FrequentFlier.com: October 2011

Win Your Share of 10 Million Best Western Points

Posted by Tim Winship on October 17, 2011

Enter Best Western's "Fastest Way to a Free Night (and Other Things You Might Like!)" Facebook promotion by October 31 for a chance to win 100 to 100,000 points.

Here's how it works:

Go to Best Western's Facebook page.
"Like" it.
Click on "Get My Points."
Enter your name, email, and Best Western Rewards number.
Click on "Start" to see how many points you've won.

When I entered, on October 17, the promotion dashboard indicated that I was one of 5,005 participants, who had won a combined 872,900 points, or an average of just 174 points each. My own prize: a disappointing 100 points.

On the plus side, the average prize will have to be much larger if Best Western plans to give away the remaining 9.1 million points in the next two weeks.

The Fine Print

All entrants must be at least 18 years of age or older as of the date of entry.
Entrants must be legal residents of the 50 United States (including the District of Columbia) or Canada (excluding Quebec).
There's a limit of one entry per Best Western Rewards member, per email address, per person, and/or per family or household.
Earn an additional 100 points by referring a friend.

Reader Reality Check

How many points did you win?

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Endangered Species: Frequent Flyer Miles for Debit Card Use

Posted by Tim Winship on October 14, 2011

Even before the Durbin Amendment took effect on October 1, it was a foregone conclusion that it would undermine frequent flyers' ability to earn airline miles for debit card purchases.

The amendment to the Dodd-Frank Act restricts the amount large card issuers may charge retailers—so-called interchange fees—when consumers use their debit cards to pay for goods and services.

With their profit margins squeezed, the extra costs of awarding frequent flyer miles had to be pared down or eliminated altogether. (On a related note, some card issuers, including Bank of America, will begin charging consumers a fee to use their debit cards.)

The first shoe to drop was Chase's, which stopped awarding miles for its co-branded United and Continental debit cards on July 12.

Then, late last month came the announcement that Citibank AAdvantage debit cardholders will no longer earn miles for purchases after December 9, 2011.

What's left? Among the larger U.S. programs, just these three:

1. Alaska Airlines Visa Debit Card

3,000 sign-up bonus miles
$30 annual fee
Earn one mile for every $1 spent on Alaska
Earn one mile for every $2 on other spend
Card type: Visa
Issued by Bank of America

2. Delta SkyMiles Classic Check Card

2,500 sign-up bonus miles
$20 annual fee
Earn one mile for every $1 spent on Delta
Earn one mile for every $2 on other spend
Card type: MasterCard
Issued by SunTrust

3. US Airways Dividend Miles Debit Card

3,000 sign-up bonus miles
$30 annual fee
Earn one mile for every $1 spent on US Airways
Earn one mile for every $2 on other spend
Card type: Visa
Issued by Bank of America

While the above are nominally alternatives, they're largely moot—the miles earned for debit card use aren't likely to be significant enough to warrant shifting one's allegiance to a new airline program simply because it still features debit card miles.

And besides, the few debit card options still available today probably won't be around much longer.

I say "probably" because there is a movement in Congress to repeal the Durbin Amendment, which, if passed, would give debit card issuers the financial wherewithal to resume offering frequent flyer miles as incentives.

For now, though, this is the end of an era. But it's hardly a knockout blow for loyalty programs. While it may be a step in the wrong direction for mileage-earners, it's only a half-step.

Reader Reality Check

How much will the disappearance of mileage-generating debit cards affect you?

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Earn 25,000 Bonus Priority Points for Las Vegas Stays

Posted by Tim Winship on October 13, 2011

Vegas? Four nights? 25,000 bonus points?

Read on.

Offer Details

Priority Club members can earn 25,000 bonus points for completing a stay of four or more nights at The Venetian or The Palazzo by December 15.

Qualifying stays must be booked by October 31, either through an InterContinental-brand website or call center. "Guests who book in any other way, including directly with The Venetian or The Palazzo, will be ineligible."

Registration is required.

Deal or No Deal

Las Vegas is a popular destination, and the featured hotels are well regarded.

The bonus isn't keyed to a special rate that might force travelers to pay a premium to earn the bonus points. So the extra points are truly a bonus.

The highest hurdle in this promotion is the minimum stay requirement. Four nights is a bit long for most Las Vegas visitors. But if you're in the market for a shorter Vegas stay, the bonus could be reason enough to extend your trip.

