Marriott take over.

Alaska hasn't, to my knowledge, devalued its program in recent years. I wouldn't be surprised to see it happen sometime soon. But, since you know where it will go and you know SPG won't increase value, then why hesitate to not transfer now?


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