Delta's double down devaluation

Earlier this year, Delta announced a sweeping overhaul for their frequent flyer program, switching over to a revenue-based system.  Before, elite status was based on elite-qualifying miles (EQMs) and segments, which is in line with all the other legacy carriers.  But starting next year, flyers will need to meet thresholds for both miles/segments and revenue in order to qualify for elite status.  In part, this is Delta's way of weeding out their bottom feeders and least valuable elite "moochers".

Yesterday, in yet another devaluation, Delta announced that EQMs will no longer be earned with one their very own and most important Skyteam alliance partners: Korean Airlines.  This is the first time any alliance member has refused to acknowledge EQMs period from an alliance partner.  Furthermore, reduced EQMs will also be accrued from a number of other Skyteam partners:

• Aeroflot
  
• Air Europa
  
• Czech
  
• Kenya Airways
  
• Middle East Airlines
  
• Saudia
  
• Tarom
  
• Aerolineas Argentinas
  
• China Airlines
  
• China Eastern
  
• China Southern
  
• Vietnam Airlines
  
• Xiamen Airlines

So that leaves Aeromexico, Air France, Alaska, Alitalia, GOL, KLM, and Virgin Australia as the last true partners standing that will dish out full EQMs with Delta.  Evidently, requiring revenue exclusively on Delta flights wasn't enough to weed out the bottom feeders.  Everyone has to go, including those flying with "less valuable" carriers.  Delta's justification:

We’d like you to understand that each airline determines its level of participation in partnership with us, so there are varying levels of customer rewards when flying with our partners.

As if Delta's program was already not one of the worst in the market.  In terms of the U.S. legacy carriers, Delta miles are by far the least valuable with the worst flexibility and most stringent rules.  But as airlines merge and fortress hubs abound, is Delta just adopting?  Perhaps this is the future of all frequent flyer programs, which are a scheme to begin with as 40% of members never bother to redeem their miles.  After their merger with Continental last year, United stripped their bottom and mid-tier elites from their most valuable benefits and made upgrades more difficult for top-tier elites.  Will American Airlines also follow suit after their merger with US Airways later this year?  Time will tell, but as history has always shown, yes.

United's letdown at Taipei

Eva Airlines' entry into Star Alliance on June 18th will be a pivotal move for the carrier as it essentially opens up TPE to the entire *A network.  The last nonstop *A route between the U.S. and TPE was discontinued by United in 2008, and China Airlines' Skyteam entry in 2011 solidified TPE as a Skyteam hub.  However, with Eva now as a *A member, Skyteam will have to share its fortress power out of TPE.  But exactly how big of a move is this for *A?

*A has hubs throughout Asia, most notably in NRT, HND, ICN, PVG, PEK, BKK, and SIN.  Skyteam is limited to TPE, ICN, PVG, and PEK.  In other words, TPE actually makes sense for Skyteam flyers since it's closer to South Asia than the other hubs.  However, *A hubs encircle Asia, making TPE an irrelevant stopover.  As China and southeast Asia continue to grow, TPE's significance may soon become a relic of the past.

Last year, United announced that it would resume nonstop flights between SFO-TPE in an effort to compete with fellow newly enshrined *A member Eva, who operates 2 nonstop flights per day to TPE during the peak season.  The route was scheduled to begin in April, but UA has since delayed it a full year to March 2014, citing irrelevant issues with the 787.  To add insult to injury, UA discontinued its NRT-TPE route last October, making ANA the lone *A carrier between that route.

So what's the fuss about?  For one thing, don't expect Eva to be generous on mileage earnings with United and US Airways members.  Discount economy fares on Eva only earn 50%-75% of base miles with UA.  And ANA's lone daily flight between NRT-TPE is now the only reasonable way of getting to TPE on *A, which will make layovers and award availability increasingly difficult.  So expect fare increases and full flights between those routes as biz travelers are going to stick with UA for mileage earnings and upgrade potentials.  In fact, ANA's NRT-TPE economy availability has officially been lost in the air.  That is, if you even have the luxury of being able to connect on the same day from your transpacific flight.

4 roundtrip flights to TPE in order to attain bottom-tier Premier Silver.  Oh wait, miles are not elite-qualifying . . .

It's interesting how Eva's entry into *A is only turning heads down.  With poor mileage earnings and upgrade potential, don't expect *A flyers to throw Eva a party.  ANA and UA have seemingly teamed up to make life miserable for *A flyers destined for TPE.  So much for alliances.

American Express Business Gold card with 75,000 sign-up bonus through May 17th

American Express is at it again with their quarterly 75,000 point sign-up bonus.  Terms and conditions are the same, requiring $10,000 in spending within the first 4 months of card membership.  If you can meet the spending threshold, apply for it as this is easily the best credit card sign-up bonus available.

