Flight Pay

People used to feel sorry for the frequent flier, the man who spent his jet-set life trying to catch sleep on a four-hour layover in St. Louis. In 1987, that same man is probably earning valuable bonus miles for his hardship--in fact, he may even have rerouted himself specifically to accumulate mileage in his frequent-flier program. There are more than 100 airlines in the United States, as well as several international carriers, that offer such programs. The concept is simple: A frequent flier earns program miles on the basis of the number of actual miles flown on a particular airline. In addition, the large carriers are tied in with hotel and rental-car chains that offer additional mileage. In 1986, more than one billion dollars in frequent-flier awards was issued by the airlines. If you don't think that you fly often enough to justify enrolling yourself in a frequent-flier club, consider this: On most major airlines, including American, Continental, Delta, Eastern, Piedmont, TWA, United and Western, it takes only 10,000 miles to win the minimum award. This ranges from a first-class upgrade on American to a 25 percent discount on a round-trip ticket on Piedmont.

Most major hotel chains are tied in with airline programs and offer anywhere from 500 to 2000 miles per stay, depending on the type of room. In addition, Marriott and Sheraton have their own frequent-guest programs modeled on the frequent-flier concept. Hilton and Radisson have quickly followed suit. Hotel programs offer a chance to earn mileage in both the airline program and the frequent-guest program.

Car-rental mileage of 500 to 2000 frequent-flier miles is readily available. Hertz belongs to 11 such programs. Avis, National, Budget, Thrifty, Dollar and Alamo are also partnered with airlines. Given the extensive tie-ins with hotels and car-rental agencies, program mileage can be accumulated on the ground as easily as on a flight across the Pacific.

Tie-ins are not limited to partner airlines, hotels and rental-car agencies. Mileage can be accumulated in a variety of ways, many of which involve no travel. In 1986, Northwest offered a 500-mile bonus for ordering a $30-or-more bouquet from Florafax, a national florist delivery service. Northwest recently offered a 5000-mile bonus for applying for the Citicorp Diners Club card and 500 bonus miles for a subscription to Business Week. Not to be outdone, the now-subsumed Republic Airlines offered 250 bonus miles for buying personalized golf balls from Austad's and 400 bonus miles for ordering the Executive Fisherman's Kit from Daiwa. Currently, Eastern is offering 5000 bonus miles for signing up and using the Eastern Gold MasterCard, and bonus miles don't end there: Earn one bonus mile for every dollar charged to the card.

Midway Airlines wins the prize for the most paradoxical award: one free ticket earned without ever having to fly Midway. Registering for the FlyersFirst program earns four credits, and ordering a Citicorp Diners Club card through Midway garners another credit, for a total of five-- enough to win a companion ticket for travel in the U.S.

All of the partner hotels, airlines and car-rental agencies, many of which switch allegiances, make for a very incestuous system. There are, however, handsome rewards for those willing to follow a few simple rules:

Rule one: Concentrate mileage accumulation in one program. If possible, plan to stay in partner hotels and use the car-rental-agency and airline tie-ins.

Rule two: Take advantage of bonus-mile opportunities. Most airlines offer double bonus miles and specials on a monthly basis. If a new route or service is being introduced, there is a good chance that bonus miles will be offered. United Air-lines recently offered a 10,000-mile bonus for round-trip flights from Chicago to Santa Barbara, Burbank and Long Beach. Since Long Beach is only 20 miles from L.A., this offered the informed frequent flier an excellent opportunity to enhance mileage and demonstrated that even on the same airline, awards may vary.

Rule three: Use tie-ins effectively. Hotels that offer points per night, such as Intercontinental, give a rapid accumulation of mileage. The corporate or standard rates usually apply: Discount prices do not generally buy mileage. The difference between the corporate rate and the discount rate is often minimal. International partner carriers and promotions offered for subscriptions, credit cards, etc., will also enhance mileage.

Car rentals are useful for quick mileage. There is generally no limit on the number of cars that can be rented in conjunction with a flight. Program credit can vary from 500 to 2000 miles, depending on the type of car rented. As long as a boarding pass is presented, it may be possible to rent several cars within the individual program limit. Car rentals offer an excellent and cost-effective way to add mileage at a relatively low cost to the frequent flier.

Rule four: Fly business class or first class to enhance mileage (and comfort). Most carriers offer a 25 percent mile bonus for business-class travel and often up to 50 percent for first class. Mileage accumulates rapidly on international flights and other long hauls. In some programs--for example, Delta's and Continental's--members may upgrade to first class for as little as $15, if there is space available, and receive the bonus mileage, as well as the plush service.

