The Honeymoon is Over

September 2011
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Continental and United Members are About to Lose a Major Mileage Source: Here’s How to Cope.

As we’ve pointed out over the last few months, on Sept. 30 Continental will end its points-to-miles transfer agreement with Amex Rewards as a result of its merger with United. That also spells the end of the point-transfer loophole United members received as a side benefit of the merger.

Members of both programs will naturally be looking for new ways to get miles, but United members especially. That’s because United does not offer a good point-transfer option with a multi-airline credit card, so the primary way to earn miles is by flying or using a United credit card.

Here’s what you can do before and after the deadline.

Before Sept. 30

Mileage upgrade traveler: You’re the person who uses Continental and United miles for upgrades rather than free award travel. You should do two things: Move all your Amex Reward points to Continental before the deadline. In fact, if you can, buy all the Amex points you can in the next 30 days and transfer those also to Continental, because after the deadline you will be stuck earning most of your miles the old fashion way: With an airline co-branded credit card, by flying, or by buying miles directly (up to 60,000 annually).

Mileage award traveler: Stay diversified and only transfer points as needed for current bookings or upcoming trips because you will still be able to book free award travel through other Star Alliance carriers that are Amex Rewards partners: Air Canada, All Nippon and Singapore Airlines.

After Sept. 30

Mileage upgrade traveler: Buy miles and get the Continental or United credit card. I mainly use my United miles for transcon upgrades, as a Business Class ticket on United goes for at least $3,100. The first thing I’m going to do is stock up on miles by buying 60,000 (the annual limit) from the airline now and again in January. I will also use my United credit card more for purchases to earn miles as needed.

Need more miles: Take advantage of United’s Award Accelerator, an option which lets you buy double or triple the miles flown on an itinerary at about 3¢ per mile. That means that if you fly from Washington, DC to London (3,677 miles one-way), you could buy 3,677 miles for $110 and 7,354 for $221, on top of the 3,677 miles earned for flying.

Free mileage award traveler: You can avail yourself of the other Star Alliance transfer partners as mentioned before.

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