• Earn 75,000 Membership Rewards® points after you spend $10,000 in purchases on the Card in the first 3 months of Card membership.
• Earn points even faster to get more rewards for your business.
• 3X points on airfare purchased from airlines. 2X points at US gas stations.
• Up to $100,000 in each category per year, then 1 point.
• Terms and limitations apply.
• Reduce travel costs, show appreciation for employees and clients, and offset everyday expenses by using points to get something back and grow your business.
• $0 introductory annual fee for the first year, then $175.

Amex Membership Rewards points are especially useful for British Airways Avios points, which carry the best redemption value for short-haul nonstop award flights with partner carriers.  ANA has a lucrative award chart and is also a great points transfer partner since they eliminated fuel surcharges for international award flights on United and US Airways.  Remember that this card is restricted to new members only, which Amex defines as applicants who have NOT held this product or any other Business Gold, Green or Platinum Card account within the last 12 months.

US Airways 100% bonus for purchasing miles

Right on the heels of Avianca's 100% bonus miles purchasing special, US Airways has followed suit with their own double miles purchasing offer:

Through May 31, 2013, when you buy or gift miles, you can get or give up to a 100% bonus – up to 50,000 miles.

• Buy/gift 5,000 – 9,000 miles, get a 25% bonus
• Buy/gift 10,000 – 19,000 miles, get a 50% bonus
• Buy/gift 20,000 – 29,000 miles, get a 75% bonus
• Buy/gift 30,000 – 50,000 miles, get a 100% bonus

Buying at least 30k miles (60k after bonus) is a no-brainer since your miles will be effectively doubled, thus coming out to 1.88 cents per mile.  This is more expensive than Avianca's 1.325 cents offer last month, but US Airways' promo can be a better deal for a number of popular routes since they have arguably the most lucrative award chart on the planet.  For example, an unparalleled gem of US Airways' award chart is the 90k miles for a roundtrip business class flight from North America to North Asia with a free stopover.  Free stopovers are normally limited to Star Alliance hubs, but this is often ignored by agents, who often allow flyers originating in North America to stopover in London or Paris en route to Hong Kong!  So the following around-the-world itinerary would cost you only $1,692 (90k x 1.88 cents) in business class:

Another gem of their award chart is travel within North Asia, which comes out to 25k miles for economy and a measly 30k miles for biz.  But remember that in order to maximize this offer, you'll want to buy at least 60k miles (after bonus) for $1,128.  That will top off 2 roundtrip biz flights from Sapporo to Hong Kong for only $564 each!

Keep in mind that when booking partner award flights with US Airways, you'll have to face incompetent phone agents and a $50 partner award booking fee.  Several calls may be required to book the actual flights that you want, but you still can't complain about an around-the-world business class flight for only $1,692.  If you're going to jump the gun, do it soon because US Airways is merging with American Airlines later this year with a consolidated frequent flyer program to go into effect next year.  Your miles will definitely be safe, but AA's award chart is not as lucrative for travel to and within Asia.

Maximing intra-Asia travel by purchasing Avianca award miles

Intra-Asia travel is notoriously expensive, especially when you're looking into non-hub destinations like Sapporo and Hangzhou.  For example, fares between Sapporo and Hong Kong, a 5-hour segment, regularly run in excess of $800 USD roundtrip.  Even major routes like Tokyo to Beijing, a 3 1/2 hour segment, rarely fall below $500.  Due to outrageous pricing within these markets, award miles come in very handy for intra-Asia travel.

Avianca, the flag carrier of Colombia, joined Star Alliance last year and has a lucrative award redemption chart.  For example, flights between North and South Asia, which encompass all of East Asia, are only 30k award miles roundtrip. One-way awards can be purchased for half price at 15k miles, and there are no fuel surcharges.

Avianca's loyalty program, LifeMiles, is known for occasionally offering 100% bonus miles for purchasing award miles.  Their current 100% bonus miles campaign runs through April 30th, and $30 will get you 2k miles instead of the normal 1k miles, thus pricing miles at 1.5 cents per piece.  30k x 1.5 cents = $450, so from that angle alone, many intra-Asia destinations become reasonably priced.  Better yet, Avianca allows you to purchase 60% of the miles required for a redemption at the time of booking (in the case of a 30k intra-Asia trip: 18k miles) for 1.275 cents each, so you'll only need to buy 12k miles initially for $180.  When you're ready to book your award flight, simply purchase the 18k miles for an additional $229.68.  So in total, you're looking at $409.68 for all award travel within East Asia, which is an absolute bargain considering that you can fly with a combination of elite flag carriers like Singapore Airlines, Thai Airways, ANA, Asiana, etc.

