Grading the First Class Round-the-World Awards

May 2011
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Some programs cost less than travel to the Middle East

Given the cost of an around-the-world (RTW) ticket in First Class, $14,000 to $17,000, it’s a no-brainer to redeem miles because the return-per-mile is so high. These tickets can also be an incredible value compared to point-to-point tickets. Consider that American Airlines charges 230,000 miles for a First Class RTW award ticket for up to 25,000 flight miles, which can take you from NYC to London, Hong Kong, Sydney, LAX, and back to NYC. British Airways, its partner, charges 240,000 miles just for a First Class award ticket to one destination in the Middle East.

[aside headline="Save Up to 68% via Amex on an All Nippon RTW" alignment="alignright" width="half" headline_size="default"]Even if you buy the 220,000 points it takes to get the carrier's shortest RTW, you pay only $5,500, a savings of $11,774 (68%) over the published fare.[/aside]

Refresher Course

The key concept in evaluating RTW offers is the two types of award charts airlines use: flight distance and regional. The former bases awards on actual miles flown: the more miles flown, the more miles you pay. The latter groups destinations into regions, meaning that you pay a flat rate.

Ground Rules

The marks are based on three criteria: ease of earning miles without flying the carrier; number of credit-card-transfer partners; and the return on miles.

Not all programs are shown in the report: We excluded alliance-partner airlines that don’t offer any savings over the U.S. carrier’s program, and airlines that do not offer First Class redemption such as Delta (no First Class cabin).

All Nippon Airways (Star Alliance) / ANA Mileage Club: A-

Award Chart: Flight Distance Star Alliance. It’s great for itineraries of up to 25,000 miles, for which it charges 220,000 award miles (and the reason it scored so high). But if you’re taking a really long trip, more than 44,000 miles, you will pay through the nose: 450,000 miles. In-between rates are: 260,000 miles for up to 29,000 miles; 300,000 up to 34,000; 340,000 up to 39,000; and 390,000 up to 44,000. See partners below.

American Airlines (oneworld) / AAdvantage: A-

Award Chart: oneworld. Makes the grade for the flight-distance chart used for oneworld partner airlines: A 25,000-mile itinerary costs only 230,000 miles. Other award costs on the flight-distance chart: 280,000 miles for an itinerary of up to 35,000 miles, and 330,000 miles for one of up to 50,000 miles.

Continental (Star Alliance) / OnePass: A

Award Chart: Regional Star Alliance. Our big surprise—but act now because this award chart is extinct as of June 15, thanks to the merger with United. The rate is 280,000 miles, but on June 15, it skyrockets to 350,000 miles.

United (Star Alliance) / Mileage Plus: B-

Award Chart: Regional Star Alliance. Like all B- students, United could easily do better. Here’s the problem, the creditcard-partner exchange rate: It takes two points to get one mile via Starwood. Also, don’t book a United RTW ticket until June 15, when the rate drops to 350,000 miles from 400,000 miles; a merger advantage for Unifed members.

US Airways (Star Alliance) / Dividend Miles: C

Award Chart: Regional Star Alliance. Meet the Tiffany of RTW awards: 400,000 miles. The return-on-miles is still good, given the ticket cost, about $17,000.

First Class Mileage Award Redemption Rates for Round-the-World Tickets

[table_opt style="gray-header" id="582 " width="" alignment="center" responsive="all" heading="thcenter" rows="tdcenter"]

[["<strong>Airline \/ Mileage Program<\/strong>","<strong>Award Type<\/strong>","<strong>Miles Required for 25,000-and 50,000-Flight Mile Itinerary<\/strong>","<strong>First Class Fare<\/strong>","<strong>Credit Card Partners<\/strong>","<strong>Mileage Purchase<\/strong>","<strong>Return on Miles<\/strong>","<strong>Grade<\/strong>"],["All Nippon \/ ANA Mileage Club","Star Alliance","220,000\/450,000","$17,274 ","Amex, SPG","None","7.8\u00a2 - 3.8\u00a2","A-"],["American Airlines \/ AAdvantage","Oneworld Airlines","230,000\/330,000","$13,799 ","Diners, SPG","Up to 40,000","6\u00a2 - 4.2\u00a2","A-"],["Continental \/ OnePass","Star Alliance","Until June 14, 280,000; as of June 15, 350,000","$17,274 ","Amex, SPG","Up to 25% to top off","6.1\u00a2 until June 14, then 4.9\u00a2","A"],["United \/ Mileage Plus","Star Alliance","Until June 14, 400,000; as of June 15, 350,000","$17,274 ","SPG","Up to 60,000","4.3\u00a2 until June 14, then 4.9\u00a2","B-"],["US Airways \/ Dividend Miles","Star Alliance","400,000","$17,274 ","SPG","Unlimited","4.3\u00a2","C"]]
<small><em>Amex = American Express Membership Rewards, Diners = Diners Club, SPG = Starwood Preferred Guest</em></small>