FirstClassFlyer

The first step that the One Percent take is simple: They grab the first acceptable mileage award they can find as soon as they find it.

It’s the second step that sets them apart from most premium travelers.

The Savvy One Percent Keep On Going

Whereas most people book an award and forget about it, the One Percent play the upgrade game right down to the buzzer.

They look at every last compromise they originally made in the award booking—dates, itinerary, carrier, seat—as the starting point for opportunities to improve the booking.

It’s seldom the case that you get exactly what you want, initially, out of an award booking.

When Upgrade Opportunity Knocks

The One Percent realize a key fact about air travel today: Award space tends to open up as the day of departure approaches.

Two weeks, one week, the day before—if you stay on top of the ever-changing allotment of award seats, you can win big upgrades, just by changing what you have confirmed to a new, better option.

It’s the inverse mindset of fare booking, where you traditionally pay less by booking farther out. The Award Upgrade Two-Step is a key element of what I call the FCF “Upgrade Mindset”.

Another Counterintuitive Travel Industry Illustration

A recent Hotwire hotel study showed that in major U.S. cities, hotel prices dropped—often drastically—for day-of-arrival bookings. Granted, most people are not going to wake up, check Hotwire, and fly across the country to score a $97 room in San Francisco.

However, what if you are already going there and have a hotel booked that allows cancellations up until the last minute—and a much better deal became available? Of course you’d take it.

Most travelers don’t understand this concept. Or, content themselves with mediocre bookings. That works to the advantage of those with the Upgrade Mindset. After all, the fewer playing the game, the better for you and me.

Examples of Last-Minute Award Opportunities

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How Can All This Be True?

It’s the larger air-travel truth that matters: The airlines think that something is better than nothing. They believe it’s better to have someone pay cash for Business or First Class, but they also believe it’s better to get paid in miles than to have a flight depart with empty seats. Don’t believe me? Take a look at the data FCF compiled in a chart on page 2 for travel at the end of January on award availability changes at the last minute. It’s easy for you to see this in your own searches.

Change—In This Case—Is Your Friend

Award availability changes constantly for two main reasons:

Business travel drives the airline industry and business-travel plans change constantly.
Airlines hold out seats for as long as possible to get the best price, and at the 11th hour (which can vary by airline) make them available for other ticketing scenarios.

There’s Always Fine Print: Know The Award Upgrade Two-Step Rules, Discrepancies

We’re going to look at some crucial loyalty program fine print: The rules on changing an award booking, which are summarized in the charts on pages 5. You have to be opportunistic when it comes down to the wire. You try to improve your seat, routing, and schedule, or reduce your taxes and fees paid, and/or mileage cost.

In my mind, any one of these is an upgrade. (A checklist of the upgrade opportunities to think through is on page 4.)

However, to make the call, you must know how much latitude your loyalty program gives you when it comes to rebooking an award or redepositing the miles.

It’s a cost/benefit analysis. Maybe you pay $150 more in a change fee, but $700 less in a fuel surcharge, or end up in a flatbed instead of a 160-degree reclining seat—and get a
better night’s sleep.

Or both.

Is the effort to check availability regularly worth the cost in time spent? No question in my mind.

Big Picture Strategy

Some domestic airlines dance better than others, so it pays to know how well your loyalty partner does the Two-Step.

Air Canada: Uniquely does not waive any fees for most of its elites (except Super Elites). Be absolutely sure of your plans, or pay just $90 CAD to change them.
American: One of the best, as it allows date and time changes at no cost, even after travel has started. The carrier also waives the change fee if the class of service increases. If you are booked in Business Class from Dallas to London and First Class opens up, you only pay the difference in miles, not the usual $150 change fee.
Delta: Doesn’t allow changes to award bookings inside of 72 hours, which is Prime Time for Found Flights. Yet another reason to be frustrated with the program.
United: The award-change and redeposit fee is based on elite status level. It also allows date and time changes for any member, for free, as long as it’s made 21 or more days before departure.
US Airways: Doesn’t allow changes to return flights after travel commences if any segment of the itinerary involves a partner. On US Airways-operated flights, only date and time changes are allowed once travel has started.

