To Jump or Wait?
We’re going to Ireland in January from DC. I’ve checked my frequent flyer accounts and Delta offers a 100,000 mile Business Class reward at that time of year. However, I’m thinking that in early January traffic won’t be heavy and that going in coach won’t be too bad and I can save the miles. Should I buy the economy ticket and see if a cheaper Business Class fare comes out later, or should I just grab the Business Class ticket using miles?
Robert W. Hunter, Washington, DC
Do them both—confirm the mileage award ticket and keep an eye on Business Class fares—if fares should drop (as January is usually not an off-season month for Business Class), cancel your award ticket and redeposit your miles for $150.
If you’re looking for a Business Class promo fare, travel during the holidays (Dec. 19 to Jan. 6, 2012 outbound; Dec. 25 to Jan. 10, 2012 return), when Business Class fares are down. Paris fares start at $1,750 plus taxes and fees.—MB
Doing the “Buy Miles Math” How do you calculate price-per-mile when buying miles from the airline, and at what price does buying miles stop being a good deal?
John Harding, Pleasanton, CA
Here’s a primer, using US Airways as an example. The cost to buy 1,000 miles is $27.50 (plus taxes and usually a transaction fee). So the cost per mile is about $27.50 divided by 1,000, which comes out to 2.75 cents per mile.
There is no cut-off point for determining a good deal on purchasing miles. You have to compare the cost of buying miles for a ticket with the cost of the fare. Let’s say you have 25,000 miles with US Airways, and a Business Class award to Europe costs 100,000 miles. You have to buy 75,000 miles, which comes to about $2,062.50 (plus taxes and fees). If the Business Class ticket is around the same price, you should pay the fare and earn miles instead of buying and burning miles. If the fare is $5,000, then by all means, buy and burn.
In a nutshell: The highest return on miles usually comes with a First Class redemption because the fares are so high. With Business Class, you have to do the math.—MB
Success Story
Thanks to your newsletter, which I have subscribed to for more than seven years, I was able to purchase miles through Alaska Airlines mileage program and turn them into a free round-trip First Class confirmed ticket on Cathay Pacific. I bought three blocks of 30,000 miles each, which netted a 10% bonus each time, spending $2,511, as opposed to the published fare of about $16,000. The Alaska staff was great, letting me purchase the remaining miles needed while they were confirming the reservation. (I have never flown on Alaska and probably never will, living in Miami). You certainly have proved beyond a shadow of a doubt the worth of your publication.