A real steal deal: roundtrip Sapporo to Hong Kong for $229.68 + 12k miles = $410

LifeMiles is a relatively new program, so changes, including award miles devaluation, can happen at any time.  But for now, this is the cheapest way to get around East Asia when they offer their 100% bonus miles campaigns.  Always check for award availability on their website before purchasing miles as availability may be sparse at best during the peak seasons.  Also, you need to have already been a LifeMiles member in order to take advantage of purchasing miles promotions, so be sure to sign-up for an account in order to be eligible for future 100% bonus miles campaigns.

Free Hilton HHonors Gold status with 6 easy steps

Hilton HHonors is one of the worst hotel programs in terms of points redemptions, but one of the most generous when it comes to elite status benefits.  Out of all hotel programs, only Hilton, Hyatt, and Starwood Preferred Guest offer free breakfast to top-tiered elites, and only Hilton offers it to their mid-tiered Gold elites.  In fact, one of the biggest gripes that top-tiered Hilton Platinum elites complain about is the general lack of differentiation between Platinum and Gold benefits.  That being said, Hilton is offering free Gold status for 1 year to Australian residents with a Visa Infinite credit card.  There are easy ways to circumvent the Australian residency and Visa Infinite card benefit, as outlined below:


1.  Login to your Hilton Honors account.  If you don't already have an account, you can create one for free.

2.  Create an Australian address by using this address generator.  Don't worry, you're not creating or replicating a real address.

3.  Change the address on your Hilton Honors profile to your newly generated Australian address.

4.  Generate a random Visa Infinite credit card number by using this website.  Scroll down to "Generate a credit card number" and select "Visa - Chase Manhattan Bank".  Replace the output with “4119 45xx xxxx xxxx” and hit generate.  Don't worry, you're not creating or replicating a real credit card number.

5.  Go to Hilton's Visa Infinite landing page and enter the credit card number that you generated.

6.   Gold status should be reflected on your account within 24 hours.  Then change the address associated your account back to your actual home address.


On top of free breakfast, Hilton Gold offers the following benefits as outlined on their website, many which are better than top-tier benefits for low-end hotel loyalty programs:

• Space-available upgrade to a preferred room (Waldorf Astoria^® Hotels & Resorts, Conrad^® Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton™)
• Quick Reservations & Check-In based on room preferences
• Late Checkout
• Express Checkout
• Spouse Stays Free
• Complimentary In-Room, High-Speed Internet Access during stays
• Complimentary Access to Fitness Centers/Health Clubs
• 2 Complimentary Bottles of Water per stay (Waldorf Astoria^® Hotels & Resorts, Conrad^® Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton™, Embassy Suites™, Hilton Garden Inn^®, Hilton Grand Vacations^®)
• eCheck-in: Select your room and check in 24 hours in advance at participating properties
•  Earn a 25% bonus on all Base Points

The Gold status offer is good through May 31st, 2013, but since Visa and Hilton can choose to pull it at any time, you should do it now.  You will be granted Gold status through March 31st, 2014.

Barclaycard Arrival World MasterCard with 40,000 point sign-up bonus and 2.2% cashback

The Barclaycard Arrival World MasterCard is offering a 40,000 mile sign-up bonus after spending $1,000 within the first 3 months of card membership, which is an easy threshold to reach.  Barclay "miles" are actual currency that can be converted to statement credit for 1 cent per mile, so the 40k mile sign-up bonus is worth $400.  But the real kicker is that the Barclaycard offers 2X miles for ALL purchases with no annual cap.  And if that's not already sweet enough, the card also gives you 10% miles back when you redeem your miles towards travel purchases, effectively increasing your cashback to 2.2% and your sign-up bonus to $440.

Typically, cashback cards aren't noteworthy because frequent flyer miles are worth more.  However, the Barclaycard is an exception with their 2.2% cashback.  One of the biggest advantage of cashback cards is the freedom to book without restrictions.  In the case of frequent flyer miles, you'll have to find an off-peak date with award availability in order to make your miles worthwhile.  But with Barclay miles, just book whatever flight, hotel, train, cruise, car, etc. that you want through any portal and you'll be able to redeem your miles towards it in the form of a statement credit.  You'll also be able to earn frequent flyer points with your respective carrier since your purchase still counts as a revenue ticket.  Some of the other card benefits include the following:

-No foreign exchange transaction fees
-$89 annual fee waived for the first year
-0% introductory APR for the first 12 months of card membership
-MasterCard's renowned purchase and travel protection coverage

The 40k sign-up bonus is for a limited time, so as always, don't delay.