Rule five: Ensure that credit is received for all flights, hotels and rental cars. It is up to the individual to send in the forms and keep on top of them. The airlines process thousands of credits each day, and no one person is assigned to any account.

Rule six: Keep all records and program materials for at least one year. It is easy for paperwork and, consequently, credit to be lost in the proverbial shuffle.

Rule seven: Read the fine print. Most awards come with blackout periods during which they are not applicable, and other restrictions always seem to apply. Rules have been known to change, and they differ from program to program.

Rule eight: Redeem those awards. Awards and award levels can change from 110 year to year. Although the programs are open-ended, in most instances the year in which the award is given is the year in which the rules apply. You must have the required number of miles earned in the calendar year to claim the award under that year's rules. In 1984, two coach tickets to Hawaii on Pan Am were offered at the 40,000-mile level. In 1985, it took 50,000 to win that same award. In 1986, Pan Am stopped flying to Hawaii.

Each program offers free travel for two to a variety of destinations. To get the most distance out of the miles, so to speak, the frequent flier should shop around for the best deals offered according to the type of awards and locations desired. Although most programs are tied in with international partners, their awards usually require anywhere from 10,000 to 30,000 additional miles over the level on a comparable U.S. airline.

Domestic vacations: All of the airlines offer domestic-travel awards at relatively low (and attainable) mileage levels. Northwest offers travel for two at only 40,000 miles and allows travel to the latest vacation spot, Alaska, but does not include Hawaii. At the 50,000-mile level, American and TWA offer awards that include Hawaii. Of the remaining major carriers, Continental offers travel to the mainland U.S., Mexico and Canada for 55,000 miles. United offers coach-class tickets for travel to North America (including Hawaii), Mexico and the Bahamas at the 75,000-mile level. Delta requires 70,000 miles for two coach-class tickets; Eastern's requirement is 55,000.

European travel: Although not a popular destination last summer, Europe is certain to regain its vacation allure. The three U.S. airlines with the most extensive routes are Pan Am, TWA and Northwest. TWA and Northwest award free coach travel for two at the 60,000-mile level. Pan Am offers the most exotic European routes at 80,000 miles; TWA awards first-class European travel at the 90,000-mile level.

South Pacific/the Orient: Again, there are three programs that offer travel rewards to this area on their own airlines: United, Northwest and Continental. Northwest emerges as the clear winner in the battle for the South Pacific, as it offers two coach tickets for only 80,000 miles. Given the cost of tickets to the Orient, this is a true bargain. United's South Pacific service offers two coach tickets at 100,000 miles.

South America: Going to Rio or Buenos Aires? Pan Am and Eastern are the two U.S. carriers that provide service to this region. Eastern Airlines is the clear choice: With its awards, frequent fliers can claim award travel throughout all its extensive routes in South America. However, Eastern Frequent Traveler Bonus members should be green with envy, since Pan Am is the only U.S. carrier that provides free trips to Rio. Pan Am and Eastern provide award travel to selected destinations for 80,000 miles.

For frequent fliers who prefer to travel first class and do not wish to accumulate miles, most airlines offer a free first-class-upgrade certificate for only 10,000 miles. Have an extra 20,000 miles to spare? The British Airways Mileage Plus member can upgrade from first class to the Concorde when flying to London.

There are special rewards offered to those frequent fliers who have logged almost as many miles as the captain. These prestige programs are offered by most of the major carriers, though airlines do not widely publicize them so as not to encourage a stratification, so to speak, of frequent fliers. United's Mileage Plus Premier program has a graduated bonus-award structure for Mileage Plus members beginning at the 25,000-mile-per-year level. At 75,000 miles, Premier Executives are awarded an additional 125 percent of their flight miles for each flight. Other perks include a first-class upgrade for each 5000 miles accumulated in 1987. TWA's Gold Card is available to members who have flown at least 30,000 flight miles (or four transatlantic flights) and includes a ten percent mileage bonus for all coach flights, a 25 percent bonus for Ambassador Class or a 50 percent bonus for first-class flights.

American's Advantage Gold program participants are selected by the airline, and membership is offered to only the top two to three percent of frequent fliers. Awards include upgrades to first class, special deals on car rentals and bonus miles for each flight.

Most airlines allow the transfer of awards to family members. In reality, the transfer allows the frequent flier who prefers a more sedentary vacation to sell the award to a coupon broker. Another traveler may purchase it from the broker at a 40-to-60-percent discount from the retail price of the ticket. Most coupon brokers deal primarily in first-class tickets.

