Well, there has been a fair bit of coverage of the Halloween trick by United Airlines and the early November pain of Delta raising their costs and how they’re devaluing their award charts.
What lessons do we take away so we aren’t burned next they pull a trick like again – or if another airline does the same thing?
- He who writes the rules can change the rules – Simply that United and Delta write the rules regarding earning and burning and can change them at any time.
- Don’t stockpile miles – Seriously, this is a big mistake a lot of us make (and I count myself in those numbers). We all think “we’ll save it for a big trip” or “that’s my retirement travel, except we all know that airlines devalue their award charts more than they improve them. So, earn them – and burn them!
- Work within the timeframes – United gave a generous 90 day grace period to make your bookings at the old rates – use that time effectively. Some airlines (Avanica Lifemiles) devalued their miles schemes overnight,
- Diversify if possible – Like any investment, diversify if possible to dilute your risk – putting all your miles in one basket is a dangerous strategy. It’s the old question of opportunity cost – what is the cost of putting your miles elsewhere
- Don’t over diversify – Having little pots of miles everywhere isn’t helpful when rewards start in the tens of thousands of points.
- Did I mention Earn and Burn? Yes, Earn the miles, and have a plan for burning them.
It’s always painful when an award chart changes in all recognition – no matter how the airlines dress up the change as a benefit to you. The only way to do is try to prepare when an airline… or a hotel pulls this stunt.
That, or switch to cash back credit cards and forgo the miles…
For me, I’ll be doing a lot more diversification as time goes on – having a Oneworld and a Star Alliance programme to hand is useful. Whilst status is important for those of us who fly – for rewards, most of the beanies you get with status are included.
It is also risk – how lucky do you feel?
