What Is A Mileage Run?

I was at brunch recently with some friends of my girlfriend and someone asked what I do for fun. I mentioned that I recently took a trip just for the frequent flyer miles.  They looked baffled and then asked if I was serious (legitimate question, I frequently use deadpan humor).  I said I was serious and that I flew to Puerto Rico six times last year and never left the airport.  I then proceed to explain my logic for mileage runs.

United 737's in Houston

It's not the destination that matters, but the number of miles accumulated.  There are two types of miles, elite qualifying miles (EQM) and redeemable miles (RDM).  Elite qualifying miles only count for status and reset every year.  Redeemable miles are used for award travel and don't expire as long as your account is active.  I enjoy 1K status on United because it gets me upgraded on 90%+ of my United flights and waves a number of fees (Three free checked bags at 70lbs each, free award ticket changes, free phone reservations, free same day confirmed flight changes, etc.).  To attain this status, I need to fly 100,000 paid miles on United and their partners (US Airways mostly for me).  Since my job doesn't have me traveling more than 30,000 miles a year, I need to make up the difference.

US Airways CRJ-900 at CLT

I close the gap by buying tickets.  Home for Christmas, a trip to Long Beach for the Grand Prix, and a few other leisure trips doesn't get me much closer to 100,000 miles.  To close the gap I need to fly just to acquire the EQM's I need.  The destination doesn't matter, just time and money.  For time, I don't want to take any PTO to do this, so I am stuck with Friday night, Saturday, and Sunday.  Money factors in both the cost per EQM and hotels.  Hotel stays tend to ruin the math, so I try to overnight in air.  To find the lowest fares, I spend a good bit of time searching ITA Matrix.  I like to find fares in the 5c -6c per EQM range.  My Puerto Rico trips last year were about 3.8c per EQM so I booked every weekend last September.  I'm less gung-ho on good, but not great deals. 

United Airlines A320 at LGA

People still think you are crazy.  No matter how rational your explanation, no matter how much the other person smiles and nods, they will still think you are crazy.  It's ok.  This game isn't for everyone, if it was you could never find an award seat or cheap fare.

Feeling Aspirational

I can't wait to fly a narrow body Austria Airlines jet again.  The service is great, even in coach, and either the departure city or destination city will be fun, but probably both will be cool.

Austrian Jets at VIE

What Does Your Ticket Pay For?

Everyone seems to be making money off airline tickets, except for airlines.  Here's a good graphic to illustrate.

Source: Airlines for America

King Nut Airline Products

I love airline food. As a kid I liked the free food in coach. The Pigeon Strudel I had on a Lufthansa flight was the best meal I had anywhere in 2011. Even snacks are good.  US Airways has a tropical fruit crunch that is outstanding.  I enjoyed it so much, I purchased 150 pouches from their supplier King Nut.  I also got two bags of mini pretzels and two bags of the new American Airlines mix (each bag has 25 pouches).  They ship UPS ground from Cleveland, so it's economical to place large orders.  

Airline Snacks

$400 Cash Back From Chase

Note: I am not compensated for this post or for Chase referrals.

I signed up for the Chase Sapphire card and the 40,000 point bonus for spending $3,000 in three months (I have a business trip coming up, so that will help).  That's enough points for $400 in rewards or 40,000 United, Southwest, Hyatt, or Marriott points.  I like flexible cards, the SPG Amex is another example, and I could use a new sign up bonus.  I sign up for 4-6 cards a year depending on the offers to maximize my earning potential.  Some card have good bonuses, but are poor regular earners, so they don't all become long term daily cards.  Interestingly I haven't seen a negative impact to my credit score for having a number of short credit card histories.  The points game is only if you don't carry a balance, it won't pay back if you owe finance charges.

Cash Back or United Miles

Sunrise at CLT

I might be the only person who likes to be at an airport before the sun rise. Here's a glimpse of what most people miss.

767 at CLT

Hertz To Increase Award Prices October 1, 2013

In light of rising costs, we find it necessary to implement our first reward redemption point increase since 2008.  Beginning October 1, 2013, point redemption levels for Rewards will increase a modest 10-15% in the United States.

I appreciate the letter from Hertz Gold Plus Awards announcing the pending awards program change.  Advertising changes well in advance puts Hertz in the top 5% of travel companies (plus Starbucks) because most programs announce changes on short notice or after the fact.  I am interested to know what the new award chart will look like and that is something that should be included, but 10-15% points inflation isn't frightening.  Hilton points lost up to 50% of their value earlier this year, so most program changes pale in comparison.  Hertz also included a tease of new value to soften to blow: 

We will be enhancing reward redemption options with new locations and expanded choices.

I'm a strong proponent of new awards, even if they don't maximize potential points value.  More options benefit the consumer and versatility has a strong value on its own. Besides, the best value for points isn't on an award chart, but the value of dreams.  Miles and points programs bring otherwise unattainable dreams within reach, even if the dream trip isn't taken.  Bora Bora or Baltimore, it's fun to dream and know points can make it a reality.