The airlines employ a good deal of rhetoric against ticket brokering, claiming that it destroys the "spirit" of the programs, because those flying on the free tickets are rewarded for their patronage to the coupon broker, not the airline. Alan Gross, a coupon broker from AGCO in Silver Spring, Maryland, maintains that "brand loyalty is actually enhanced for the ultrafrequent flier, who will continue to fly his airline and sell the awards he won't use." The airline industry is watching closely a suit filed by American Airlines last June against a Southern (continued on page 142)Flight Pay(continued from page 110) California coupon broker for brokering AAdvantage awards. It will also be interesting to gauge industry reaction to United's new policy restricting transfer of some mileage awards. Clearly, turbulent times lie ahead for the "high flying" coupon brokers.

The mergers of Northwest Orient with Republic, Eastern with Continental and NY Air and Delta with Western will undoubtedly pressure the other large carriers to beef up their promotions and awards. Each of the programs claims to have the most aggressive marketing and the most accessible awards. Over the past two years, the major programs have competed heavily for business; yet at the same time, they have maintained or increased the mileage necessary to win free travel.

The exception to this rule is Northwest, which has lowered its requirements for one free domestic ticket to the 20,000-mile level. Fran Tarkenton was quarterbacking Northwest's media blitz on television last year and in newspapers to ensure that even people who don't remember him will remember "The Score."

Airline programs can be ranked by types of awards offered, ease of attainment and the quality and quantity of their tie-ins. Keep in mind, however, that the top programs all offer excellent awards and provide countless opportunities to increase mileage.

American/Pan AM: AAdvantage/Worldpass

The merger of these programs combines Pan Am's ease of mileage attainment and exotic routes with American's excellent service and domestic routes and offers international-travel opportunities based on the mileage level. Take advantage of WorldPass' new value-added program and win free travel in both programs simultaneously. The AAdvantage/World-Pass combination allows for mileage accumulation and free-travel awards virtually world-wide.

United Airlines: Mileage Plus

Mileage Plus offers strong program partners, including Swissair, SAS, Cathay Pacific and Air France, along with first-class tie-ins (Westin and Hilton Hotels, Holland America Cruise Line). Mileage levels are high, but there are good bonus-mile opportunities and the awards are first-class.

Continental/Eastern/NY Air: Frequent Traveler Bonus/Travelbank

The Texas Air trio offers extensive travel destinations and three airlines on which to accumulate miles. This is an especially strong program for East Coast frequent fliers, who accumulate mileage on the basis of frequency of flights rather than pure distance traveled. TravelBank offers mileage opportunities and destinations at fares that are generally lower than the competition's.

Northwest: Worldperks

This program offers a host of international-travel awards that include the U.S., Europe and the Pacific. Overall, Northwest offers the lowest mileage levels necessary to win free travel. It has a unique minivacation award at the 40,000-mile level: a free one-night stay and two-day car rental with the free tickets.

TWA: Frequent Flight Bonus

TWA's program offers generous bonus-mileage specials on a regular basis. Its route system is world-wide, and its mileage levels are competitive. Its program tie-ins and partners are limited compared with other frequent-flier programs.

Delta Airlines/Western Airlines: Frequent Flyer/Travelpass

Delta and Western rank number one and two, respectively, in customer satisfaction, and a combined frequent-flier program will be enhanced by a large number of international airline partners. Delta's 1986 frequent-flier-program award levels were high (70,000 miles for two free domestic tickets), with fewer promotions offered to enhance mileage. The merger with Western will expand mileage opportunities and open up the program to West Coast frequent fliers.

The remaining major programs, Piedmont and USAir, are strong carriers in their respective regions, with international-program tie-ins. Midway Airlines is unique in offering not only travel awards but cash rewards. Its top award nets the Midway frequent flier $2000 or $2500 "credits'" on his Citicorp Diners Club card. Pacific Southwest Airlines, based in San Diego, is also a strong regional carrier tied in with TWA, Air Canada and Northwest.

For the frequent-flier techie, there are software packages from FlighTrak (Oregon) and Trigger Technologies (California) that enable the aficionado, as well as businesses and corporations, to keep track of mileage and develop a historical log of travel and mileage.

Although the airline industry is experiencing turbulent times, the frequent-flier programs have become an institution for virtually all carriers. Airline marketing personnel believe that the programs have become the primary vehicle for attracting and maintaining loyal customers, which can only mean clear skies ahead for the frequent flier.