"Let me put this on my card … I need miles" "~ Mileage monkey
This is one of the many great sentences you can hear from a dedicated mileage credit card holder. What do these mileage monkeys love so much about airline miles? Perhaps this was because they could once be used as a flexible, free way to book airline tickets. Unfortunately, those days are gone and today airport miles are a shadow of their former glory. They are quite depreciated, lack flexibility, and only cover a fraction of the cost of the flight. I am writing this article to stop all the craziness and ask everyone to drop their mileage credit card.
Now before I go any further, let me first say that airlines have some value for miles and if I can get enough of them by flying multiple airlines, I will definitely discount them for any kind of ticket. My real beef with airlines miles is their community of popularity among credit card users as more fun alternatives to cool cash. Here are the top reasons why I like cash more than twice a mile every day and Friday – every week –
Most people do not associate inflation with miles of airline, but this has happened with their recent depreciation. From the beginning of the airline miles, the cost of ticketing in the continental United States has always been 25,000 miles. Today, losing a LeBron James to just one basketball game is better than booking a free ticket with the right schedule for 25,000 miles. A few years ago, airlines all decided to implement a new "unlimited" class of mileage tickets that are not limited to a limited number of reserved seats for flights, and its price tag was 50,000 miles. At lockstep, they reduced the number of disabled mileage tickets (the old 20,3 variants) by double the cost of the new effective cost of mileage tickets, leaving only a handful of airlines. Such inflation is the equivalent of a declining country, with weak financial governance like Mexico's peso in the early 1990s.
Lack of flexibility
In the past, a major benefit of airlines' miles is booking last-minute tickets. Booking tickets two days in advance is usually a costly endeavor, so using the miles instead of cash can save big savings. But it ended up being just like the old 25,000-mile ticket. Bargain hunters who don't want to pay 2x miles a mile to book a free flight are now forced to discount advance mileage ticket months (if not a full year) less than the ideal schedule (how about adding an extra layover and 3 hours)? ) Due to the lack of available limited tickets.
Nothing is free
Not so much with my last beef mileage programs as with the new spending structure to fly. Over the years, airlines have been losing money. Fierce competition and rising costs (both fuel and labor) have put most airlines on the line. Earlier this year, fuel prices (including jet fuel) were hitting new heights all the time, so airlines decided to encourage their customers to carry less luggage by charging for checked luggage. This is just one of the many fees you can be responsible for paying for booking a ticket, including mileage. Last year, I booked two international tickets, including miles, and had to pay airport tax hundreds of dollars. So even if you're lucky enough to get a ticket for 25,000 miles, you still can't escape the airport without some cool cash.
The fact of the matter is, "Airlines Airlines Miles" is a pseudo currency with no checks and balances. Airlines that issue mileage credits have control over pricing, changing rules or starting to charge extra fees when appropriate. I have already done this math with the true economic value of an airline's miles, showing that you are better off collecting cash rewards than an airline's miles. For all these reasons, I want to earn cash for all my credit card purchases rather than the airline miles. To add insult to injury, most cash back rewards cards have no annual fee, but for the "convenience" of owning a normal mileage card, it will cost between $ 60 and $ 100 a year. With all this evidence, the choice is clear … Don't be a mileage monkey. Just say no to mileage cards and say yes to credit card cash.
PS. As a disapproval, I have had a great deal of luck with the Southwestern Rewards program which is based on trips taken, not miles. I was commenting to Mrs. Franco the other day about how funny it was that Southwest was once considered a "discount airlines" and I'm now seeing it as a luxury liner (free check bag, curbside check in, snacks, no booking fee, And a decent rewards program).