Airline Frequent Flier Programs 101

Most mid-sized and large airlines today offer Frequent Flier Programmes (FFPs), which allow its members to earn air miles on their travel with the airline (and sometimes, with partner airlines, codeshare partners, other service partners, etc). Air miles are extremely useful, particularly in these recessionary times, to pay for travel (note: you may still need to pay cash for applicable taxes), especially personal travel. Here is the low down on maximizing benefits from FFPs.

The two most common approaches to air miles on flights, are (a) the distance travelled concept and (b) fixed miles. While in the former, miles earned are based on the standard distance (as determined by IATA) between origin and destination points, under the latter, there is a standard number of miles to be earned for every segment, irrespective of actual distance between the origin and destination points (usually seen on continental Europe). In both cases, a discount or premium may apply, based on whether the ticket purchased is a discounted ticket, fare class, travel class, etc. Members in the elite tier of the FFP may also be entitled to a higher number of miles based on their tier status.

Air miles can also be earned for in-flight purchases, availing the services of partner airlines, or other corporate / commercial partners including for car rentals, travel and tour bookings, mobile phone services and co-branded credit cards. They can be redeemed for air tickets (beware of fees and taxes that you may have to pay for in cash), other goods or services including in-flight shopping, partner services (car rentals, mobile services, etc), or for increased benefits such as airport lounge access or priority bookings.

Air miles provide a great opportunity to fulfill some of your travel desires, that you may not be willing (or indeed, able) to pay for! Here are some ideas to maximize earnings and benefits from air miles:

• It is important to select the correct FFP for you. Make sure you register for the airline (or airlines) that you are most likely to use – this involves some preliminary research, so try and answer the following questions: which are the destinations that you typically fly to; what airlines fly there; do those airlines provide reasonably good service (consider if they provide meals, if you are so inclined!); if you travel internationally, does the airline you want to select fly abroad, or does it have adequate tie-ups (codeshare / partners) with other airlines abroad. Sometimes, you may want to consider enrolling into an alliance program that has many airline partners (eg, StarAlliance). Also check if the airline has a co-branded credit card program with a credit card company (see below).
• Consider the three key mantras when flying – FFP tier, class of travel, fare paid. Usually, elite tier members earn a set percentage more in terms of miles, even on discounted fares. Similarly, miles earned increase with class of travel – coach or economy earn the least, followed in increasing order by premium economy (where available) business and first. They also increase based on the fare you pay. However, be warned: many airlines do not provide miles earning opportunities for really low fare seats.
• Go up the FFP tiers by accumulating as many miles as you can. Often, you will find that not all the miles you earn help you in reaching the next higher / elite tier, so read the fine print carefully!
• Consider the credit card that you use. Today, most large airlines co-brand themselves with credit / debit card companies (CCs), which means more benefits for you. Obviously, you will want to consider the facilities and conveniences offered by the CC – the following presumes that these are acceptable. Co-branded cards allow you to earn miles on your card spends, but you will not be eligible for the rewards points scheme offered by the CC – decide which is more important to you, by comparing the dollar benefit you get out of card usage, between the CC's reward points scheme and the air miles you could earn. Assuming you are happy with the co-branded CC, use it as often as possible – this automatically means more miles for you.
• Do you rent cars when you travel? If you do, you'll find that airlines often have tie-ups with car rental companies (like Avis and Hertz), and you usually earn miles (sometimes in multiples) against rentals. I find, that as an elite tier member of a FFP, you are often eligible for car upgrades to the next level, free anywhere drop-off and other privileges.
• Other earning opportunities and benefits – there are several other opportunities that are available under FFPs – visit the airline's website as often as possible. Sometimes, airlines conduct surveys and offer a reasonable amount of air miles to complete these. There could also be extra benefits available if you avail of partner services (one airline offers a tie-up with a florist that offers a 20% discount on its products and also provides nationwide deliveries within 12 hours!). Register with the airline's website / FFP portal, and although you may receive more mails than you may like, it is often worth it.
• Another big advantage of air miles is when you use them – because you normally utilize the same number of miles irrespective of how early (or late) you book relative to your departure date, your ticket is normally considered the equivalent of a full-fare ticket, and so entitles you to many privileges. For a start, your ticket is completely flexible as far as dates are concerned so you should be able to accommodate changes to travel schedules easily (some airlines may charge a nominal fee or number of miles for changes or cancellation, but not always).

So go ahead, enroll (if you haven't already) and get ready to pack in those miles for your dream holiday!