United Miles Buy Beer

0.7c per mile is not the best value available in frequent flyer programs.  Even with recent devaluations, 6c per mile is possible without too much effort.  To earn that high valuation, one needs 100,000 miles or maybe more.  For those who earn from one or two trips a year, such a large balance is inconceivable. 1,430 miles is achievable, but award tickets usually start at 12,500 for a domestic one way flight.  Rather than save for a few years, infrequent flyers can cash in their miles for a beer at Newark airport. This is a great way for people extract quick value from their flights. Just because it isn't the best value, doesn't mean it's not good value.

At Airport Merchandise Awards

Lufthansa has been doing this for years with their WorldShop in Frankfurt Airport. They have good selection in store and let you order online for in store pickup. They'll also let you pay with a mix of miles and Euros. United isn't close to Lufthansa, but it's a start.

I Love Lufthansa

New British Airways Awards Travel Strategy

British Airways miles flew me to Easter Island, Santiago, and Montevideo on one award ticket from Miami for 80,000 miles and $64 in business class.  Their award chart had amazing values.  British Airways also thought it was amazing and changed it to remove any outstanding values. They went from a region based chart to flight distance based pricing.  Last week they changed their prices again, but only for premium cabin travel.  Business class is 50% more expensive and first class is 33% more expensive. Flying coach is the only economical use for British Airways miles now. I plan to use my remaining British Airways miles on short distance awards to maximize their value.  It was a fun program while it lasted.

Best Use of British Airways Miles

Check Your Award Reservations For Changes

I booked an award reservation for a friend earlier this year for travel in September and forgot about it.  I recently was on United.com looking at my reservations and pulled up this award flight to find there was a change.  United downsized a CRJ-700 to a CRJ-200 and my friend lost his first class seat. The reservation message wanted me to click ‘Continue’ to accept the change and move on.  I didn’t want to accept the change and instead clicked to the home page and looked for a better option.  I was able to find a first class seat on an Air Canada E175 and called United to make the change.  The agent found the award seat and updated the reservation.  My friend now has a larger seat, TV, meal, shorter lines, and free drinks.  Just because United updates your reservation, you don’t have to accept it.  The agents can be very flexible too because it was an airline initiated reservation change.

Air Canada A319 in Denver

Use British Airways Miles On The Ground

British Airways miles (Avios) can now be used to buy experiences on the ground.  There are dozens of tours, excursions, boat rides, and other fun activities you can do around London and pay for with miles.  Denver is less lucky and only has airport transfers available.  These could be good value too at 1-2c a mile in the few I priced out in cash.  Even better, there are no fuel surcharges or UK air duty taxes to pay on these redemptions (taxes and fees turn a free round trip to London into a $400+ trip).  Avios can also be used for car rentals and hotels, but that isn’t terribly noteworthy.

Speedbird 787

United Mileage Plus Merchandise Awards

There's no such thing as a bad award.  Well, as long as you are receiving more value from your miles than you expected.  Since the value of a mile different for each person (here’s my perspective on the value of a frequent flyer mile), there’s no global minimum value of a redemption for it to be good or bad.  Miles are like money and people won’t spend either on what they view as a bad value.  Some bloggers are adamant that merchandise awards are bad value and should be avoided.  They are less valuable than award flights in most cases, but that shouldn’t be taken as being a bad value. 

United Merchandise Awards Mailed Catalog

A colleague spent 50,000 United miles on a $400 watch and was pleased with the value he got from his miles.  Yes, he could have used 50,000 miles for two award tickets, each worth more than $400, but he would never buy just two tickets because he heads a family of 6 in Salt Lake.  Since his oldest kid is 6, he needs to fly direct to keep his sanity, so he flies Delta.  A nice watch sounded like a much better idea than a connection in Denver.  In absolute terms, not the best value, but in his mind it was an outstanding deal.

Update: United ran a sale on a Tumi carry on bag and I bought one.  I'm delighted with the bag and the value I received from my miles.

British Airways or American Airlines Messed Up Avios

I'm not sure who's fault this is, but something is broken.  American Airlines is listing first class on a CRJ-700, a two cabin airplane, as first.  British Airways' Avios is charging it as first class on a three cabin airplane.  This award should be priced at the business class rate and be 1/3 cheaper (18,000 miles rather than 27,000).  One or the other is messing up and destroying the value of the Avios program.  Since I need to blame someone for my unnecessary frustration, I'll say it is BA's fault for not pricing awards correctly.

British Airways Pricing American Awards Too High

Around the World with US Airways Dividend Miles – Award Booking Tips

US Airways will let you fly around the world for 120,000 miles in First, 90,000 in Business, and 60,000 in coach.  The award is just their basic North America to Northern Asia, but you are allowed to route via the Atlantic and the Pacific.  You also get a free stopover (stay longer than 24 hours) in a Star Alliance hub along the way, or somewhat out of the way.  Complete Dividend Miles rules are here.  I was able to book from Denver to Tokyo with a stopover in Helsinki with all segments in business class.

