Remember when...

...you wrote letters, sent postcards to stay in touch?
...you carried rolls of film when you go on a trip?
...you brought bulky cassette tapes for a long flight?

Well take a step back in time, into The Travel Group Archives.

Thursday, December 2, 2004

FREQUENT FLYER PROGRAMS: WHO'S THE BEST?

What is the best frequent-flyer program? Well, that depends. If you’re looking at the question from North American-wide or worldwide view, I happily defer to The Freddies Awards. Named after Sir Freddie Laker, founder of the world’s first great charter airline, The Freddies are sort of like the Oscars of the frequent-flyer world. Every year, based on members’ votes, the best rewards programs (airline and hotel) are picked. For 2003, the Freddie for the top program went to Alaska Airlines’ Mileage Plan. (The 2004 results are not yet in.)



“To win the Program of the Year award, a program must be…consistent, fair, attentive and generous. And for the second year in a row just such a performance was put in by the Alaska Airlines Mileage Plan program. Mileage Plan generated nothing but positive buzz. With the continued expansion of its route network (the Eskimo in Florida?), and hence, its award redemption possibilities; the additional upgrading of its Web presence; the offering of unique and lucrative bonuses (up to 100,000 bonus miles is a major promotion by any stretch of the frequent flyer imagination) and the above-board treatment of its elite members, Mileage Plan seemed to do everything right - and its members certainly noticed.”



So, from the point of view of North American travelers, Alaska’s plan is the best.*



On the other hand, we should consider which airline rewards program is best from the standpoint of our clients, who are mainly based in B.C. Obviously, Air Canada’s Aeroplan comes to mind as one likely candidate. Certainly, it has a lot of things going for it, the number one issue being that it rewards members traveling the airline we in BC (and Canada) are most likely to fly. Plus Aeroplan includes all of the Star Alliance airlines, such as United Airlines and Lufthansa, which cover a great deal more territory. And, it belongs to two very popular credit card affinity programs: CIBC’s Aerogold Visa and American Express. So, you can “top up” your flown mileage with credit card points, something you cannot do with all the U.S. programs unless you have a U.S. billing address. All of these factors guarantee that a typical B.C.-based traveler will earn more mileage on Aeroplan than any other program.



Aeroplan has a few strikes against it, however. To start, there is the continuing general dislike for its parent airline, Air Canada (although, Aeroplan tries to distance itself from Air Canada by claiming it is an independent entity). Also, there are policies and rules that compare negatively with the majority of U.S. frequent-flyer programs. For instance, Aeroplan does not offer the ability to cash in mileage to upgrade an economy ticket, which is probably the single most popular feature of virtually all U.S. programs. (In this regard, it is in line with most international carriers, who are not big fans of upgrades.) Also, Aeroplan is notoriously stingy in awarding points and “status miles.” All “deep discount” airfares within Canada and transborder (the so-called “Tango” fares) do not earn the “status miles” you need to reach high tier status (ie. Prestige, Elite, and SuperElite). This is a great sore spot with most business travelers, who often find themselves debating whether to spend hundreds of dollars more for a ticket just to maintain their status. On top of this, Aeroplan continues to award only 50% points for most discount fares within Canada and for “Tango” fares transborder.



There is also the thorny question of award travel availability. If you polled most Aeroplan members, they would tell you it is almost impossible to get points seats when they want them. In some cases, this is certainly true. Tara, our Frequent-flyer programs specialist, warns not to even try to get business class seats on points to destinations such as Hawaii, Australia, or Caribbean, unless you have prearranged with her to book these hard-to-get seats one year ahead. Tara must regularly book points tickets exactly to the day that the points seats first open up on Aeroplan’s computer (usually about 330 days ahead). On the other hand, Air Canada’s free seats policy has become increasingly generous over the years; and is currently running at about 10% of all available inventory. In this respect, Aeroplan’s free seat availability is superior to most other programs. Just don’t expect to get business class seats to London in the summer if you are checking in April. It won’t happen!



In terms of its higher tier policies, perks, and qualifying levels, Aeroplan is probably on par with most of its North American competitors. I could devote pages on this issue, as there are definitely important differences, both positive and negative, but on the whole Aeroplan comes out about even with the others.



The only other serious contender for best frequent-flyer program for B.C. travelers would have to be Alaska Airlines’ Mileage Plan. The reason: besides having very generous award levels, available awards seats, and upgrade policies (the latter being far superior to Aeroplan’s), the main issue for us is its partners. If you already have an Aeroplan membership, our agency advises you to join Alaska’s excellent plan. (We enroll our clients in any program you want for free.) Mileage Plan’s partners, which include American Airlines, Northwest, Delta, Hawaiian, Continental, and Helijet in North America, are a combination of North American airlines unparalleled in any other frequent-flyer program. So, if you find yourself flying American Airlines or Continental Airlines some day in the future, don’t be surprised if your agent suggests that we sign you up for the Alaska Mileage Plan rather than AAdvantage or One Pass. Chances are you will earn more mileage in this plan, with its excellent partners program, than in any program offered by these other airlines. Add to this a superb international partners list, which includes KLM, British Airways, Cathay Pacific, and Qantas, and you have the perfect program for a B.C. resident.



So, what is the best frequent-flyer program? My pick would be Alaska’s Mileage Plan. It appears to be the best overall North American program, and since virtually everyone in Canada already has Aeroplan by default anyway, the Alaska program is the one that will benefit our clients most.



If you have any questions or comments, I welcome your e-mails. Or, feel free to call our resident expert on all frequent-flyer matters, Tara Kay.



Useful Links:



Frequent-Flyer.com: A useful and well-organized summary of frequent-flyer programs for Americans (since Aeroplan is ignored); however, it’s summaries about program partnerships are not up-to-date. Go directly to the particular airline web sites for accurate information. It offers excellent links to all the major airline frequent-flyer programs, as well as news items, summaries of credit card affinity programs, and a chance to vote for your favourite program, airline, hotel chain, etc.



WebFlyer.com: Another well-constructed web site devoted to frequent-flyer programs and issues. Unlike Frequent-Flyer.com, this site offers extensive reviews of airline programs. It’s side-by-side comparisons of airline programs is very thorough and useful.



The Freddie Awards: an interesting site which is a bit like the Oscars of frequent-flyer programs.



Alaska Airlines’ Airline Partners: an impressive list that distinguishes this program from all other plans I know of, including Aeroplan.



Aeroplan Partners List: Probably the worst designed web site of all the major North American programs, click here and then click on a miniscule hyperlink called “Complete Partner List” near the top centre part of the page. If you lose this link, good luck trying to find this information again!





* Early this year, however, Alaska toughened many of its more generous rules about upgrades and qualification for high tier status—ie. “MVP” and “MVP Gold”—so it isn’t all that certain Mileage Plan will get the nod again from The Freddies’ for 2004.

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