More airlines' frequent-flier miles expire faster

[Marcia3641]

Hello Valued Travelers!

Just an email FYI regarding frequent flier miles from our source, USA Today. If you have any questions please don’t hesitate to give us a call or email your travel agent here at The Business Travel Experts.


Updated 1/30/2007 7:12 AM ET

By Gary Stoller, USA TODAY

Travelers who infrequently use their frequent-flier accounts may have to kiss their miles goodbye.

A growing number of airlines are establishing stricter policies that eliminate miles in inactive accounts.

Many travelers who hoped to some day parlay the miles into free flights or use them for a seat upgrade are furious.

The changes:

•US Airways. The carrier begins a new policy Wednesday that will delete all the miles of frequent-flier club members who haven't earned or redeemed Dividend Miles in 18 months, down from the current 36 months. It means accounts inactive since mid-2005 will be nullified.

•United Airlines. Beginning next Dec. 31, United will make the same change as US Airways.

•Delta Air Lines. Last month, Delta began erasing all miles in SkyMiles accounts that had been dormant for two calendar years. Its policy had been to permit 36 months of inactivity before miles would disappear.

"Frequent-flier miles are a liability on the company books," says Barbara Beyer, president of airline consultant Avmark. "The airlines really want to get rid of them as they clean up their balance sheets."

But the carriers may also be alienating potential customers.

"I hate the concept of expiring miles," says Josh Perlstein, president of a marketing and advertising company in Atlanta whose credits expired in AirTran's frequent-flier program.

Perlstein says he still flies on AirTran, but avoids the airline when competitors offer the same price and convenience.

Strict, or not

Of 16 U.S. airlines contacted by USA TODAY, only Continental and Aloha said miles do not expire in their frequent-flier members' accounts. Continental has a written policy stating that miles can expire if none are earned in 18 months, but the airline doesn't act on it, says spokesman David Messing.

AirTran and JetBlue have the strictest expiration policies, with credits or miles expiring one year after they are earned.

Airlines' expiration policies have nuances. For example, some carriers require miles be added to keep accounts alive. For others, adding or redeeming miles will keep the account alive.

Members of many airlines' frequent-flier clubs can prevent their miles from expiring by cashing some in for a magazine subscription. Or they can make an online purchase from a retail store that's affiliated with an airline and provides bonus miles.

The moves by airlines to tighten mileage expiration policies may not stick, says Andrew Watterson, of Mercer Management Consulting.

"Like airline prices, mileage expiration policies seem to go up and down based on the strength of the travel market," the airline consultant says. "It wasn't long ago when airlines were competing to lengthen the expiration period."

But that doesn't console frequent fliers such as Jerry Quintiliani, of Peoria, Ill., who isn't happy about the new policies. "I think it stinks, but what choice is there?" says the sales manager for a chemical company.

Quintiliani, who says about 20,000 of his American Airlines AAdvantage miles expired, says miles "have become nearly useless" anyway, because airlines have so few free seats available to vacation destinations.

Notification issues

Frequent fliers complain that airlines aren't giving them enough, or any, notice before they eliminate miles from dormant accounts. Some US Airways fliers, for example, say they received no notice before their miles expired.

Philip Gee, spokesman for US Airways, says "millions of customers" were notified with mailings or e-mail. The policy change was also posted on the airline's website, he says.

Midwest Airlines mails a notice to its frequent-flier club members who haven't earned miles for at least 30 months. The members are reminded about the airline's 36-month expiration policy and are offered a bargain fare to any city it flies to, says marketing director Steve Mathwig.

"We don't want to expire their miles, and would rather have them fly with us again and stay active in the program," he says.

Many airlines are letting fliers whose miles have expired buy them back for a fee. US Airways charges a $50 "processing fee" and a "reactivation fee" of 1 cent per mile.

"This is inane," John Rainey, a software consultant in Marietta, S.C., says of airlines' buyback policies. "I have already paid for the miles once. … Why would I choose to pay for it again rather than choose a more customer-friendly airline?"

[ownsmany]

If anyone has US Air Miles that will be lost - why not donate them to a fellow tugger that can us them.

We fly US Air all the time & would love any miles that someone wants to donate as they will lose anyway.

I have to check my other ff acounts. I'm sure I may have some ff miles on other carriers that may soon expire - that I could donate to someone else.

Originally Posted by Marcia3641

Hello Valued Travelers!

Just an email FYI regarding frequent flier miles from our source, USA Today. If you have any questions please don’t hesitate to give us a call or email your travel agent here at The Business Travel Experts.


Updated 1/30/2007 7:12 AM ET

By Gary Stoller, USA TODAY

Travelers who infrequently use their frequent-flier accounts may have to kiss their miles goodbye.

A growing number of airlines are establishing stricter policies that eliminate miles in inactive accounts.

Many travelers who hoped to some day parlay the miles into free flights or use them for a seat upgrade are furious.

The changes:

•US Airways. The carrier begins a new policy Wednesday that will delete all the miles of frequent-flier club members who haven't earned or redeemed Dividend Miles in 18 months, down from the current 36 months. It means accounts inactive since mid-2005 will be nullified.

•United Airlines. Beginning next Dec. 31, United will make the same change as US Airways.

