Sometimes booking tickets using miles can cost less. Photo: iStock
Over the years, I have listened patiently to many a folks who have argued that the frequent flyer miles they have collected are not useful at all. I understand the frustration but if you were to understand how these programmes work and how you could get the most value for your miles, perhaps it would make it easier for you to use your miles.
Frequent flyer programmes are marketing programmes by design, but also similar to an investment account or a bank account by nature. You earn miles for various activities including taking flights, using your credit card, shopping, etc. However, when it comes to using your miles, the rules are different.
Most airlines do not offer all the seats on a flight towards mileage redemption. Out of the hundreds of seats available on any given flight, airlines would usually offer redemption seats in the single digits. So, theoretically, that means not everyone can use their miles for redemptions on the same flight.
But the good part is, when you can use your miles towards a redemption ticket, you can shave off the entire cost of the ticket and use that money towards other travel expenses or experiences. For instance, you don’t have to pay ₹ 1.25 lakh for a business class ticket (one-way) to London, your miles would do just fine.
Hence, earning and burning miles towards travel, requires a shift in thought process, and adjusting to a few new realities as compared to shopping for tickets in cash.
Airlines generally tend to sell tickets almost a year in advance. They also start accepting reservations for miles redemption seats at about the same time. So, if you are looking for an award seat, especially in business class or first class, 11 months before your travel date is the time to start looking at the airline websites to see what is available. The obvious retort is: “Who plans a trip so early?” Given that mileage tickets are limited, people who get them first, do get to keep them. So, the earlier you start planning, the more chance you have at a redemption ticket.
Flexibility is of prime importance as well. Someone else could upend you to get the seats on the flight you wanted. In that case, be a little flexible, and look for other flights and you could still be going where you have to go.
Another thing that gets frequently missed out is redemptions across airlines. For instance, Air India is a member of the Star Alliance, which makes available the inventory of all the 28 Star Alliance member airlines. This ability to book tickets for miles on other airlines could come handy for international travellers to save a lot of money. Would you want to spend $200 on a flight between New York and Washington DC, or use 7,500 miles from British Airways for a redemption ticket and $5 towards statutory fees? I think the answer is obvious.
The other simmering debate always is about when to use your miles and when to use money.
From how I look at it, miles provide a large arbitrage opportunity over money for premium cabin tickets.
For instance, you could spend ₹ 1.5 lakh towards economy class round-trip tickets for two for a special trip, such as a honeymoon, between India and Europe, or you could spend 2 lakh miles and ₹ 12,000 towards a round trip ticket in first class (on LifeMiles redemptions).
This is possible because most airlines price their business class tickets in cash at four or fives times of economy and then first class even , but when it comes to mileage programmes, business class tickets are twice the price of economy, and first class a little than that.
The different rules for use of miles over cash tickets can also come to your rescue many a times. Business travellers would have suffered at the hand of airlines having to buy one-way tickets internationally, which are almost as expensive as round trip tickets.
And many a times a last-minute ticket could be at prices that make everyone cry. However, when it comes to mileage tickets, the rules dictate a set price for every route, so these prices don’t change due to closeness to departure or other commercial ticketing rules.
For those of you who like to travel smart and save money at the same time, with a bit of flexibility and patience, you can indulge without having to pay the exorbitant price that comes with it.
Elevate Your Travel is a column for the business travellers by a business traveller. Ajay Awtaney is founder and editor of Livefromalounge.com, a frequent-flyer website.
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