Wednesday, October 27, 2010

Changing Frequent Flier Programs Make Credit Card Rewards Look Better

An increasing number of airline frequent flier mile programs are becoming more complex and less rewarding.  For instance, changes to Delta’s frequent flier program, SkyMiles, has resulted in an increase in fees charged for various situations and generally making it harder to redeem your miles for free flights.  For example, Delta charges:

  • $25 for domestic flight redemption as a “fuel charge” and $50 fuel charges when redeeming your rewards on international flights
  • Fees ranging between $50 and $150 for booking within 21 days of desired flight date
  • An additional $25 fee if you have to fly any part of your trip on another airline for any reason
  • Miles expire sooner

Delta isn’t the only one making it a little harder to use earned rewards.  Citi and the ThankYou points network has made some changes to their rewards program, as well, including:

  • a new fixed flight or variable flight option for redemption.  Fixed flight option requires a set number of miles to redeem for flights, but requires a Saturday night stay in a hotel and booking the flight at least 14 days in advance, while the variable flight option requires more points for the same flights, but does not require the Saturday night stay or booking 14 days in advance. 
  • Variable flight options through the ThankYou Network are actually run through Expedia.com

It may be easier to use credit cards with rewards redeemable for flights rather than stick with a certain airline’s program.  Capital One offers the No Hassle Miles Rewards card that lets you earn points redeemable for flights on any airline.

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