Star Alliance Air Canada Jet

The first step in booking is to find the flights.  I have some time off from class in summer, wanted to go somewhere new in Scandinavia, and see Japan.  Narrowing down the possible destinations will shorten the search process and focus your attention.  I found the list of Star Alliance hubs and started looking for flights. 

The two best search tools are United.com and fly-ana.com (you need to join Mileage Club to search).  I start with United and use ANA only if I’m stuck.  United has a much simpler interface and shows more routings.  When searching on United, make sure that you are only looking at Star Alliance airlines, Aer Lingus will show in United results, but can’t be booked through US Airways.  If Aer Lingus or other airlines outside the Star Alliance keep filling the search results, switch to ANA.

Lufthansa 747

The best way to build a trip is segment by segment; being too ambitious can overwhelm the search engine.  First open a spreadsheet to track all the available flights and see all the options in one place.  From there start searching for the beginning and ending flights, NRT-DEN and DEN-European gateway city.  Flying from Japan, I wanted a lay flat bed, ANA preferred over Asiana over United.  I found several options on ANA’s new 777-300s, a pair on Asiana, and a lot on United.  To Europe I preferred Swiss (flat bed) over Lufthansa (angled) over SAS (angled) over United (flat).  I’ve flown United business class, the seat is very good, but the service and food are awful.  There were a few Lufthansa and SAS flights available, so things are looking up.  Intra-Europe connections are plentiful and have great availability if going to capital cities.  The more out of the way, the harder it is to find flights (Berlin easy, Mehamn, Norway rather difficult).

Once the bookend flights are found, it is much simpler to find the middle flights (dates and connecting cities are limited).  Through sheer force of clicking, I found several options to stop in Geneva, Oslo, Stockholm, and Helsinki.  Getting from Europe to Japan had very limited availability.  I did not want to fly Edelweiss Air (Swiss’ low cost airline with poor seats and bad service) or Air China (subpar seats and an evening arrival).  Lufthansa had a few flights, Austrian had one, and Turkish Airways had a lot from IST-NRT (but almost no options from my stopover cities to IST).  The date and timing has me on Lufthansa; I would prefer Austrian or Swiss, but the availability didn’t permit it.

US Airways, Making This Trip Possible

I found the flights I wanted and then reran the searches segment by segment before I called US Airways.  This was important because my A380 seat from FRA disappeared, so I had to find a replacement.  Luckily an A340-600 out of MUC had space and I could find a flight from Helsinki to Munich.

The reservation I had planned, DEN-FRA-HEL-MUC-NRT-LAX-DEN, met the rules and the flights were available.  US Airways agents don’t consistently interpret the rules.  If the agent says NO, just apologize, say you need to reevaluate the trip, hang up, and try again later.  I called to make the reservation and things started well.  I reached an agent quickly, gave her the flights one at a time, all were found, and the agent thought the reservation looked good.  Next the agent has to contact the rate desk to validate and price.  I was on hold, so didn’t hear what was discussed.  The agent came back and said I had to spend less than 24 hours in Tokyo or I couldn’t book the ticket.  I said I would re-plan off the phone and call back later.  I thanked her for her time, asked to have the reservation placed on hold (she did, thereby saving my flights and making it easier the next call).  This was a clear misunderstanding of what a stopover is by the rate desk.  To avoid getting the same guy again, I waited 10 hours before calling back.

United Airlines 737 Collection

My next call lasted 75 minutes and at least 60 of those were spent on hold.  I still had a positive experience thanks to the very bubbly and excited agent I spoke with.  She was new, so the US Airways culture hasn’t sunk in yet.  She quickly found my reservation, I explained what I was trying to book, she validated that it looked right to her, and then got on the line with the rate desk where things got weird.

After a few minutes on hold, I was told I could not book my trip because I was backtracking.  To make a valid reservation, I had to keep going east (my original direction of travel).  After a quick check of Google Maps, Oslo was my only option between FRA and MUC.  I quickly found flights to OSL on United.com, keeping my long haul segments in place, and she tried the rate desk again.

When my agent came back on the line, she said the rate desk now said I had to stop in a hub.  I explained both OSL and HEL are hubs for SAS (Scandinavian Airlines System) according to StarAlliance.com.  She confirmed this and went back to play rate desk lotto.

She returned excited and told me that my original itinerary with a stop in Helsinki was validated and priced out to $130.  I jumped with joy, gave her my Amex number, she booked the ticket, gave me a confirmation number, and we parted ways.

The moral of this story is twofold; first find your flights before calling, second, be patient and persistent.  

Update 2/1/15:
US Airways' new oneworld award chart isn't as generous.  It's 110,000 miles to North Asia now and 100,000 to Europe.  Also oneworld carriers have fuel surcharges (British Airways is the worst) that are added to the price of the award.