Thursday, August 30, 2012

Setting Travel Goals


Why do we go to these extremes to earn points? To go on vacation, of course! Earning points just to increase your frequent flyer account balances is crazy. Hoarding points is a dangerous tactic. The frequent flyer community has seen a devaluation of points on many airlines and hotel chains. The number of miles one will need for that coveted “free ticket or stay at a hotel” has gone up. If you have the points it is best to use them sooner rather than later.

Many of my family and friends disregard frequent flyer points because they complain that there are never “any free seats for 25,000 miles” or “too many blackout dates.” (Or they have seen the Alec Baldwin Capital One Credit Card commercial one too many times). I don’t argue with them because the more people in “the game” means fewer available award tickets or nights for the rest of us. Yes, I know this statement is harsh, but it’s the truth. The airline and hotel industries purposely limit the number award inventory on any given day or plane.  If people don’t want to join the game, I’m not going to fight to get them to join.

While the chance that you will score a free ticket home for Thanksgiving or Christmas is limited, a little planning and forethought can help you score tickets to almost any destination at almost anytime through the year. How do you score those difficult tickets to go on your dream vacation? By setting vacation goals and aligning your point earning strategies to accomplish those goals.

For example, earlier this year, Chris and his girlfriend, Kelsey told me that they wanted to go to London in the fall and were searching for cheap airlines fares. My first thought was "You are going to pay to go on vacation?!" After a long discussion, I convinced them to let me help them get to London with points. Oh, and to make things more difficult, they had to fly business class. The GF told me they didn’t need to fly business class, economy was fine. I smirked and told her by the time she was flying to London her ticket would be business class, not economy. She was skeptical, but I knew better.

With Chris and his Kelsey’s destination and timeframe picked, next was to figure out how many miles they need to get to and from London. From Washington, DC, direct flights to London are easiest flown on the Star Alliance (US Airways, United, Lufthansa etc.). Next go to these airline's award charts and see how many miles you will need for the trip. US Airways is here. United is here

I suggested they focus on United, as they already had small balances in their United accounts. Let's take a closer look at the United award chart:



Planning as far ahead in advance as Chris and Kelsey were, each could get a Saver Award Ticket in business class for about 100,000 miles roundtrip . Saver Award Tickets cost less, but are not offered on every flight. However, I have been able to purchase saver award tickets with less than 48 hours notices, so it is the luck of the draw.

I know some might be thinking why I pushed them to go business class when it cost 40,000 more miles with the Saver Ticket (Kelsey had the same question). I am of the belief that the airplane ride is very much a part of your vacation experience, so why not pamper yourself getting yourself there? Many people dread the thought of riding on an airplane because they know their seat in the back of the plane will be cramped and uncomfortable. Why not spend the extra miles and make yourself feel better? I don’t always sit in business and first class; you will many times see me in economy on flights shorter than 4 hours, but for my long-haul flights, I spend the extra points for comfort.

With the information that each would need 100,000 miles each for the trip, Chris and Kelsey were now ready to do the hard part: earn the miles. They sat down and created a list of ways the two of them could earn 100,000 miles on United. Did they sign-up for the 75,000 mile American Airlines Chase Credit Card? Not at that particular time, because it did not help them get points on United. However, they did apply for the Chase Sapphire because it got them 50,000 miles on United. I am going to leave Chris to explain the various methods they used to obtain the miles for their trip. All I will say is that the two of them are going to London, in business class, and have most of their nights in hotels paid for by points as well.

The first step to any great vacation starts with a dream. That dream will eventually turn into a goal, which then requires a plan to get the miles needed to accomplish that goal. Then you are halfway to your dream vacation. With a direction and a plan, you can tailor your spending habits to earn the miles needed for that dream vacation (we will talk soon about the various ways to earn miles).  Earning enough miles for your vacation will not happen overnight, but with time and persistence, the points needed will start to accumulate in your frequent flyer account.

Until next time, keep dreaming!

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