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Hilton Expands Award Options for HHonors Members

Posted by Tim Winship on October 12, 2011

Earlier this year, Hilton soft-launched three new award options for HHonors members: Points & Money Rewards, Premium Room Rewards, and Room Upgrade Rewards.

At the time, not all the new awards were available at all HHonors hotels, and the online booking app wasn't fully up to the task of delivering the new options.

Apparently those issues have been mostly resolved because I received an email from Hilton last night with the following subject line: "Big News from Hilton HHonors - three new ways to use your HHonors points."

Points & Money Rewards

The ability to combine points and cash for room nights has long been a standard feature of other major hotel loyalty programs. So Hilton needed this program feature just to maintain parity with its competitors.

That the company has finally done so is good news for HHonors members. Better still is the fact that the new options provide not just convenience but potentially solid value as well.

Premium Room Rewards

HHonors members can now use points to book premium rooms and suites, with no blackout dates. If available, premium rooms will be confirmed at the time of booking.

As long as a premium room or suite is available at the time of booking, it is yours to book using points. The number of points required to redeem Premium Room Rewards varies by room, hotel, and booking date.

Room Upgrade Rewards

To be clear, these are upgrades, using points, from paid standard rooms to premium rooms or suites.

If there is a premium room or suite available when booking an upgrade, you can use your points to guarantee your upgrade to the premium room or suite with no blackout dates. The number of points required to redeem Room Upgrade Rewards varies by room, hotel, and booking date.

More Flexibility, More Value

To the extent that these options increase the flexibility and value of HHonors points, they're positives for program members.

The price of added flexibility may be the burden of more decision-making. To be sure you're getting the best value for your points, and for your money, you'll have to consider and compare that many more possibilities.

There is one possible negative for elite HHonors members, however. To the extent that they decrease the availability of upgraded rooms, they potentially diminish the ability of elite program members to obtain complimentary upgrades.

Overall, the changes are definitely a net improvement for the HHonors program.

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Southwest Is Giving Away 30 Million Rapid Rewards Points

Posted by Tim Winship on October 11, 2011

What would you do with 3 million frequent flyer points?

Enter Southwest's "Rapid Rewards 30 Million Point Giveaway" promotion by November 13 for a chance to win 3 million Rapid Rewards points plus a check for $13,500 to cover any taxes due on the prize, one of 10 prizes of 100,000 Rapid Rewards points each, and a slew of 20-point prizes for answering Rapid Rewards questions.

The promotion has three parts: a contest (featuring that big prize), a sweepstakes (with the 10 100,000-point prizes), and weekly "challenges" (20 points per correct answer).

The Big Prize

As befits an outsized prize, you'll have to work to earn those 3 million points.

First, complete and submit a "resume" with responses to questions along the lines of, "As Rapid Rewards Chief Reward Officer, my first order of business will be to ..."

If your resume is judged to be among the top 10,000 entries, you'll earn the chance to create a video "showcasing why you would make a great Chief Reward Officer."

A panel of judges will review the videos and pick a winner, based on creativity (worth 34 percent), originality (33 percent), and quality (33 percent).

The Medium-Sized Prizes

If that's too much work, entering the sweepstakes is quicker and easier. Just register your name and Rapid Rewards membership number to be entered to win one of the 10 100,000-point prizes.

The Lesser Prizes

Every week during the promotion period, there will be a new Rapid Rewards-related question or questions. Answer the questions and receive 20 points for each correct response. (There's a video that pops up beforehand that provides answers to that week's questions.)

The Fine Print

Promotion is open only to legal residents of the 50 United States and the District of Columbia who are at least 18 years old at the time of entry.
You must have a Rapid Rewards account number to enter.

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Are Pricier US Airways Miles Still a Buy?

Posted by Tim Winship on October 07, 2011

With its recurring 100 percent bonus on purchased miles, US Airways has made a name for itself as the industry's premier discounter of frequent flyer miles.

Two years ago, when that discounting began, the base price to buy US Airways miles was 2.5 cents each. That allowed Dividend Miles members to purchase 80,000 miles—enough for a business-class award ticket to Europe—for $1,030 plus tax.