Important: Wait to Tell Your Travel Companions About the Dance

When you’re performing the Award Upgrade Two-Step, you don’t need to tell your spouse or kids what you’re up to. The prospect of travel plans changing at the last minute makes many people uneasy.

Wait till you locate the potential upgrade. Who is going to complain about an upgrade, right? Just propose the new option and let your travel companion make the decision. You’ll be the hero.

[aside headline="Upgrade Two-Step Simplified" alignment="alignright" width="half" headline_size="default"]

Step 1: Book the best routing and class of service, even if it’s far from what you want, as soon as you can.

Step 2: Check back every week or month, depending upon how far out you’ve booked. If departure is less than 30 days away, check every few days. (See checklist of upgrade opportunities to think about below.)

Step 3: When you discover a better booking, run it by your travel companions, and pay the change fee if it’s a go. (See chart on page 5 for the rules.)

Step 4: Keep it up. You may still be able to improve your situation.Step 5: Don’t rush to redeposit miles. If you are going to fly the route again soon, you can often make a place-holder booking for free, and then redo it when you know your real dates.

[/aside]

How Bennett Books

Dancing the Two Step With Two Dance Partners—at the Same Time

I’ve learned to live close to departure: I’ve re-booked more than once on the way to the airport. I don’t recommend it for everyone, but it works.

As long as your mileage portfolio is diversified, your options are almost endless, and booking great award seats is not all that difficult.

My portfolio is largely split among Amex Membership Rewards, Chase Ultimate Rewards, and Starwood Starpoints, which together give me access to 37 different airline programs. If you don’t belong to these programs, you will have much lower odds at the award table.

I recently booked United from Monterey to New York only a week out. Know what? It wasn’t available the week before. Why did I make that booking? It was my fallback: The American flight I actually wanted wasn’t available—but it did come up—three days before departure.

Just when I was thinking, “how much is the mileage redeposit fee?” for the United ticket ($150), it occurred to me that I will be flying this route again in the next few months. So I just made up some dates, and changed the ticket—for free. I will change them again once I know when I’m actually going to New York.

Not only did the hedge cost me nothing, but it allowed me to Dance the Two-Step with two different ”partners”—‍.

If you were traveling to Europe and you had miles with American, Delta, and United, you’d have 78 airlines to work with.

At the last minute—with award inventory usually opening up—my biggest problem is determining which new booking offers the most upgrades.

What a delightful problem to have, don’t you think?

Free Mileage Award Ticket Rules for Changing and Cancelling on Major Domestic Airlines

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Free Mileage Award Ticket Rules for Changing and Cancelling on International Airlines

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[["Airline","Non-stop Route","Class","Historically Speaking","Sample Last-Minute Availability On Jan. 22"],["American","Miami","Business","Almost zero availability","A day out: very often available"],["United","Chicago - Hong Kong","First","Almost zero availability","A week out: 3 out of 7 days available (43%). The rest of the year: zero availability."],["United","San Francisco\n- Sydney (and many of UA\u2019s Downunder routes)","First","Almost zero availability","A day out: usually available, and like clockwork"],["US Airways","*Philadelphia- Amsterdam","Business","Zero availability","Two weeks out: 5 out of 14 days available. The rest of the year: zero availability."],["US Airways","Phoenix - Kona","First","Almost zero availability","Ten days out: 3 out of 10 days available (30%). The rest of the year: 1 day over the next 11 months."]]

*This amazing availability also comes at the low cost of an “off-peak” award of just 60,000 miles r/t award. Just $1,129 round-trip had you purchased US Airways miles in the buy-miles-bonus over the last couple years.

