Triangle Trip

United announced that they will offer Elite Qualifying Miles (EQM) from today to June 15, 2009 (here’s the link to register). With this promotion, you can make Premier Executive on UAL with 5 coast-to-coast trips. United obviously did this promotion in response to American Airline’s recently EQM promotion (here’s the link to register). Had you gone with UAL’s previous offer of paying for EQM or miles to gets status (see my previous post blasting on UAL for being desperate), you’d feel like a total fool.

So … will ghetto Delta be the next airline to offer a similar promotion? Delta did a similar promotion in 2008. It would not surprise me to see them counter UAL and AA in the next day or two.

All airlines have depreciated their mileage programs and offering fast track to obtaining status. What’s the value of earning actual miles and having loyalty to an airline? Hence we recommend you book hotel points with your credit cards (see previous post) and choose the most efficient way to travel as status does not matter on US airlines. The entire industry is heading to a bail out like banks, Detroit, etc.

Following up to my previous post regarding depreciation of airline mile, I am sure you have seen tons of posts about which is the best credit card to earn airline miles or hotel points or getting cash back. Since 2006, airlines have adjusted blackout dates, limited the number of seats available for redemption and increased the number of miles required for a free ticket. Furthermore, most airlines are charging customers for ticket redemption. For example, I had to pay $150 plus 60,000 miles to redeem a ticket on Delta with less than a week advance booking. If you use the old method of one penny (USD 0.01 per mile), my ticket cost me $750 ($150 + $600). In addition, I had to pay for taxes and fuel surcharge. Despite the fact that my ticket was a last minute purchase and would have been around the same price, I don’t think airline miles are as valuable compared to hotel point.

Hotels unlike airlines have relaxed their redemption policies. Many hotels have adjusted their redemption requirements for 2009. Starwood never had blackout dates which makes them one of the best hotel programs. Marriott recently jumped on the same bandwagon by eliminating blackout dates. Since January 2009, hotels have been on a promotion spree and issuing bonus points to loyal customers. Starwood and Hyatt properties have multiple generous bonus offers that goes on to mid-April. Hotels also have generous cancellation policies. Here are the promotions:  Hyatt and Starwood. Most hotels allow you to book a room and cancel on the same day before 6PM without any penalties. Airlines however charges you a fee to redeposit miles.

If you are a frequent travel to international destinations like myself, hotel points will come in very handy. Most American hotels in international destinations are clean compared to local hotel chains – i.e., Thistle in the UK can be great if it’s new or a hole in the wall if it’s in an old building. American hotels are also consistent with service and generally cost more. Redeeming hotel points at international destinations gives you the best bang for the buck. You can always find a cheap fare to London (i.e., American and United has $200 round trip fares almost every week) but you will rarely find a hotel deal at a Marriott or Hyatt in central London.

In summary, we recommend banking hotel points which is going up in value vs. banking airline miles that is facing inflation pressure. The more airline miles you have with an airline, the more money you will end up spending on them.

I am a frequent car renter as I do not own a car myself. I use car rentals to earn airline miles to keep my frequent flyer accounts active as most have expiration rules. Car rental companies claim to be very flexible when it comes to earning points.

All car rental companies allow you to either:

1. Earn Car Rental points which can be converted to free rental days or upgrades
2. Earn Frequent Flyer miles
3. Earn hotel points

Of the three choices, the only one that is worthwhile is #2 — Frequent Flyer miles. Here are the reasons why:

1. Car rental points do not hold value. Most car rental companies (mainly Hertz) change their redemption policy on an annual basis and increases the number of points you need to get a free car rental or upgrade. All major car rental points expire after one year if you do not use them.
2. Although all car rental companies list hotels as partners but you do not get hotel points from your rental unless you are staying at the hotel. You will also need to book the hotel during your car rental or book the car rental from the hotel’s website. This is a huge scam. Most car rental companies will not give you any points if you do not meet the requirements which appears as fine print.

In summary, always bank frequent flyer miles whenever you rent a car. Additionally, bank it on Northwest’s WorldPerks account as NWA is the only airline that doesn’t carry a surcharge at Hertz, Avis, and National. All rental car companies will charge you $0.50 per day for accumulating points on other airline programs aside from Northwest.