Four situations in which the upgrade often trumps the free ticket and one when they don’t.
Over the last few months the reports I’ve written about fare changes in both Business and First Class have made me rethink the Upgrade Mindset in regards to using miles versus paying cash, especially when it comes to upgrading to First.
In general, the best return on miles, no matter that mileage program, is a free First Class award ticket, but they can be hard to get. Then, too, buying a First Class ticket to Asia often costs a small fortune. So, here are five common situations and how to decide whether to go for the upgrade or swallow hard and put down your credit card.
Situation One: When free First Class awards are not available on American or United
American and United pull from different inventory buckets when it comes to free and upgrade awards. Very often, upgrades to First Class are much easier to come by than free First Class award tickets. Upgrades on either airline are a good option when the First Class fare is high (you missed the advance-purchase deadline or other low-fare restriction), or the route is simply expensive, as is the case with United’s Chicago-Hong Kong flight, where a First Class ticket costs $19,009, and Business Class is $6,843. The upgrade costs $1,200 and 60,000 miles. (See free award versus upgrade award reports for United in July and for American in February.)
Four Common Situations When First Class Upgrades Work and One When They Don’t
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Situation Two: When upgrade and free-ticket availability is the same and you don’t have many miles
Asian carriers (All Nippon, Asiana, Cathay Pacific, Japan Airlines, Korean, and Singapore) pull from the same inventory bucket when it comes to free and upgrade awards. For example, a free First Class New York-Hong Kong award ticket on Cathay Pacific is 220,000 miles roundtrip, while an upgrade from Business to First Class costs 105,000 miles. If you lack the miles for a free ticket, then the upgrade is a good option, especially when a non-stop First Class ticket is $29,214 and the upgradeable Business Class fare is $7,543. Search for Cathay Pacific upgrade availability.
Situation Three: When your company or client is paying for Business Class or you really want the elite credit
All Nippon and Japan Airlines offer reasonably priced mileage upgrades and heavily discounted Business Class fares and do not charge a co-pay—a trifecta. Both airlines allow upgrades to First on their $4,662 Los Angeles-Tokyo Business Class fare. That may sound expensive, but consider this: A First Class ticket on both airlines goes for $14,737—so using miles saves you $10,075 (68%). Make the same choice if you have to pay cash to expense the Business Class portion, or a client is paying for a Business Class ticket, or you want the elite credit.
Situation Four: When the upgradeable Business Class ticket is costly
Select airlines that offer an upgrade from the lowest Business Class fares and not airlines that only allow upgrades on higher fares. For example, Japan Airlines upgradable Business Class fare from New York to Seoul usually runs about $4,956, whereas Korean Airlines’ upgradeable fare is $7,969. That nets a $3,013 (38%) savings on the Business Class ticket, and a $9,793 savings compared to the published First Class fare.
Situation Five: When you have few or no miles, or free award space is not available
Since American and United have slashed some First Class fares to Asia, it may not pay to upgrade using miles, especially given the cost, $1,100 to $1,200 and up to 60,000 miles. Paying cash for these new fares often delivers more value. To take one example, American’s lowest Business Class Dallas-Hong Kong fare is $5,620; its lowest First Class fare is $6,120, only $500 more. But if you were to use miles, it would cost $1,100 for the co-pay—$600 more than a First Class fare—plus 50,000 miles.