New Airline Reward Changes: Use or Lose Your Frequent Flier Miles
If you have several frequent flier accounts, but have no idea how many miles you have accumulated, it is time to review your accounts. Airlines are shortening expiration periods for inactive frequent flier accounts; if you don't use your miles soon, you may lose them.
Beginning January 31, 2007, US Airways will cut their activity period from 36 months to 18 months (US Airways' policy is not retroactive). United Airlines recently announced that Mileage Plus miles will expire on Dec. 31, 2007 in accounts that have not earned or redeemed miles since July 1, 2006.
One major airline has already made significant cuts in the frequent flier program. As of Dec. 31, 2006, Delta Airlines cut the life of frequent flier miles down from 36 months to 24. Mileage balances of members who had no Delta SkyMiles activity within the last two calendar years (2005 and 2006) expired on December 31.
"This shift in frequent flier miles further underscores the decrease in overall rewards programs that we are seeing in a number of industries," says Bill Hardekopf, CEO of LowCards.com. "We monitor the rewards offered by credit card companies and there are cutbacks in a number of areas, making it more difficult for consumers to reap the benefits they once enjoyed. We are seeing it with hotels requiring more points in order to qualify for a free room, American Express cutting the rewards points in half for everyday purchases, Citi reducing the cashback rewards on one of its cards, and now airlines decreasing the life of their frequent flier miles. Consumers need to be aware that the terms of many reward programs are tightening up and it could be harder to redeem these benefits."
If you are close to losing your miles, here are some ways to show activity in your account:
* Fly on the airline, or one of its partners.
* Purchase something from one of its retail partners. You can find these on the airline's website (make sure you purchase through the website to get the credit).
* If you aren't realistically close to 25,000 miles for a free ticket, use the miles for a hotel room or merchandise.
* Transfer your miles to another frequent flier member.
"The airlines may allow you to reactivate your account for a fee. Most charge you by the mile plus a transaction fee," says Hardekopf. "Unless you are very close to a free ticket, this is not worth it."
LowCards.com ( http://www.lowcards.com ) is a website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over five years.
Beginning January 31, 2007, US Airways will cut their activity period from 36 months to 18 months (US Airways' policy is not retroactive). United Airlines recently announced that Mileage Plus miles will expire on Dec. 31, 2007 in accounts that have not earned or redeemed miles since July 1, 2006.
One major airline has already made significant cuts in the frequent flier program. As of Dec. 31, 2006, Delta Airlines cut the life of frequent flier miles down from 36 months to 24. Mileage balances of members who had no Delta SkyMiles activity within the last two calendar years (2005 and 2006) expired on December 31.
"This shift in frequent flier miles further underscores the decrease in overall rewards programs that we are seeing in a number of industries," says Bill Hardekopf, CEO of LowCards.com. "We monitor the rewards offered by credit card companies and there are cutbacks in a number of areas, making it more difficult for consumers to reap the benefits they once enjoyed. We are seeing it with hotels requiring more points in order to qualify for a free room, American Express cutting the rewards points in half for everyday purchases, Citi reducing the cashback rewards on one of its cards, and now airlines decreasing the life of their frequent flier miles. Consumers need to be aware that the terms of many reward programs are tightening up and it could be harder to redeem these benefits."
If you are close to losing your miles, here are some ways to show activity in your account:
* Fly on the airline, or one of its partners.
* Purchase something from one of its retail partners. You can find these on the airline's website (make sure you purchase through the website to get the credit).
* If you aren't realistically close to 25,000 miles for a free ticket, use the miles for a hotel room or merchandise.
* Transfer your miles to another frequent flier member.
"The airlines may allow you to reactivate your account for a fee. Most charge you by the mile plus a transaction fee," says Hardekopf. "Unless you are very close to a free ticket, this is not worth it."
LowCards.com ( http://www.lowcards.com ) is a website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over five years.
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