More Bad News for Mileage Longevity

The big news of the past week is United's newly announced mileage expiration policy. And as consumers have come to expect from such policy changes, the news is bad, reducing by half the period during which Mileage Plus members must have account activity before their miles disappear.

United's move isn't unexpected. As we've reported, Delta recently cut back its mileage expiration policy from three to two years; and US Airways slashed the life of its program's miles from three years to 18 months. But what adds insult to injury is that United chose to copy US Airways -- a discount carrier whose policies predictably tend toward the stingy -- rather than Delta's more magnanimous, consumer-friendly changes.

See "Miles & Points" below for more.

FrequentFlier Forum Topics

As always, there's plenty of activity on the FrequentFlier Forum.

In the "Airline Programs" Forum, barbawmcc is looking for advice on an award trip for a family of four to Hawaii: "My FF accounts: NWA 60K miles; Delta 20K; USAir 20K; etc. Husband's: 25K in a couple programs. Plus we have 75K miles redeemable on a variety of airlines. More miles are coming from holiday shopping/dining on airline credit cards. Ideally, we'd like to turn our misc. miles into 4 FF tickets on the same flight (or 2 FF tkts on 1 flight & 2 on another airline's flight at similar time). Any advice (other than telling me to wake up) on any aspect of my mad plan?"

Also in the "Airline Programs" Forum, rhand63 wonders whether a free ticket can be upgraded: "Has anyone been able to get upgraded by UAL with an award ticket? I'm just a lowly Premier member (6 yrs) and my wife and I are flying back from HNL on a direct flight to DEN. I would greatly appreciate any suggestions or advise!"

And much more. Questions, answers? Post them to the Forum!

:: More

Bonus American Miles for Flights to London and Beyond

Through March 31, AAdvantage members can earn up to 50,000 bonus miles for American flights from the U.S. to London, connecting to AA code-share flights to points beyond London.

Bonuses are 50,000 miles for roundtrips or two one-ways in first or business class (fares booked in F, J, A, D or I) and 25,000 miles in full coach (fares booked in Y, B or H).

Registration is required.

:: More

Double American Miles for Starwood Stays

Through February 24, AAdvantage members will earn double miles for stays at participating Starwood hotels in Florida and the Caribbean.

:: More

Barcelo Is New Continental Hotel Partner

Continental OnePass members can now earn 500 miles at participating Barcelo Premium Hotels and 250 miles at all participating Barcelo and Barcelo Comfort Hotels.

:: More

Triple Airline Miles for Dollar Car Rentals

Through April 15, members of the programs of American, Delta, Northwest and US Airways can earn triple miles for Dollar car rentals of intermediate or larger vehicles for three or more days.

Use promotion code DR7S when booking.

:: More

From Omni Hotels: Destination Dollars

Through February 28, members of Omni Hotels' Select Guest program can earn a $50 credit for the second and subsequent nights, up to a maximum of $200 per stay. The so-called Destination Dollars can be used to pay for any hotel expenses incurred during the qualifying stay.

The offer also includes free upgrades on a space-available basis.

Trips must be booked by January 31 to qualify.

:: More

United to Slash Life of Miles

United announced last week that it will reduce from three years to 18 months the period during which Mileage Plus members must have account activity in order to keep their miles from expiring.

The new policy takes effect on December 31, 2007, and will apply retroactively. So on that date, accounts with no qualifying activity since July 1, 2006, will lose their miles.

Why the change? Because recent changes by Delta and US Airways set a precedent for reducing the life of miles, and that precedent allows United to follow suit without calling undue attention to itself. In other words, because they can.

The reasons given by United are twofold. United's press release boasts that the new policy "preserves award seats for United's most loyal customers" and admits that it also "reduces the company's frequent flyer mileage liability."

There is no doubt that the second claim is valid: reducing the number of outstanding miles on their books will indeed reduce United's liability.

According to the Chicago Tribune, a recent United Securities and Exchange Commission filing projects that 427 billion of the 495.2 billion miles on its books will eventually be used, costing the airline $3.5 billion. United reckons that $41 million in mileage liability would be scrubbed from its books for every 1% reduction in the number of outstanding miles.

But the claim that the new policy will make it easier for active program members to redeem their miles? Questionable at best, laughable at worst.

If someone hasn't earned or redeemed a single mile in 18 months, how likely is it that he's a significant drain on United's supply of award seats?

This is clearly a case where the cost-obsessed bean counters prevailed over the customer-focused marketers, and is a step in the wrong direction by a program that was well on the way to establishing itself as one of the best of breed. With the change, United's mileage expiration policy will be no more generous than that of US Airways -- a discount carrier whose stinginess is in keeping with its cut-rate persona. Apparently United feels its customers deserve no better.

:: More

Deal Alert from SmarterTravel.com

1) American's Ski Destinations Fares from $118

American has joined United and US Airways in offering a sale featuring ski destinations in the western U.S. Prices start at $118 roundtrip, and destinations include Denver, Jackson Hole, and Vail.

Travel is valid daily from January 31 through March 15. Book tickets at least 14 days in advance. American has not listed a booking deadline, but United's sale expires January 29.

:: More

2) Hawaii fares on Hawaiian from $258

Flights to Oahu and Maui are on sale from Hawaiian. Prices start at $258 roundtrip for travel through mid-March.

Travel is valid through March 14. Hawaiian has not listed a booking deadline.

:: More

Win a Trip for 2 to Las Vegas

Enter Southwest's "Las Vegas Vacation" sweepstakes by February 28 for a chance to win a trip for two to Las Vegas, including air and three nights' hotel accommodations at Treasure Island, tickets to Mystere by Cirque du Soleil, and dinner for two.

:: More

[Visit http://frequentflier.com/sweeps.htm for more travel sweepstakes.]

Feedback from the Frontlines of Travel

"I recently read that miles earned for credit card purchases are considered 'promotional miles,' and will be removed from your frequent flyer account if you cancel the credit card. I have never seen this discussed in your newsletter. Is it true?" [Fran K.]

[FrequentFlier.com replies - In most cases, that is NOT true. Once the credit card miles have posted to an airline account, it doesn't matter if the credit card account is active or not.

One exception that comes to mind is the American Express Membership Rewards program. There, if you cancel the Amex credit card before converting the points to an airline or hotel program, the Membership Rewards points would indeed be lost.]

"Thanks for the great travel letter; I always seem to learn something each edition.

"One thing on your 'Passports: Don't leave home without 'em': You should make it more clear that the 'passport to enter the USA' does NOT apply to land travel from Mexico... at least until mid 2009, I think." [Wandal W. - Anchorage, Alaska]

[FrequentFlier.com replies - Correct, the new passport requirements only apply to U.S. citizens reentering the country by air. It is expected that the policy will be expanded to include other modes of transport, but no start date has been announced.]

Until next week...