[["Airline","Itinerary Change Fee","Booking Cancellation\/Redeposit Fee"],["American","No fee for departure date or time changes outside of 21 days. If changes are within 21 days, then AA will charge a $75 fee. Routing fee: $150 per person for route changes, whether departure, connection, or return city.","$150 for the first ticket per award account, $25 for other tickets from the same account. Redeposit fee waived for AA Executive Platinum members. If a new award is issued that requires more miles (for instance, changing a Business Class award to First) it incurs no fee."],["Air Canada","$90 CAD for any change, even for most elites (First time change fee waiver for Super Elites starts on March1).","$90 CAD for bookings cancelled at least 22 days in advance. No redeposit permitted for shorter-term cancellations. Passenger must keep ticket (valid for one year) and pay change fee upon rebooking."],["Alaska","$100 ($75 online) even for most elites. Fee waived for Gold elite members only.","$100 ($75 online) even for most elites. Fee waived for Gold elite members only."],["Delta","$150 for any change. No changes permitted within\n72 hours of departure. Fee waived for Diamond and\nPlatinum Medallion members.","$150. No redeposit permitted within 72 hours of departure. Fee waived for Diamond and Platinum Medallion members."],["United","No fee for date or time changes 21 days or more prior to departure. Routing changes are $75 (less for elites). Within\n21 days, fees vary: $75 non-elites, $50\/Silver, $25\/Gold, no fee for Premier Platinum and Premier 1K.","Fees vary: $150 non-elites, $50\/Silver, $25\/Gold, no fee for Premier Platinum and Premier 1K."],["US Airways","$150 for any change. Once travel has started, only dates and times can be changed for awards with only US Airways flights. No change allowed on partners once travel has started. Fee waived for Chairman members.","$150. Fee waived for Chairman members."]]

*Due to mileage program modifications and ambiguous rules, please recheck information at time of booking and changing awards.

[["Airline","Itinerary Change Fee","Booking Cancellation\/Redeposit Fee"],["The Flying Blue program: Air France and KLM","45 Euro. No changes allowed to promo awards.","45 Euro. Promo awards are not refundable."],["Alitalia","No fee for date or time changes. 55 Euro or 5,000 miles for route, class of service, or airline changes.","No refund: Award ticket must be used within\n12 months from the first issue date."],["Asiana","No fee","Within 12 months, $30 or 3,000 miles for international flights; after 12 months, $100 or 10,000 miles."],["Miles & More program: Austrian, Brussels, Lot Polish, Lufthansa, and SWISS","50 Euro or $60 for date or time changes;\notherwise redeposit is required.","50 Euro"],["British Airways","$40 for date or time changes more than 24 hours prior to departure. No changes allowed within 24 hours of departure.","Depends on cancellation date: 15 or more days out,\n100% mileage refund; 14 to 8 days, 75% refund;\n7 to 4 days, 50% refund. No refund after that."],["Cathay Pacific","No fee for date changes, $100 or 10,000 miles for routing changes.","$120 or 12,000 miles before ticket expiry date. (Expiration date is one year from date of issue.)"],["Japan Airlines","No fee for date or time changes at least 4 days before departure. Within 4 days requires a redeposit.","3,000 yen or 3,000 miles per award."],["Korean","No fee for itinerary changes within the award region; otherwise a redeposit is required.","No fee within six months of ticket issue date. 5,000 miles after six months, and 10,000 miles after 12 months."],["Qantas","No fee for Classic awards in Business or First Class. Change fee for international award is 3,500 points per passenger.","5,000 points per passenger before departure."],["Singapore","For Singapore flights: no fee for date changes and $12 for online change to routing, cabin class, or award type; off-line is $20. Partner flight changes are $20.","$30 to redeposit and for no show $75; fee applicable for cancelling award flight less than 24 hours before departure."],["Thai","$40","$190 or 15,000 miles prior to start of journey."]]