•Delta Air Lines. Last month, Delta began erasing all miles in SkyMiles accounts that had been dormant for two calendar years. Its policy had been to permit 36 months of inactivity before miles would disappear.

"Frequent-flier miles are a liability on the company books," says Barbara Beyer, president of airline consultant Avmark. "The airlines really want to get rid of them as they clean up their balance sheets."

But the carriers may also be alienating potential customers.

"I hate the concept of expiring miles," says Josh Perlstein, president of a marketing and advertising company in Atlanta whose credits expired in AirTran's frequent-flier program.

Perlstein says he still flies on AirTran, but avoids the airline when competitors offer the same price and convenience.

Strict, or not

Of 16 U.S. airlines contacted by USA TODAY, only Continental and Aloha said miles do not expire in their frequent-flier members' accounts. Continental has a written policy stating that miles can expire if none are earned in 18 months, but the airline doesn't act on it, says spokesman David Messing.

AirTran and JetBlue have the strictest expiration policies, with credits or miles expiring one year after they are earned.

Airlines' expiration policies have nuances. For example, some carriers require miles be added to keep accounts alive. For others, adding or redeeming miles will keep the account alive.

Members of many airlines' frequent-flier clubs can prevent their miles from expiring by cashing some in for a magazine subscription. Or they can make an online purchase from a retail store that's affiliated with an airline and provides bonus miles.

The moves by airlines to tighten mileage expiration policies may not stick, says Andrew Watterson, of Mercer Management Consulting.

"Like airline prices, mileage expiration policies seem to go up and down based on the strength of the travel market," the airline consultant says. "It wasn't long ago when airlines were competing to lengthen the expiration period."

But that doesn't console frequent fliers such as Jerry Quintiliani, of Peoria, Ill., who isn't happy about the new policies. "I think it stinks, but what choice is there?" says the sales manager for a chemical company.

Quintiliani, who says about 20,000 of his American Airlines AAdvantage miles expired, says miles "have become nearly useless" anyway, because airlines have so few free seats available to vacation destinations.

Notification issues

Frequent fliers complain that airlines aren't giving them enough, or any, notice before they eliminate miles from dormant accounts. Some US Airways fliers, for example, say they received no notice before their miles expired.

Philip Gee, spokesman for US Airways, says "millions of customers" were notified with mailings or e-mail. The policy change was also posted on the airline's website, he says.

Midwest Airlines mails a notice to its frequent-flier club members who haven't earned miles for at least 30 months. The members are reminded about the airline's 36-month expiration policy and are offered a bargain fare to any city it flies to, says marketing director Steve Mathwig.

"We don't want to expire their miles, and would rather have them fly with us again and stay active in the program," he says.

Many airlines are letting fliers whose miles have expired buy them back for a fee. US Airways charges a $50 "processing fee" and a "reactivation fee" of 1 cent per mile.

"This is inane," John Rainey, a software consultant in Marietta, S.C., says of airlines' buyback policies. "I have already paid for the miles once. … Why would I choose to pay for it again rather than choose a more customer-friendly airline?"

[falmouth3]

I think you can keep your miles by getting a credit card that provides miles to your account. Many of them are free for a year and you get a number of miles with your first charge.

Also, you can get miles by buying something through the airlines affiliated merchants. I bought myself some flowers to keep my husband's US Airways miles active.

Sue

[Judy]

You're right Sue. But many merchants take a long time to post the miles to your frequent flier account.
If a mileage expiration date is fast approaching, the quickest way I know to add miles is through the dining program. Link though the airline's website and sign up. You have to link a credit card to the dining program. Then eat at one of the affiliated restaurants. Usually the miles post within a few days. Right before you go out to eat, verify that the restaurant is still in the program and that it offers miles on that day.

[runlikeanantelope]

[Message deleted. Offers to buy, sell or exchange items of value are not permitted on these forums. Dave M, BBS Moderator]

[Timeshare Von]

Originally Posted by ownsmany

If anyone has US Air Miles that will be lost - why not donate them to a fellow tugger that can us them.

We fly US Air all the time & would love any miles that someone wants to donate as they will lose anyway.

I have to check my other ff acounts. I'm sure I may have some ff miles on other carriers that may soon expire - that I could donate to someone else.

I don't know about all airlines, because I'm a loyal NWAirlines frequent flier but . . .

With Northwest, if you move/transfer miles from one account to another, there is a fee, I think around $50 or $75. We find ourselves from time to time having to move my husband's miles over into my account in order to have enough miles for two first class tickets to Hawaii (150k total) and have had to pay a fee.

Yvonne

[Timeshare Von]

The entire basis of frequent flier programs is to reward those who are loyal to and frequent customers of an airline. I believe most airlines have the lowest level of free tickets set at 25k miles (Midwest may still be at just 20k). If over the course of less than three years, someone is not earning enough to earn a ticket, I would say by definition, they are not "frequent" (or loyal) customers of that particular airline. That is part of the reason why they offer you such an incentive program so that you will choose them even when a ticket may be $10-$25 more that a competitor.

With most of the airlines suffering financial problems and several working their way out of bankruptcy, it isn't any wonder that they are having to retool their loyalty rewards programs. I would say it is a continued sign of the times.

Yvonne