And the price to purchase a business-class ticket to Europe? At the time, a ticket on US Airways' Star Alliance partner Lufthansa, between Los Angeles and Paris, would have cost between $3,257 and $8,665.

The economic case was crystal clear: Load up on discounted miles; redeem them for premium-class international tickets; save a bundle.

A Great Deal, Downgrade #1

The value proposition has taken a couple of hits since then.

First, US Airways bumped the number of miles required for European business-class award tickets from 80,000 to 100,000.

And second, the airline increased the cost to buy miles, from 2.5 cents to 2.75 cents apiece.

Factoring in the price changes, the cost to purchase enough miles for an award ticket to Europe increased around 33 percent, to $1,375, not including taxes.

Still, test bookings at the time showed business-class tickets from the West Coast to Frankfurt going for $6,405. Buying discounted miles instead of paying market price for that ticket would have amounted to an eye-popping 78.5 percent discount.

A Great Deal, Downgrade #2

The latest development in this promotional saga is yet another spike in the cost of US Airways miles.

Effective immediately, the price of miles is 3.5 cents each, plus a "tax recovery charge" of 7.5 percent. That's a 27 percent increase from the previous price.

With the new pricing, and assuming US Airways reprises its 100 percent bonus for purchased miles, buying 100,000 miles will cost $1,909, all in.

That's almost double the cost to buy enough miles for an international business-class ticket from just two years ago.

Deal or No Deal

While the cost of miles has soared, the price of tickets has risen as well.

Today, purchasing a business-class Los Angeles - Frankfurt ticket on Lufthansa for travel later this month would cost $7,633.

Even with the less favorable terms, US Airways' mileage discounts can yield significant savings if the purchased miles are used for pricey international tickets.

Yes, you'll still have to wrestle with the capacity controls that make award travel a hit-or-miss proposition.

And yes, there's always the "real" value question: Is a business-class ticket truly worth 10 times as much as a coach ticket?

But even adjusting for the hassle factor, and assuming that business class is somewhat overpriced, the deal can be compelling.

Reader Reality Check

Have you taken advantage of US Airways' mileage discounts? Where did you fly?

With the new pricing, will future discounts still be compelling deals?

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Earn Double Delta Miles, Plus 250 Elite Miles, for Hilton Stays

Posted by Tim Winship on October 06, 2011

Opportunities to earn elite-qualifying airline miles are typically limited to flights and, occasionally, credit card promotions.

This offer features elite Delta miles for Hilton stays.

Offer Details

Between October 1 and December 11, Hilton HHonors members who elect to earn airline miles for stays can earn double Delta miles plus 250 elite-qualifying miles (EQMs) for every stay of two or more nights at Hilton family hotels.

To participate, HHonors members must choose Fixed Miles or Variable Miles, with Delta SkyMiles as their earning preference.

Registration is required.

Deal or No Deal

Double miles or points are on offer from a number of hotel chains this fall, including Hilton's own fourth-quarter promotion.

What makes this offer noteworthy is the addition of EQMs. With one stay generating just 1 percent of the 25,000 EQMs needed for entry-level Silver Medallion status, it will take multiple stays to make any significant progress toward elite status. But for anyone aiming for Delta elite status, every little bit helps.

Reader Reality Check

There are plenty of bonuses on offer for fall hotel stays. Which will you take advantage of?

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Win a Trip for 2 to Paris

Posted by Tim Winship on October 04, 2011

Enter TastingTable.com's "Paris 2011" sweepstakes by October 21 for a chance to win a trip for two to Paris, including air, three nights' accommodation, and a $500 American Express gift card. Approximate retail value: $4,750.

The Fine Print

Sweepstakes is open to legal residents of the 49 United States and the District of Columbia (void in Rhode Island, Puerto Rico, all U.S. territories and possessions and all overseas military installations) who are at least 21 years of age as of September 28, 2011.

Entering requires joining Tasting Table and subscribing to Food & Wine's The Dish newsletter. There's no charge to do either, and you can unsubscribe from both at any time.

Other Posts of Interest

Best Travel Rewards Sweepstakes

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Priority Club Stays Discounted 50% This Weekend

Posted by Tim Winship on October 04, 2011

With Last Minute Reward Nights, Priority Club members save 50 percent on award bookings at select InterContinental Hotel Group properties during the first weekend of every month. Participating hotels are announced on the preceding Tuesday, and rooms at the discounted rates are limited.

Offer Details

This month's Last Minute Reward Nights can be booked today through Thursday, October 6, for stays this coming weekend, October 7 - 9, for 50 percent fewer points.

As of midday on Tuesday, there were 82 participating hotels, including 53 in the U.S. Most were Holiday Inn Express properties, discounted from 10,000 to 5,000 points per night, but there were also some InterContinentals on the list, including the Chicago O'Hare and Houston locations, reduced from 30,000 to 15,000 points per night.

Deal or No Deal

There's no arguing with a 50 percent discount, if you can find a hotel that meets your needs for a weekend stay.

Reader Reality Check

Have you taken advantage of Last Minute Reward Nights?

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Where Do My Miles Go If American Goes Bankrupt?

Posted by Tim Winship on October 04, 2011

Is American Airlines headed for bankruptcy? And if it is, should you be worried about losing your frequent flyer miles?

While the answer to the first question is "maybe," the answer to the second is "probably not."

The airline's deteriorating financial situation has been the subject of considerable recent reporting in the business press, and bankruptcy concerns have the company's stock trading at the lowest prices since 2003, falling 33 percent yesterday.

The problems have been a long time coming.

In 2005, several major U.S. airlines declared Chapter 11 and used bankruptcy protection to renegotiate lower wage-and-benefits packages with their unions. American opted to forego bankruptcy and, as a result, today finds itself with higher labor costs than its competitors.

According to Forbes, American's labor costs account for 31 percent of total costs, versus 22 - 23 percent for Delta and United Continental.

Attempts to negotiate new terms with the airline's unions have been unsuccessful.

Even as its costs remain unsustainably high, with no end in sight to the economy's swoon, there's no reason to expect an uptick in travel demand to push American back into profitability.

Chapter 11 - Protection

With no help on the horizon for either the cost or the revenue side of its business, American could be forced to reorganize under protection of Chapter 11 bankruptcy.

In a Chapter 11 scenario, the airline would continue operations more or less as normal while restructuring its debt and labor agreements.

As has been the case with other airlines in Chapter 11, there would be little or no effect on AAdvantage members' ability to earn or redeem their miles.

It's worth remembering that, for a two-week period in 2005, more than 50 percent of the U.S. airline industry's flights were operated by carriers in bankruptcy.

Chapter 7 - Liquidation

If American's problems prove insurmountable and the airline is forced into Chapter 7, liquidation, the AAdvantage program would almost certainly be sold to another major airline -- it's one of the company's most valuable assets. In that case, program members would find themselves and their miles transferred to another program.

For background, when Eastern Air Lines liquidated in 1991, Eastern miles were honored in Continental Airlines' program. In that same year, when Pan Am succumbed, WorldPass members and their miles were folded into Delta's program.

More recently, when TWA called it quits in 2001 after three Chapter 11 filings during 12 consecutive years of losses, 14 million Aviators members and their miles were transferred into American's AAdvantage program.

Members of smaller programs haven't fared as well. When Midway, MGM Grand, National, and Aloha shut down, miles earned in their loyalty programs simply disappeared.

But American's 66 million AAdvantage members would represent an enormous marketing and sales opportunity for the likes of United, Delta, or US Airways. If they, and their miles, were for sale, one of those airlines would happily buy them. AAdvantage members would then find themselves in a new program, with a different name, but with their miles intact.

Reader Reality Check

Do you expect American to declare bankruptcy?

Are you concerned about the fate of your AAdvantage miles?

Other Posts of Interest

Which Airline Programs Are the Most (and Least) Generous?

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21 posts from October 2011

10/17/2011

Win Your Share of 10 Million Best Western Points

10/14/2011

Endangered Species: Frequent Flyer Miles for Debit Card Use

10/13/2011

Earn 25,000 Bonus Priority Points for Las Vegas Stays

10/12/2011

Hilton Expands Award Options for HHonors Members

10/11/2011

Southwest Is Giving Away 30 Million Rapid Rewards Points

10/07/2011

Are Pricier US Airways Miles Still a Buy?

10/06/2011

Earn Double Delta Miles, Plus 250 Elite Miles, for Hilton Stays

10/04/2011

Win a Trip for 2 to Paris

Priority Club Stays Discounted 50% This Weekend

Where Do My Miles Go If American Goes Bankrupt?